Amerindian communities to begin receiving funds from sale of carbon credits by next week
– Communities to receive up to $35 million, and no less than $10 million
– Strict mechanisms in place to ensure accountability, transparency
Commencing next week, 240 Amerindian and hinterland communities across Guyana will begin receiving monies earned from the sale of Guyana’s carbon credits.
This follows the historic agreement signed with Hess Corporation for Guyana’s carbon credits in 2022 that will see the country earning US$750 million for its forest.
Vice President, Dr Bharrat Jagdeo while apprising Toshaos on the disbursement process at the Arthur Chung Conference Centre Wednesday, revealed that each community will be receiving up to $35 million and no less than $10 million.
A total of $4.6 billion (US$22 million), which represents 15 per cent of Hess’ payment for Guyana’s carbon credits, will be disbursed in the various communities.
Dr Jagdeo informed Toshaos that following consultations with the National Toshaos’ Council (NTC) and other parties, it was determined that population size is key in the determination of the disbursement process.
“It would not have been adequate just to discuss this with the NTC executive, that is why we wanted a larger group here, so that we can talk to you and explain to you the proposals that we have,” the Vice President highlighted.
Dr Jagdeo added that a strict mechanism must be followed to ensure accountability and transparency regarding how the funds will be expended.
Each community has already created separate bank accounts, allowing funds to be accounted for.
The vice president explained, “Although we’re putting the money in your account, you cannot draw down this money until you give it to your finance committee and you complete your village development plan. You have to complete that and that plan must be done by the village, would have to have an endorsement by the village and you’ll have to share with us the minutes of the meeting, in which the village endorses the plan.
He told said the money should be expended for the advancement of the communities in areas such as social welfare, food security and job creation.
“But of course, you will determine that in each of these villages,” Dr Jagdeo pointed out.
Meanwhile, during discussions earlier on Wednesday, at the International Energy Conference and Expo, the vice president noted that at the government level, the funds would have to go through a separate audit, with the possibility of international verification.
“The transparency in the use of the funds will be maintained, but we’re not confusing this with oil and gas, the natural resources fund. That fund is separate,” he explained.
The major deal between the government and Hess, which was signed in December last, will see Guyana issuing about 7.5 million credits per year, on average from 2021 to 2032 – so the Hess deal is for the purchase of about one-third of all Guyana’s credits (issued and anticipated) up to 2032.
But even before the pact was inked, the Dr Mohamed Irfaan Ali – led Administration had committed that 15 per cent of the proceeds from any sale of forest carbon will go to Amerindian communities, in both forested and non-forested areas.
Guyana will receive $187 million, as payment for the ‘legacy period’ (2016-2020). For the period 2021 to 2025, a payment of $250 million is expected; and for 2025 to 2032, $350 million, under the agreement with Hess Corporation.
It must be noted that this dedicated 15 per cent is not all that the Amerindian communities will benefit from. In fact, these parties will be direct beneficiaries of all aspects of the Low Carbon Development Strategy (LCDS) 2030, notably from renewable energy and climate adaptation and mitigation projects.
From consultations with residents, the government will deliver support through a new phase of the Amerindian Development Fund (ADF); support for participation in reducing emissions from deforestation and forest degradation (REDD+) and ART-TREES; as well as the completion of the land titling programme.
The Toshaos from the various communities have welcomed and commended the landmark achievement.
The NTC in a press release following the announcement by ART last year said the intervention will further support the development of sustainable livelihoods and the protection of forests within Amerindian communities.