PRESIDENT Dr. Mohamed Irfaan Ali continues to emphasise that Guyana’s forest is vital to the fight against climate change and this role should be valued. Although international players are aware of this, President Ali said that while many stakeholders have pledged to support these initiatives, there needs to be a more solid commitment to effectively finance these programmes around the world.

Given this, President Ali continued to advocate for a structured procedure to expedite funding support through forest carbon markets and other programmes. During a presentation at the 6th Annual Security Challenges in Latin America Forum, which was held at the Johns Hopkins University Bloomberg Centre, School of Advanced International Studies, the Head of State argued for the need to step up efforts to conserve forests in the Caribbean and Latin America.

In the candid conversation, the Head of State of Guyana said, “I would say there is tremendous commitment in words, in understanding that there is a value, but there is still need for more movement towards developing a mechanism through which that value is monetised.”

Recognising that Guyana has worked to increase funding for the conservation of both its own forest and the forests of its neighbours that are a part of the Amazon Basin since 2007, President Ali explained that although Guyana has joined a voluntary market to finance the sale of forest carbon credits, Guyana, and other forested nations would benefit as well from the compliance market. In February 2024, Guyana’s forest carbon credits were issued for year 2021 and met the requirements for sale in the aviation compliance market.  This is a major milestone for Guyana.
To put it briefly, carbon markets are exchange platforms where carbon credits can be purchased and sold. By buying carbon credits from organisations that eliminate or significantly reduce greenhouse gas emissions, businesses and individuals can use the carbon market to offset their carbon emissions.

President Ali also stated that the market is currently “not getting the type of reaction that it deserves.” In order to support a market-based approach, the value of forests needs to be incorporated into the frameworks for policymaking, President Ali emphasised. He also explained that an open dialogue on policy and decision-making is necessary for industrialised nations to recognise the importance of forests.

One of the biggest transactions in history took place in 2022 when Guyana sold 37.5 million carbon credits for a minimum of US$750 million, to be paid between 2022 and 2032 (a third of the credits Guyana will get throughout the 2016–30 period).

Guyana has become the first country to approve the use of carbon units in the CORSIA, a global aviation scheme, by making the First Paris Agreement Corresponding Adjustment for ART-Issued TREES Carbon Credits.

President Ali said, “We were one of the first countries to have an agreement with the Kingdom of Norway, and then we had an end-user agreement. We are now working on another agreement. So, we have proven that the model can work, both in the voluntary market and the compliance market – we now have to move that on a global scale in a very structured market, and that is what we want to do. Work with everyone to bring this.”

President Ali added that there is a “lack of will” from some stakeholders, to progress on forests and the carbon market. He noted, “While on one hand, the world is saying we must take these measures, we must adopt these policies; on the other hand, there is no commitment when it comes to providing the resources. There is no commitment when it comes to valuing and monetising the assets that are key to keeping our planet alive.”

Furthermore, he pointed out that the forest might be the most valuable resource globally, as President Ali stated, offering a service to all individuals.

President Ali said: “In any society, in any economic structure model, you have to pay for that service. You have to pay for that service, and that is why we believe that the time has come for this monetisation to be structured and to be compulsory. And that is what we are working on; we are pushing ahead with.”