–Dr. Jagdeo says, points to ‘transparent’ process of allocation, expenditure

GENERAL Secretary of the People’s Progressive Party (PPP) and Guyana’s Vice-President, Dr. Bharrat Jagdeo has assured Guyanese that all funds generated from the sale of the country’s carbon credits will undergo a thorough audit.
Dr. Jagdeo, during a press conference last Thursday, said that the audit will be conducted as part of the process for the allocation and expenditure to ensure that all funds are accounted for.
“At the end of the day, we have to account for all of these funds, and with a separate audit that will go to the Parliament,” Dr. Jagdeo said.

In December 2022, the Architecture for REDD+ Transactions announced the issuance of 33.47 million TREES credit to Guyana for the five-year period from 2016 to 2020.
The Architecture for REDD+ Transactions (ART) is a global initiative that seeks to incentivise the reducing of emissions from deforestation and forest degradation (REDD), as well as restore forests and protect intact forests.
The Government of Guyana, in that same year, entered into an agreement with the Hess Corporation for the sale of carbon credits for a minimum of US$750 million between 2022 and 2032.

Fifteen per cent of the earnings from the initial disbursements was allocated to Indigenous villages across Guyana, while the remaining 85 per cent was allocated to national priorities, such as climate mitigation efforts.
“We decided these funds will come through the budget, but be placed in a special account. So, the money, even now, that we have for adaptation will go into the special account, and then would be subjected to a separate audit. We have not spent all of the first-year allocation as yet. So, I guess the audit will take place as the spending is completed,” Dr. Jagdeo said.

In 2023, the country received US$150 million, and 15 per cent meant that US$22.5 million had been allocated to the 242 Indigenous villages.
Some 800-development projects have been initiated in those communities. There have been initiatives ranging from the promotion of local tourism to enhancing food security.
“Most of these villages [are] just about to complete their project, or they just completed. So, at the end of the day, that will be done. But it’s part of the process; if you look at the document’s outline, you will see all the measures that are in place to safeguard to involve people, at the village level, ensure that the projects are properly managed and that we get the desired outcome and the accountability for the funds is also, ensured through an audit,” Dr. Jagdeo said.
Already, the government has begun preparing to disburse the second round of payments.

Last week, Guyana’s President Dr. Irfaan Ali revealed that the country earned US$87.5 million from its sale of carbon credits for this year.
The government, he noted, would be increasing the percentage paid out to Indigenous villages.

This year’s earnings 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 US$23.2 million, or $4.84 billion in your villages; directly transferred to your villages,” President Ali said, adding:
“We do not want you to get less.”
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.