…Secretary Blinken lauds Guyana for balancing oil production, climate mitigation
As the Guyana Government continues to push forests as a critical component in the fight against climate change, the country is now turning to the United States to assist with its lobbying efforts.
This was revealed by President Dr Irfaan Ali following a meeting with US Secretary of State, Antony Blinken, on Thursday at State House. The US official traveled to Georgetown with his team for a one-day visit.
Speaking at a joint press conference shortly after the high-level engagement, President Ali pointed out that Guyana and the US share common interests in three important areas, that is, food security, energy security, and climate security.
As the current People’s Progressive Party/Civic (PPP/C) Government works to position Guyana as a global leader in these areas, the Head of State noted that they are looking to expand its partnership with the US.
“We were pleased to share with the US our credentials on the forests and seek the US partnership in promoting forests and ensuring that the forest becomes an important part of the agenda on climate change,” the Guyanese Leader announced.
Nevertheless, President Ali noted that Guyana continues to build its energy sector while at the same time expanding its petroleum production. On this note, he said his government has also redoubled its efforts towards advancing renewable energy in Guyana and ensuring the country meets its target as it relates to decarbonisation.
Meanwhile, these efforts were recognised by Secretary Blinken, who also underscored the importance that the US places on energy security and climate adaptation.
The United States official lauded Guyana for its efforts to fight the climate crisis as an oil-producing nation.
“Guyana will soon be the highest oil-producing country per capita in the world, but it’s also a leader in forest conservation, demonstrating that it’s possible to prioritise climate mitigation and environmental protection while responsibly using fossil fuel resources,” the Secretary of State posited.
With 86 per cent of Guyana’s landmass covered by forest, the country is pegged as a global natural carbon sink. In addition to its rich biodiversity and ecosystem, Guyana’s total forest cover, which spans 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.
Sale of carbon credits
Secretary Blinken further lauded Guyana for the historic deal to sell US$750 million in internationally certified carbon credits to the US-based energy giant, Hess Corporation, over the next decade, as well as for the government’s commitment to reinvest at least 15 per cent of these earnings into the country’s indigenous communities.
“The agreement that Guyana reached with a private corporation I think is of great significance and demonstrates in a very powerful way how Guyana is all at once using responsibly the abundant resources that it now has at hand, while also making investments in the climate future, making investments in transition to renewables. And also, of course, as I heard from the president very clearly, showing a very important and powerful commitment to preserving its forests, which are a resource from which many, many benefit well beyond Guyana,” the Secretary of State noted.
The US Government official outlined that the opportunities are there for other interested private companies to pursue similar agreements in the future.
Already, US oil major, ExxonMobil – which along with its co-venturers is producing oil offshore Guyana – Country Manager, Allistair Routledge, has indicated that trading carbon credits is among the options being considered by the company in its efforts to manage climate change.
During Thursday’s joint press conference, President Ali explained that the Guyana and US Governments are working on setting the tone to create the policy and enabling environment for stakeholders.
“We are both committed to the issue of climate change. We are both committed on the issue of decarbonisation. We are both connected on the targets we set to achieve the results of 2050. Now, we are creating an environment in which the private sector can also participate. Like [with] the example of Hess Corporation… [which has] contributed positively in the climate change equation, but importantly, demonstrating that a model of carbon credit sales from the forests is one that can be an important part in achieving the targets that we set.”
“So, I would say that the US and Guyana are working together on setting the right tone, creating the right policy environment, and supporting the right type of initiative that would – that will create a platform for all stakeholders to be a part of,” the Guyanese Leader outlined.
Gas-to-Energy project
Through efforts like the U.S.-Caribbean Partnership to Address the Climate Crisis 2030, the United States is building on the resilience in the region while supporting a clean energy transition.
According to Secretary Blinken, this is reflected in the US Export-Import (EXIM) Bank’s commitment of US$2 billion to Guyana for the country’s model Gas-to-Energy project that is aimed at cutting emissions by 50 per cent and lower electricity costs.
This project includes the construction of an integrated Natural Gas Liquid (NGL) plant and a 300-megawatt (MW) combined cycle power plant at Wales, West Bank Demerara (WBD).
The multi-billion-dollar transformational project will see gas being piped from the Liza Field in the Stabroek Block to onshore in Wales via pipelines that will be procured, installed, and operated by Exxon to the tune of US$1 billion.
Based on studies conducted, ExxonMobil would be able to produce up to 50 million cubic feet of gas per day for this initiative without impacting oil production activities offshore.
In addition to financial assistance, the Secretary of State pointed out that Guyana can also benefit from the expertise in the US.
“American companies can bring unparalleled expertise, high labor, and environmental standards, and transparency to help power Guyana’s dynamic growth, to advance regional energy security, to deliver tangible benefits to all the people of Guyana,” Secretary Blinken stated. (Vahnu Manikchand)
