By Cheflin Paulus & Naomi Parris

DESPITE their burgeoning oil industries, Guyana and Suriname aim to achieve equilibrium as global efforts to transition away from fossil fuels intensify.

How so? Carbon credits. The South American neighbours are among the world’s most forested countries.
With virgin forests, Suriname is among three nations that are carbon negative, while Guyana is among five countries that are carbon neutral (net-zero).

Suriname’s Ministry of Spatial Planning and Environment started more than two years ago with concrete plans to sell carbon credits.
The trade will be an important step for the country towards sustainable development and the use of its natural resources in a responsible way, according to Minister Marciano Dasai, who is in charge of the Ministry of Environment.

WHAT ARE CARBON CREDITS?
Carbon credits, also known as carbon allowances, work like permission slips for emissions. When a company buys a carbon credit, usually from a government, they gain permission to generate one ton of CO2 emissions.
The developments around the carbon credit event can enable Suriname to generate financial resources through its role in reducing global CO2 emissions. In 2024, the media has said several times that Suriname is the greenest country on earth with more than 90 per cent forest cover.

Suriname’s President, Chandrikapersad Santokhi, also emphasised that during a government press conference in 2024. The head of state indicated that Suriname must take steps to actually earn with carbon credits.

Dasai also announced during a press conference in November 2024 that Suriname could possibly receive US$80 million for carbon credits in 2025. This would mean a significant financial injection for the country. In general, there is a growing awareness in Suriname about the importance of Carbon Credits and sustainable development. The government and various organisations are working together to increase this awareness.

During the last Suriname Oil and Gas Summit, which was organised on a grand scale between June 4 and 7, 2024, many countries and organisations participated in Hotel Torarica. There was a lot of discussion about oil and gas developments in Suriname. This is mainly because the country is on the eve of a flourishing oil and gas sector in which these two raw materials will be extracted on a large scale off the Surinamese coast. This is also the case with neighboring country Guyana, which is currently experiencing good developments in this sector.

During a press moment in November 2024, the Surinamese government also indicated that it attaches great importance to the sustainable development of the country. Suriname has been actively involved at an international level, including at the AOSIS (Alliance of Small Island States), where the country shared its expertise in the field of carbon credits. It is clear that Suriname is taking steps to strengthen its role in global efforts against climate change and at the same time seize economic opportunities. The link between carbon credits in Suriname and climate change is closely linked to the country’s role in global efforts to reduce greenhouse gas emissions.

Suriname has a vast rainforest, which plays a crucial role in absorbing CO2 from the atmosphere. This makes the country an important player in the fight against climate change. By preserving these forests, Suriname can generate carbon credits, which can then be sold to companies or countries that want to offset their own CO2 emissions, says Minister Dasai.
The sale of carbon credits enables Suriname to generate financial resources for the preservation of its forests and other sustainable development projects. This contributes to the reduction of global CO2 emissions, because Suriname’s forests continue to function as important CO2 storage sites.

The income from the sale of carbon credits can be invested in sustainable development projects in Suriname, such as renewable energy, sustainable agriculture and forest management.

This helps Suriname to develop a more sustainable economy and at the same time contribute to the global efforts to combat climate change. Suriname works together with international organisations and countries to strengthen its role in the carbon market and ensure that its carbon credit projects meet international standards, according to Minister Dasai.
Carbon credits also enable Suriname to use its valuable natural resources to combat climate change and at the same time promote economic and social development.

Hydrogeologist Oclaya Verwey states that Suriname must also be attuned to international developments regarding climate change. She indicates that the time is now ripe to take concrete steps for investments in renewable or clean energy. According to the scientist, a good example is the introduction of solar panel farms, as is now the case in many countries. She states that there is actually no time to lose because climate change is already a fact
Verwey emphasises that it is also good that governments and other interested parties in Suriname respond to the awareness of global climate change. According to the expert, measures must be taken to prevent the impact of climate change from becoming greater than it already is. She states that the consequences of climate change can already be clearly observed in the Surinamese climate.
By contributing to reduced greenhouse gas emissions and investing in greener ways of generating energy, Suriname can make a significant contribution to climate change, according to the Ministry of Spacial planning.

HOW DOES THE CARBON MARKET WORK?
With climate change a growing threat, economists came up with the idea of trading the right to pollute, creating a financial incentive to curb emissions.
This is where the selling/ trading of carbon credits began.
The world economic forum explains that policy makers have three options to reduce greenhouse gas emissions. The first is to set a specific limit that a company cannot exceed.
The second option is to introduce a carbon tax where the company pays for CO2 they produce.
In this regard, businesses that can reduce emissions will invest in cleaner options as long as it is cheaper than paying the tax.

The third option is to implement an emission trading scheme – to create a carbon market.
The idea is to pay for emission reductions elsewhere rather than invest in the country of operation.
This is how Hess, an American -based oil and gas company, to invest in emission reductions in Guyana, where the costs of implementing such environmental measures are lower compared to their home country. By purchasing these carbon credits, Hess can offset its emissions, supporting global climate goals while benefitting from the cost-effective emission reduction opportunities available in Guyana

Guyana has established its own unique mechanism, through the creation of one of the first Low-Carbon Development Strategies in the world, which enabled it to enter a voluntary market for the sale of carbon credits. The Architecture for REDD+ Transactions (ART) had issued 7.14 million vintage carbon credits to Guyana, marking a ground-breaking achievement in the global fight against climate change.

Simultaneously, the Government of Guyana 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.
“For Guyana, anything that supports market development, particularly in forests and biodiversity credits, is something we support. Certification is key to maintaining high-quality forest carbon. We hope credible

organisations will certify carbon before it enters the market. Without proper certification, any country could introduce substandard products, undermining the market. In our case, we use the ART-TREES certification process, which is robust, and ensures our carbon is of the highest quality,” Guyana’s Vice President Dr. Bharrat Jagdeo said following last November’s United Nations Climate Change Conference (COP29).

NOT WITH OUT ITS CHALLENGES: FAIR PRICING
In Azerbaijan, world leaders agreed on the final building blocks to set out how carbon markets will operate.
Though a notable achievement, there are still concerns about how forested countries like Guyana will navigate the market.
“We have to be vigilant; we have to be vigilant on the safeguards that are required to ensure that the carbon credits that are entering the market are quality credits,” Global Ambassador for the United Nations Framework Convention on Climate Change (UNFCCC) and the Chief Executive Officer for the Caribbean Climate-Smart Accelerator (CCSA), Racquel Moses, told a press briefing following the conclusion of COP29.

“…fair pricing goes hand-in-hand with the quality of the credits; I would advocate for us looking at the opportunities that exist, [for] us to work together to create an entity in the global south funded by the global north to build our capacity in assessing these carbon credits and ensuring that there is fairness in how they are determined, and that there’s increasing rigour, but that that rigour is not overly onerous, so that it makes it more difficult for us to sell our carbon credits.”

ONLY THE BEGINNING: MONEY FOR PLANTS AND ANIMALS
In July of this year, Guyana plans to host a summit for a new global biodiversity alliance it is leading.
The idea is to bring like-minded players to a table to create a framework, allowing countries like Guyana to earn more from its biodiversity.

Simply put, Guyana is looking to earn biodiversity credits, similar to that of which the country earns for its forest.
“A dollar invested in Guyana is a much greener dollar invested somewhere else and that is competitiveness, ladies and gentlemen,” former Colombian President Ivan Duque said in February at the country’s energy conference and supply chain expo, urging energy players to also examine opportunities in Guyana and the wider Caribbean’s ‘green power’ (forest).
“We want to set the narrative on creating the benchmark for biodiversity, creating a framework and working model on biodiversity, making economic assessments …developing biodiversity financing mechanism,” Guyana’s President Dr. Irfaan Ali said too.

In December thirty-nine Guyanese experts, along with 17 from overseas, conducted an expedition in the Acarai-Corentyne Corridor, located in southern Guyana and found new species of plants and animals.
A location that is believed to be one of the country’s most remote locations that has not been scientifically documented.
(“This story was published with the support of the Caribbean Climate Justice Journalism Fellowship, which is a joint venture of Climate Tracker and Open Society Foundations)