Gov’t commences discussions with commercial airlines for possible carbon credit sale
The government has initiated commercial discussions with players in the aviation industry for the sale of high-quality carbon credits. This was announced by President Dr. Mohamed Irfaan Ali during a press conference on Thursday.
Earlier this year, Guyana achieved a historic milestone by receiving 7.14 million 2021 vintage carbon credits from the Architecture for REDD+ Transactions (ART). This achievement made Guyana the first country to be issued carbon credits eligible for use by airline operators in their efforts to reduce carbon emissions.
Simultaneously, the government announced the world’s first Paris Agreement corresponding adjustment, meeting the United Nations Framework Convention on Climate Change (UNFCCC) requirements.
This process certifies the credits as eligible for use by airlines towards their targets in the 2024-2026 phase of the International Civil Aviation Organization’s (ICAO) CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).
“Not only did we certify, we have commenced commercial discussions and engagements with airlines for the sale of Guyana’s carbon credit for that market,” President Ali said.
Guided by the Low Carbon Development Strategy (LCDS) 2030, Guyana has set out a vision for monetising the climate and ecosystem services provided by its standing forest, while accelerating the country’s economic development along a low-carbon trajectory
On December 1 2022, the Architecture for REDD+ Transactions (ART) announced the issuance of 33.47 million TREES credit to Guyana for the five years from 2016 to 2020.
Subsequently, the government entered into an agreement with Hess Corporation that will see the company purchasing high-quality carbon credits for $750 million.
In 2023, US$150 million was received, representing the first tranche of payments made by Hess of which US$22 million was directly disbursed to 242 indigenous villages nationwide.
This represents 15 per cent of total revenues earned through this mechanism in keeping with the LCDS2030. The remaining 85 per cent are earmarked to fulfil national development and climate resilience and adaptation outlined in the strategy.
Some 811 projects are being implemented in Indigenous communities nationwide funded by carbon credit resources. They are expected to receive a further $2 billion in 2024 as part of the second tranche of payments.
Guyana is committed to combatting climate change and fostering sustainable growth through the LCDS 2030 framework while managing its resources transparently for the benefit of present and future generations.