Guyana remains a staunch advocate for a better price for carbon credits on the world market, with President Dr. Irfaan Ali revealing that the aim remains to push for a US$70 per tonne carbon credit price.
President Ali was at the time participating in a discussion at the University of Guyana, with visiting former British Prime Minister, Tony Blair. In response to a question about balancing development with protection of rainforests, President Ali noted that there currently exists a severe financing gap.
He pointed out that the region requires $2.3 trillion to achieve the essential Sustainable Development Goals by 2030. Guyana, according to President Ali, faces further complications when the underwhelming prices for carbon credits on the world market is considered.
“We are blessed with a lot of natural resources. But if you have a country with a standing forest and there’s no market for the standing forest. The people of that country still have to eat. The people of that country still have to (focus on) development,” President Ali said.
“So, what is very critical, as all the studies would have shown, for us to achieve the transition we want with energy, and for us to achieve the shift in development focus, the carbon price must be US$70 per tonne. It is not even US$7. And that is why the market is so important. We have to fix that fundamentally.”
According to the President, the region as a whole must collaborate in order to fix this fundamental pricing issue. Until this is done, he noted, the question of achieving a balance in developing and protecting the resources will remain prominent.
“Unless we’re able to fix the fundamentals, this question and this balance would continue to confront us. How is it we can get the world to agree that the price for carbon credits, based on what we want to achieve, net zero, must be US$70? Are we willing to make that bold and important decision?”
In December 2022, Guyana signed a contract with Hess Corporation which will see the nation earning US$750 million for 30 per cent of its forest within a ten-year period. In Guyana’s agreement, a rate of US$15 per tonne of carbon was secured and so far, 15 per cent ($4.7 billion) is allocated towards Amerindian development.
Enormous potential
When it comes to Guyana’s rainforest, former PM Blair noted the enormous potential it held to learn from and promote education. Further, he made it clear that Guyana has proven its credibility on the world stage in the climate change fight through its forest conservation efforts… something he called a “rare commodity.”
“I think you’re in a very strong leadership position on this because you are one of the very few countries in the world that actually preserved their rainforests. The President will be able to come to [the upcoming global climate change talks] and speak from a position of credibility. Frankly in the climate debate, that’s quite a rare commodity,” the former PM said.
The upcoming climate change talks in question are a reference to the United Nations Climate Change Conference/ Conference of the Parties of the UNFCCC also known as COP 28, which is being held from November 30 to December 12 in Dubai, United Arab Emirates (UAE).
According to Blair, the credibility Guyana has through its piloting of the Low Carbon Development Strategy (LCDS) will come in handy at the event and may even lead the further development of the strategy.
“We have to create a mechanism whereby the supposed contrast of ‘do you develop or protect the environment?’ is eliminated. And that’s where this LCDS is important because it has worked for you over the years but it can be developed over the next few years if you get the right propulsion from the COP28 to something very, very big,” Blair said.
In addition to its rich biodiversity and ecosystem, Guyana’s total forest cover of some 18.4 million hectares stores more than 19.5 gigatonnes of carbon and removes some 154 million tonnes of carbon dioxide from the atmosphere annually.
