GUYANA remains steadfast in its support for a higher price for carbon credits on the global market. The objective, as per President Dr. Irfaan Ali, is to attain a price that is consistent with the expense of climate action.

President Ali was, at the time, participating in a discussion at the University of Guyana with visiting former British Prime Minister Tony Blair. In response to a question about balancing development with the protection of rainforests, President Ali noted that there currently exists a severe financing gap.

The President of Guyana emphasised the need for $2.3 trillion in the area to meet the crucial Sustainable Development Goals by 2030. President Ali also explained that what would be required is a huge push for effective carbon pricing to match what is required to finance mitigation and adaptation needs of countries that are most affected by the climate crisis.

According to President Ali, “We are blessed with a lot of natural resources. But if you have a country with a standing forest and there’s no market for the standing forest. The people of that country still have to sustain their livelihoods. The people of that country still have to focus on development. So, what is very critical is that, as all the studies have shown, for us to achieve the transition we want with energy and for us to achieve the shift in development focus, the carbon price must be somewhere around US$70 per tonne to effectively account for the matching cost for adaptation and mitigation actions that are urgently needed. And that is why the market is so important. We have to fix that fundamentally.”

Forest countries as a grouping, according to the President, ought to work together to address this fundamental pricing issue. He pointed out that, until that is accomplished, the issue of striking a balance between resource development and protection will persist.

“Unless we’re able to fix the fundamentals, this question and this balance will continue to confront us. How is it that we can get the world to agree that the price for carbon credits, based on what we want to achieve, net zero, the price level has to be at the right level? Are we willing to make that bold and important decision?” explained President Ali.

Guyana and Hess Corporation agreed to a pact in December 2022 under which Guyana will get US$750 million over the course of ten years in exchange for 30% of its forest. A tariff of US$15 per tonne of carbon was agreed upon in Guyana’s deal, and, so far, 15% ($4.7 billion) has been disbursed to 242 Amerindian villages.

Former Prime Minister Blair emphasised the rainforest of Guyana as having immense educational and learning potential. He also stressed that Guyana has showed its credibility on the international stage in the fight against climate change through its efforts to conserve forests, which he described as a “rare commodity.”

The former Prime Minister said, “I think you’re in a very strong leadership position on this because you are one of the very few countries in the world that actually preserved their rainforests. The President will be able to come to (the upcoming global climate change talks), and speak from a position of credibility. Frankly, in the climate debate, that’s quite a rare commodity.”

The United Nations Climate Change Conference/Conference of the Parties of the UNFCCC, commonly known as COP 28, is being held from November 30 to December 12 in Dubai, United Arab Emirates (UAE). The future climate change negotiations issues are referred to as such.

Blair asserts that Guyana’s credibility as a result of its Low Carbon Development Strategy (LCDS) implementation will be useful during the event and might even influence the subsequent development at the international level.

“We have to create a mechanism whereby the supposed contrast of ‘do you develop or protect the environment?’ is eliminated. And that’s where this LCDS is important because it has worked for you over the years, but it can be developed over the next few years if you get the right propulsion from the COP28 to something very, very big,” Blair said.

Along with preserving the country’s diverse environment and abundant wildlife, Guyana’s 18.4 million hectares of total forest cover annually sequester 154 million tonnes of carbon dioxide from the atmosphere and store more than 19.5 gigatonnes of carbon dioxide equivalents.

This is part of a weekly series on LCDS.) The author can be contacted at cparkinson0206@gmail.com