–climate finance commitments can no longer be postponed
–President Ali makes case for support to further pursue forest conservation, climate mitigation at UN

IF sustainable development goals are to be met, particularly those related to climate change and protecting the environment, the cycle of hope followed by failure to fulfill financial pledges must come to an end.
This was according to Guyana’s President, Dr. Irfaan Ali, during his address to the 79th Session of the General Assembly of the United Nations in New York.

Dr. Ali pointed out that yearly pledges are made at the United Nations Climate Change Conference or Conference of the Parties of the UNFCCC, more commonly known as COP29.

“Each year, we make the annual pilgrimage to COP, filled with hope for tangible outcomes. And each year we are regaled, and renewed [unfulfilled] promises are the order of the day,” he said adding:
“This cycle of hope followed by disappointment cannot continue if the Sustainable Development Goals are to be met. We must break free from this pattern of empty pledges. We must, unequivocally and immediately, fulfill all pledges for the sake of our planet and the future of all its inhabitants.”

President Ali stressed that climate finance commitments can no longer be postponed and focus must also be placed on recognising the forest as an integral part of the climate solution.
The Guyana Head of State related that a global market based mechanism for carbon credits should be put in place.
“Let me tell you about my country, Guyana; a country that is 83,000 square miles, 86 per cent of which is tropical forest. Guyana has the second highest percentage forest cover on earth and one of the lowest deforestation rate. Our forest stores 19.5 gigatons of carbon and sequesters more than 153 million tons annually,” Dr. Ali said.

At the last COP held in Dubai, Guyana had made arguments to advance the carbon market with the hopes that a more structured based mechanism would be established to allow heavily forested countries like Guyana to earn money from its standing trees.
Officials from Guyana had noted that while the country has entered a voluntary market, which will see the country raising, at minimum, US$750 million for preserving its forests, a structured mechanism could create a “greater incentive” for Guyana and other developing countries.

WHAT ARE CARBON MARKETS AND WHY ARE THEY IMPORTANT?
In a nutshell, carbon markets are trading systems in which carbon credits are sold and bought.
Since 2007, Guyana has been lobbying for a structured carbon market-based mechanism to simultaneously preserve its forests and pursue development.
In 2009, the country launched the first Low Carbon Development Strategy (LCDS) from a developing country, setting out a vision for inclusive, sustainable development, while simultaneously maintaining the country’s forests. This paved the way for Guyana to enter a voluntary market.
The country’s first deal was made with Norway, and Guyana was able to earn some US$250 million to keep its forests intact.
Guyana continues to earn money for the greenhouse gases trapped by its standing forests after the Architecture for REDD+ Transactions (ART) issued the world’s first TREES credits to Guyana.
Approximately 26.5 per cent of the potential earnings will be allocated to indigenous communities across the country.
Boasting of Guyana’s successes to preserve its forests, Dr. Ali believes that more can be done to help countries like Guyana do far much more in utilising the forest as a pillar in the fight against climate change.

THE CARBON CREDIT MARKET
During a recent exclusive interview with the Guyana Chronicle, Javier Palummo, the Special Rapporteur on Economic, Social, and Environmental Rights under the Inter-American Commission on Human Rights of the Organisation of American States (OAS), explained that the carbon credit market is a tool aimed at incentivising the reduction of greenhouse gas emissions.

While it is a useful tool, it currently requires a clearer and more equitable structure to ensure that economic benefits do not harm local communities or compromise environmental rights.
He said: “The market must operate under strict human rights safeguards and transparency to avoid the exploitation or displacement of vulnerable groups.”
According to Palummo, a structured and well-regulated market could provide countries with large forested areas, such as those in the Amazon region, with an important source of funding for conservation and the development of climate mitigation projects.

He however, stressed, for this type of mechanism to be effective, it must be implemented with full transparency and safeguards that protect the rights of indigenous communities and other vulnerable groups that depend on natural resources.
In Guyana’s deal with Hess Corporation, 15 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.
According to Palummo, discussing the current carbon market is an issue on the agenda of this year’s COP set to be held in November in Baku, Azerbaijan.

“It is expected that innovative financial mechanisms will be discussed to offer more equitable access to funds for forest preservation, provided that strong monitoring measures are in place and that the active participation of local communities in decision-making is ensured,” the OAS official said.

He is optimistic that this COP could represent an opportunity to reform the carbon credit market, promoting a human rights-based approach and ensuring that economic interests do not compromise environmental integrity or the rights of affected communities.