-to support low carbon intensity path

THE National Assembly on Thursday approved the sum of $26,532,000,000 in supplementary funding for capital projects which are expected to support critical initiatives under the government’s Low Carbon Development Strategy (LCDS).

When the National Assembly was resolved into the Committee of Supply to consider these estimates as part of the second financial paper of 2023, the Senior Minister within the Office of the President with responsibility for Finance, Dr Ashni Singh stated that the document was a companion to the first one that was approved earlier in the day.

While he noted that the first financial paper addresses the disbursement of 15 per cent of the proceeds from the sale of carbon credits, which is earmarked for development projects in Amerindian communities, this second paper covers the remaining 85 per cent.

Dr Singh reminded the committee that this was a completely new transaction and a completely new arrangement as Guyana is the first country in the world to achieve the jurisdictional sale of its carbon credits.

To this end, when asked about the broad objectives and what the sum of $26.5 billion will be used for he said: “The broad objectives of the projects to be financed are outlined in the Low Carbon Development Strategy 2030.”

According to Dr. Singh, “The critical initiatives under LCDS are those that will enable us to transition to a high economic growth and low carbon intensity path and amongst these… would of course be climate adaptation.”

Some of the projects, he said, would include significant investments for the reinforcement and expansion of Guyana’s sea defenses and investments into drainage and irrigation.

Against this backdrop, he said that the government has noted publicly that they hope to replicate the Hope Canal in Regions Five and Six.
Investments will also be made for additional pumps and equipment like long-range excavators, and the reinforcement of sluices among other things.

Added to this, he noted that some of these projects will be projects that will extend beyond the year and will be added to the budget in the way that they should be.

Meanwhile, a Ministry of Finance press release issued following the approval, stated that recognising the urgent need to address the impacts of climate change, the government is prioritising one of the largest investments in climate adaptation in Guyana’s history.

The release said that a substantial portion of these allocated funds will be dedicated to implementing comprehensive climate adaptation measures throughout the country.

Further, it noted that by investing in climate adaptation, Guyana will enhance its ability to mitigate risks and build resilience and ensure the protection of its people, infrastructure and natural resources.

“This considerable investment will support various climate adaptation initiatives, including the construction of two major canals in Regions Five and Six, the rehabilitation of 20 sluices in Regions Two, Three, Four, Five and Six as well as the procurement of pumps and excavators for use across multiple regions.