GUYANA will be receiving €5 million (G$1.1 billion) to support alternative, sustainable, income-generating activities in forest-dependent communities and reduce pressure on forest resources with the launch of the “Sustainable Forest Livelihoods for communities of Guyana and Suriname” between Guyana and the European Union (EU).

The initiative was launched on Wednesday during a brief ceremony at State House, where the contract for the project was handed over to President, Dr Irfaan Ali, by Deputy Secretary-General of the European External Action Service of the European Union, Helena Konig.

The project aims to protect the Amazon rainforest and increase the resilience of local populations against external pressures. The Guiana Shield targeted by the project has a large amount of intact forest cover.

The forest covers about 90 per cent of the surface of Guyana and Suriname. However, the area is environmentally, socially and culturally challenged, and is under pressure from illegal logging and increasing extractive projects.

“We have to develop new ways of incentivizing the global fight to safeguard forests. The main actions identified to be advanced by this cooperation will look to strengthen sustainable livelihoods in forest communities, and enhance knowledge capacity for sustainable use and supply of nature-based goods and services,” President Ali commented.

He added: “This is a partnership based on solving problems between parties who will not shy away from taking on difficult challenges. Partnerships are absolutely essential to addressing global challenges and also attending to local development. We are very pleased to join the European Union in creating this important partnership to safeguard forests, while sustaining forest livelihoods.”

The project falls under a Memorandum of Understanding (MoU) on a Forest Partnership that Guyana signed with the EU last November on the sidelines of COP 27 in Egypt.

“I’m very pleased that we are advancing this process to implementation so quickly… and I think that we should all congratulate all the stakeholders for advancing this process very efficiently and [in a] very timely fashion,” Dr Ali said.

The project is fully in line with Guyana’s Low Carbon Development Strategy (LCDS) 2030, which strives to preserve and enhance the sustainable development role of forests as a key asset.

According to Dr Ali, this initiative fits well into Guyana’s plan to provide a practical example to the world on how the environment, forests, freshwater and biodiversity must be safeguarded to sustain mankind and life as we know it.

In Guyana, this initiative will primarily focus on communities in Region Nine (Upper Takutu-Upper Essequibo and Region 10 (Upper Demerara-Upper Berbice). The project will be implemented over the next four years. Implementing partners for the project will be the French Development Agency (AFD) with the World Wildlife Fund (WWF) Guianas.

This project is a flagship project of the EU’s Global Gateway strategy, through which the EU is investing in smart, clean and sustainable connections across the globe.

“This project will provide support to local forest communities to increase knowledge and capacity for the use and supply of nature-based goods and services, and provide support to improve skills, working practices, equipment, as well as market links and access to finance,” Konig said.

Konig described Guyana as a priority country for the EU in terms of forest conservation and sustainable management.

“It shows the EU’s commitment towards a coherent partnership with Guyana on forest preservation and the sustainable use or forest resources,” Konig said.

President Dr Ali thanked the EU for its longstanding support to Guyana and its environmental preservation efforts.

“Guyana and the European Union have been lasting partners working together to advance to enhance the role of Guyana’s forests in sustainable and inclusive national development, and I want to thank the European Union for this relentless support for us and forested countries,” Dr Ali said.

Activities financed by the project could include: conducting studies on suitable models of the mechanism; developing a funding strategy; establishing working groups with stakeholders and financial partners, as well as piloting and providing targeted operational support.

During an inception phase of nine months complementary studies, assessments and analyses, including environmental and social safeguards will be conducted. There will also be the fine- tuning and reviewing of indicative activities based on in-depth engagements with beneficiary communities.

Activities carried out under the project will be done in close coordination with national institutions and local partners to maximise the benefits of significant resources already invested in the communities, particularly as it relates to money invested in indigenous communities under Guyana’s carbon-credit deal with Hess Corporation.