Guyana inks US$750M agreement with Hess Corporation to protect forests
Guyana has become the first and the only country in the world to boast the Architecture for REDD+ Transactions (ART) credit with the signing of a US$750M agreement with Hess Corporation for the conservation of Guyana’s pristine forest.
A historic agreement was inked earlier today between the Government of Guyana and Hess Corporation that will see a minimum of US$750 over the next decade to preserve the country's vast forests.
Hess Corporation will buy 2.5 million carbon credits annually through the ART (Architecture for REDD+ transactions) registry.
REDD+ (Reducing Emissions from Deforestation and Degradation) is a global conservation body that registers carbon credits through ART.
A carbon credit is a tradeable permit that signifies the removal of specified amounts of carbon from the atmosphere. These credits can be bought and sold on the global market like any other commodity.
Companies and countries are incentivised to fund the preservation of forests such as Guyana’s in attempts to offset their own harmful carbon emissions.
A total of 33.5 million credits amounts to 30% of Guyana’s total carbon credits. This leaves much room for even bigger investments from other countries and companies in Guyana’s forests in the fight against climate change.
Guyana possesses 18.4 million hectares of intact rainforests which cover more than 87 percent of Guyana’s landmass.
The vice president reminded of government’s support for net zero and the removal of subsidies from fossil fuel production and air decarbonisation.
President Dr. Irfaan Ali noted that Guyana has always been a global leader in championing the cause for climate action.
“This has not happened by accident, it took hard work, long hours and strong commitment and as we have said before, our commitment to climate change and to work towards environmental issues and protecting the forest as the main tool in addressing climate change is beyond question.”
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