GEORGETOWN, Guyana, CMC – From next week, 240 Amerindian and hinterland communities will begin receiving monies earned from the sale of Guyana’s carbon credits.
The historic agreement signed with Hess Corporation in 2022 will see the country earning US$750 million for its forest, a total of GUY$4.6 billion ( (One Guyana dollar=US$0.004), which represents 15 percent of Hess’ payment for Guyana’s carbon credits, will be disbursed in the various communities for investment in projects there.
Vice President Dr. Bharrat Jagdeo said on Wednesday that each community would receive between GUY$10 million and GUY$35 million.
He disclosed as he addressed Toshaos – elected Amerindian village captains on the disbursement process.
Jagdeo said that a strict mechanism must be followed to ensure accountability and transparency regarding how the funds will be expended.
Each community has already created separate bank accounts, allowing funds to be accounted for.
“Although we’re putting the money in your account, you cannot draw it until you give it to your finance committee and complete your village development plan,” Jagdeo told Toshaos.
“You must complete that, and the village must do that plan. It would have to have an endorsement by the village, and you’ll have to share with us the meeting minutes, in which the village endorses the plan.”
The vice president stressed that the money should be spent on advancing the communities in areas such as social welfare, food security, and job creation.
“But, of course, you will determine that in each of these villages,” he added.
The Toshaos from the various communities welcomed and commended the landmark achievement.
Meanwhile, during discussions earlier on Wednesday at the International Energy Conference and Expo, Jagdeo noted that at the government level, the funds would have to go through a separate audit, with the possibility of international verification.
“The transparency in the use of the funds will be maintained, but we’re not confusing this with oil and gas, the natural resources fund. That fund is separate,” he explained.
The major deal between the government and Hess, signed in December last, will see Guyana issuing about 7.5 million credits annually from 2021 to 2032. So the Hess deal is for purchasing about one-third of all Guyana’s credits (given and anticipated) up to 2032.
The government had committed 15 percent of the proceeds from any sale of forest carbon to Amerindian communities in forested and non-forested areas.
Guyana will receive $187 million as payment for the ‘legacy period’ (2016-2020). For 2021 to 2025, a cost of $250 million is expected, and for 2025 to 2032, $350 million, under the agreement with Hess Corporation.
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