In an effort to ensure that Indigenous communities continue to benefit generously from the lucrative US$750 million carbon credits deal with Hess Corporation, the Guyana Government will be increasing the share going to these communities in 2024 by over 11 per cent – a move that will see some US$23.2 million going to this communities this year.
When the government signed the historic deal to sell Guyana’s certified carbon credits to Hess, it was with the understanding that 15 per cent of all revenue would go to indigenous communities.
But with Guyana set to earn US$87.5 million this year, a reduction from the US$150 million the country earned in 2023, it could have meant less money for indigenous communities.
In an effort to prevent that, President Dr Irfaan Ali announced that his government will be increasing the indigenous people’s share from carbon credits this year. The Head of State made this revelation during the opening of the National Toshaos Council Conference earlier today at the Arthur Chung Conference Centre.
“…Because we’re a government that cares and loves you, because we are a government that believes in giving more and not less, we have taken a decision to allocate 26.5 per cent of the earnings this year to you.”
“Although the agreement is 15 per cent, we do not want you to get less than what you had. We have increased the percent of this year’s earnings to 26.5 per cent, ensuring you will get no less than what you got last year. You will get US$23.2 million or $4.84 billion in your villages,” President Ali said.
Based on the agreement, Hess will purchase 750 million carbon credits between 2022 and 2032.
Of the US$150 million that was received last year, a total of 242 indigenous villages benefitted from US$22.5 million.
It therefore means that based on the government’s increase in the allocation percentage, Amerindians will get more than ever before this year.
“Under the revised LCDS, the government was able to secure the landmark purchase agreement with Hess. In 2023, US$150 million was received from Hess. And guess what? 15 per cent of this was allocated to 242 indigenous villages, a total of $4.7 billion. US$22.5 million,” the President said.
“As a result of this investment, over 800 transformative projects are on the way in villages, which has resulted in growth and development, expansion, building of eco-lodges, tourist facilities, agriculture facilities, all of this is ongoing as a result of this investment… isn’t this trust? Isn’t this honour? Isn’t this dignity? Isn’t this recognition? Isn’t this belief? We did it because we believe in you. We recognize you. We honour you and… are committed to you,” the Guyanese Leader declared.
