PSC says carbon credits deal demonstrates Guyana’s commitment to global climate action

The Private Sector Commission (PSC) on Saturday commended the Ali-led Administration for its “visionary leadership,” which resulted in Guyana becoming the first country to be issued carbon credits for successfully preventing forest loss and degradation under the REDD+ initiative.

“The Commission strongly believes that the deal signed on December 2, 2022, between the Government and Hess Corporation for Guyana to be paid a minimum of US$750 million between 2016 and 2030, is a demonstration of Guyana’s commitment towards global climate action,” the PSC said.

The Commission added, “the deal shows what corporations like Hess, a partner in the Stabroek Block Offshore Guyana, can do to demonstrate leadership and action in the fight against climate change.”

To this end, the PSC envisions that the funds from this historic agreement will realise the objectives outlined in the Low Carbon Development Strategy 2030 (LCDS).

Guyana on Friday inked a US$750 sale agreement with Hess Corporation for the conservation of Guyana’s pristine forest.

Hess Corporation will buy 2.5 million carbon credits annually through the Architecture for REDD+ transactions (ART) registry.

Reducing Emissions from Deforestation and Degradation (REDD+) is a global conservation body that registers carbon credits through ART.

A carbon credit is a tradeable permit to remove 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 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.