GEORGETOWN, Guyana, The Guyana government says it has received its first payment for carbon credits under the agreement with the US oil company Hess Corporation making a payment of US$75 million under the deal that will be worth a minimum of US$750 million up to 2030.
A government statement said two further payments of US$37.5 million each would be made during 2023, bringing the total amount available for appropriation in this year’s National Budget to US$150 million.
The statement said the payment is a result of the government’s continued recognition of the vital role that Guyana’s forests play in not only the development of the country but in combatting climate change globally.
It said that guided by the ground-breaking Low Carbon Development Strategy (LCDS) 2030, Guyana has set out a vision for monetizing the climate and ecosystem services provided by our standing forest while accelerating the country’s economic development along a low carbon trajectory.
On December 1, last year, the Architecture for REDD+ Transactions announced the issuance of 33.47 million TREES credit to Guyana for the five years from 2016 to 2020. The Architecture for REDD+ Transactions (ART) is a global initiative that seeks to incentivize reducing emissions from deforestation and forest degradation (REDD), as well as restore forests and protect intact forests.
Last December, Guyana 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
“These payments have been deposited in a US dollar-denominated account held by the Bank of Guyana overseas for onward transmission to the Consolidated Fund, which will be credited with the Guyana dollar equivalent.
“In keeping with the commitments made in the LCDS 2030 and Resolution No. 45, adopted by the National Assembly on August 8, 2022, the National Assembly, including through its Committees, will have oversight of the investment of all national revenues received from forest climate markets and managed via the Consolidated Fund through the budgetary process,” the statement added.
According to the statement, the allocation of 15 percent to community/village-led programs for Indigenous Peoples and Local Communities (IPLCs) as set out in Village Sustainability Plans or equivalent, put together by communities themselves, and the remaining 85 percent will be allocated to national priorities outlined in the LCDS 2030.
The statement said that in keeping with the established budgetary process enshrined in law, the Minister of Finance would request the National Assembly to approve withdrawals from the Consolidated Fund.