– Oil sector urged to step up
By Shaniya Harding

THE Government of Guyana continues to make significant strides in climate resilience and environmental protection, even as it calls on international oil companies to increase their efforts in supporting the country’s green agenda.
At a recent press conference, Vice President, Dr. Bharrat Jagdeo, outlined the administration’s comprehensive approach to climate change adaptation and mitigation.
“We have looked at the carbon and ecosystems services; we are looking at adaptation. We are going to expand to look at integrated water management and also bio-diversity protection. These are four areas for enhanced focus,” the Vice President stated, highlighting the government’s proactive stance.

Dr. Jagdeo emphasised the importance of climate-resilient construction, particularly in addressing Guyana’s unique geographical challenges.
“Given that we are outside of the hurricane zone, our key vulnerability is flooding. Even in the construction they talk about raising the homes a bit higher.”
The government has made substantial investments in water management infrastructure to combat the increased risk of flooding due to climate change.
“We are developing a capacity to be able to address larger volumes of water faster because the intensity of water has changed, storage areas are being reduced, because as we widen roads we have less storage,” Dr. Jagdeo noted.

He announced the installation of “19 pump stations with 39 installed pumps and 40 mobile pumps,” demonstrating the government’s commitment to protecting citizens from flood risks.
In addition to these measures, several new canals are being constructed across various regions, further enhancing the country’s drainage capabilities and flood resilience.
While the government pushes forward with these initiatives, it has also called on international partners in the oil and gas sector to increase their support for Guyana’s climate efforts. Dr. Jagdeo expressed his dissatisfaction with the climate-related contributions of ExxonMobil, one of the major operators in Guyana’s offshore oil fields.

“Exxon is not doing enough on the climate side of Guyana,” the Vice President stated firmly. “I have been critical of this in the last meeting; I do not think they are doing enough in Guyana on the climate side.”
However, Dr. Jagdeo noted more positive engagement from other industry players, stating, “Also the Chinese company, Hess, we have had a great deal with Hess.” This highlights the government’s ongoing efforts to ensure that all partners contribute meaningfully to Guyana’s sustainable development.

One area of particular concern is the reluctance of some oil companies to purchase Guyana’s carbon credits, an issue the government continues to address in its negotiations with industry partners.
The Ministry of Natural Resources and the Environmental Protection Agency continue to work closely with all stakeholders to ensure that Guyana’s development trajectory aligns with its climate goals.

Building on these domestic initiatives, Guyana has also made significant strides in the global carbon market. In a groundbreaking move, the country recently became the first to make a Paris Agreement Corresponding Adjustment for ART-Issued TREES Carbon Credits. This achievement opens new avenues for Guyana in the international carbon credit market, particularly with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

The success of Guyana’s carbon credit programme is evident in its recent transactions. In 2022, the country sold 37.5 million carbon credits for a minimum of US$750 million, to be paid over the period 2022-2032. Additionally, Guyana has obtained 7.14 million 2021 vintage carbon credits from the Architecture for REDD+ Transactions (ART), further solidifying its position as a leader in forest conservation and climate finance initiatives.

On the international stage, President Dr. Irfaan Ali continues to advocate for increased support for forest conservation efforts. During recent international forums, President Ali has called for a structured mechanism to advance monetary support for conservation efforts, emphasising the critical role of forests in combating climate change.
Guyana’s efforts extend beyond its borders, with the government actively collaborating with neighbouring countries to ensure regional conservation goals are met. Vice President Jagdeo has engaged in discussions with Brazilian President Lula, focusing on strategies to fulfil conservation requirements while respecting each country’s forest sovereignty.

As Guyana continues to navigate its dual role as an emerging oil producer and a champion of forest conservation, the government remains committed to pushing for a full compliance market for carbon credits.
The proceeds from carbon credit sales are earmarked for funding sustainable development and low-carbon initiatives that directly benefit local communities, including indigenous peoples who play a crucial role in forest conservation. This strategy aligns with Guyana’s Low Carbon Development Strategy 2030, which seeks to advance gender equality, social inclusion, and sustainable development across all sectors of society.