In order to expand its involvement in the carbon markets, Guyana is seeking to broaden its engagement in forest and carbon financing, utilising any remaining credits available to the country.
Speaking with the LatinFinance publication earlier in October, Senior Minister, Office of the President with Responsibility for Finance, Dr. Ashni Singh spoke about the landmark carbon credits agreement that Guyana has entered into for ART TREES carbon credits.
He expressed Guyana’s commitment to fully participate in the market framework established under the United Nations Framework Convention on Climate Change (UNFCCC).
Under the terms of the agreement, Guyana will be paid a minimum of $750 million for carbon credits over a 10-year period, which, according to Dr. Singh, comprise only one-third of Guyana’s available carbon credits.
“We received several other offers when we reached the agreement that we have finalised last year. We know that there is interest,” he said in an interview on the sidelines of the World Bank/IMF annual meeting in Marrakech, Morocco. We are watching the market. Timing is important to get the best possible price,” he said.
After the mobilisation of domestic revenue and oil revenue, carbon credits are regarded as the third source of income. Singh stated that the nation hopes to build global momentum for carbon credits, as the country is continuing to examine the broad range of options that are available for climate finance.
MAINTAINED HIGH FOREST COVER
The finance minister stated that over the period 2010 to 2015, Guyana received over $220 million in forest funding from Norway. According to him, the Amazon forests encircle two-thirds of Guyana, and the administration of President Irfaan Ali hopes to continually highlight this by pointing out that the nation has escaped the widespread deforestation that has impacted several countries in the Amazon Basin.
In the new category of “high forest cover/low deforestation countries,” it is ranked #1 out of 33 countries on the globe.
“Preserving standing forests is the most efficient way to combat climate change,” said the Minister. “We have safeguarded our forests, and we should be compensated for this.”
He also added that the Government of Guyana is also making an effort to lower greenhouse gas emissions from energy by switching from the use of fuel oil to natural gas, solar power, and hydroelectric plants.
Dr. Singh further stated that setting up procedures to guarantee that newly built infrastructure for agribusiness and transport is environmentally friendly is likewise a laborious task. Noting that 50,000 acres of new farmland with environmentally friendly irrigation and drainage systems are part of the development plan.
Finally, Minister Ashni Singh explained that even with Guyana being a major oil producer, the country is a vast net carbon sink due to its forests and very low environmental footprint.
“Developing the green and blue economies must work hand in hand, and we need to continually recognise the exemplary track record that Guyana has had in sustainable forest management. In many ways, this balanced approach to development is the most compelling part of the Guyana story,” the finance minister emphasised.
This is part of a weekly series on the LCDS. The author can be contacted at cparkinson0206@gmail.com.
