2nd Dec 2022
London House Chambers represented the Government of Guyana in a US$750 million sale of some of Guyana’s carbon credits to the Hess Corporation. The major deal between the government and the global energy giant, which was the first of its kind, will see the company purchasing 2.5 million carbon credits annually for the years 2016 to 2030. The multi-year pact was signed between the government and Hess Corporation at the Baridi Benab, State House, Georgetown.
Carbon credits provide financial incentives to preserve forests and biodiversity that are at risk due to the growing economic activities and demand for natural resources. President Ali said while the agreement serves to support Guyana’s efforts to protect its vast forests, resources will also be provided to improve the lives of Guyanese through investment, as part of the Low Carbon Development Strategy (LCDS) 2030.
For context, the LCDS is a framework intended to map the path of a new growth trajectory in a non-polluting way. It outlines how the country’s abundant natural resources can be used to combat global climate change while building the foundation for a sustainable, low-carbon economy.
President Ali said the importance of the forests and their significance in the fight against climate change has consistently been championed by Guyana, particularly by former president and now Vice President, Dr Bharrat Jagdeo. The head of state emphasised that the hallmark agreement clearly shows Guyana providing leadership on a critical issue, which has now gone a step further.
The Architecture for REDD+ Transactions (ART) announced Thursday that it has issued about 33.5 million TREES credits to Guyana, making it the first country worldwide to receive the status.