–as gov’t increases funding from 15 % to 26.5 %, President Ali announces

GUYANA’S Indigenous Peoples have been the custodians of the forest for generations, and in recognition of this stewardship, President Dr. Irfaan Ali on Monday announced that the government will be increasing the percentage paid out to indigenous villages from the country’s sale of its carbon credits.

The Head of State made the revelation during his address on Monday at the opening of the 2024 National Toshaos Council (NTC) Conference to thunderous applause from toshaos and village leaders at the Arthur Chung Conference Centre (ACCC).

“We do not want you to get less,” Dr. Ali said as he disclosed that Guyana has earned $US87.5 million this year from the sale of its carbon credits.

The country’s Low-Carbon Development Strategy (LCDS) 2030 commits 15 per cent of all revenues earned from the forest to be paid to Amerindian villages as development investments.

According to the President, this year, Guyana has earned less than it did in 2023, which saw some $US22.5 million being dispersed to 242 villages.

“Because we are a government that cares and loves you; because we are a government that believes in giving more and not less, we have taken a decision to allocate 26.5 per cent of the earnings this year to you,” he said.

This year’s earnings of $US87.5 million would have seen villages receiving less money than they did in 2023, had the government maintained the 15 per cent payout.

“Although the agreement is 15 per cent, we have increased the percentage of this year’s earning to 26.5 per cent, thereby ensuring that you will get no less than what you got last year. You will get $US23 .2 million, or $4.84 billion in your villages; directly transferred to your villages,” President Ali explained.

“Isn’t this love? Isn’t this honour? Isn’t this commitment? Isn’t this belief? We believe in you as much as you believe in us,” the Head of State added.

The LCDS 2030, which is one of the many hallmarks of the People’s Progressive Party/Civic (PPP/C) government, outlines a robust mechanism for the mobilisation of financing that will be accrued from the country’s forest resources.

The LCDS 2030 paved the way for a historic agreement between Hess Corporation and the Government of Guyana, whereby the oil giant opted to purchase about one-third of all Guyana’s credits (issued and anticipated) up to 2030.
The agreement will generate a minimum of US$750 million for Guyana over the coming decade, and represents a major milestone on the journey towards a vision first set out in 2007 by the PPP/C government.

“As a result of this investment, over 800 transformative projects are on the way in villages, which has resulted in growth and development, expansion, building of ecologies, tourism facility, agriculture facility. All of this is ongoing; all of this is ongoing as a result of this investment,” President Ali further pointed out.

Carbon credits, also known as carbon offsets, are permits or tradeable licences that represent the removal or reduction of carbon dioxide or other greenhouse gases made in order to compensate for emissions made elsewhere.

One way to value the carbon-trees store is through the issuance of forest carbon credits by independent verification organisations. Companies can purchase these tradable credits as a way of recognising that carbon stored in forests is one aspect of the solution to achieving a global climate, where one tonne of carbon dioxide has been decreased, avoided, or sequestered for every carbon credit.

Earlier this year, it was announced that the Architecture for REDD+ Transactions (ART) issued 7.14 million 2021 vintage carbon credits to Guyana, marking a groundbreaking achievement in the global fight against climate change.

Simultaneously, the government had announced the world’s first Paris Agreement corresponding adjustment, a significant step reported to the United Nations Framework Convention on Climate Change (UNFCCC).
These developments fulfilled requirements to label the credits as the world’s first eligible for use by airlines towards their targets in the 2024-2026 phase of the International Civil Aviation Organisation (ICAO)’s global emission reduction programme, CORSIA.

The issuance by ART, known as TREES credits, recognises Guyana’s efforts at successfully reducing emissions from forest loss and degradation, while maintaining one of the world’s most intact tropical forests through jurisdictional REDD+ initiatives.

It was later revealed that Guyana has already begun discussions with several commercial airlines to secure a market within the aviation sector for its certified carbon units.

‘NOW A REALITY’

Meanwhile, Derick John, Chairman of the NTC, in his address, noted that in the past, ideas were limited due to the lack of resources and funding. However, the revenue now being generated from the country’s forest has seen Indigenous leaders transforming their visions in tangible developmental projects.

“In the past, we had ideas; we had plans, but we didn’t have resources. Today, we have the resources that aim to support, and that makes us transform those ideas in reality,” John said, adding:

“These resources are very critical. They’re very important, and we need to utilise these resources in a way that will bring benefits, and that will transform the lives of people. Accountability, transparency is very critical.”

John, who hails from Moraikobai, the only indigenous Arawak village found in Region Five (Mahaica-Berbice), urged his colleagues to use the conference as an opportunity to share successful development stories, and address ongoing challenges.

“Use this opportunity to report on how the funds from carbon credit sales have impacted your communities,” he said.

This year’s conference is being held under the theme, ‘Astute Leadership for Amerindian Development’.