VP Jagdeo announces $100M to support CDCs from carbon credit payment

-Over $9B injected towards Amerindian Development between 2023-2024
-Announces additional support for sports development

The sum of $100 million in carbon credit revenues has been set aside this year, to support Community Development Councils (CDCs), underscoring the government’s commitment to Amerindian and hinterland development.

Vice President, Dr Bharrat Jagdeo, made the announcement when he addressed Amerindian leaders on day two of the National Toshaos Council (NTC) Conference, being held at the Arthur Chung Conference Centre (ACCC).

These CDCs, which are under the purview of the Ministry of Local Government and Regional Development, are supported by the Ministry of Amerindian Affairs and were not part of the 242 villages that benefitted from the $4.7 billion carbon credit funds disbursed last year.

Dr Jagdeo highlighted that several councils have requested to benefit from the allocations this year; however, the government has recognised that it would be unfair for the 242 villages to receive less than what they got in 2023.

“We decided that we will stick with the 242 villages, but we will set aside another $100 million for those communities…Some of them are not villages, they’re run by CDCs, and some are not fully Amerindian, but they will get small grants,” the vice president assured.

He further underscored, “We want to be fair, but we did not want to dilute the amount that you [established villages] got last year.”

The vice president expounded heavily on the benefits of the carbon credit programme, which is facilitated through the Low Carbon Development Strategy (LCDS) 2030, highlighting that within the two years of disbursement, more than $9 billion will be injected into these villages.

The LCDS was initially developed under former President, Dr Jagdeo and was later expanded by the current administration, following national consultations from October 2021 to July 2022. It was agreed by the NTC that 15 per cent of total revenues generated would be directly invested into the economies of these villages.

Guyana entered into a multi-year agreement with global energy giant – Hess Corporation in 2022, which will purchase 30 per cent of the high-quality carbon sequestered by the nation’s trees over ten years.

In 2023, Guyana received its first carbon payment of US$150 million, of which US$22.5 million (GYUD$4.7 billion) was disbursed to 242 villages nationwide. These resources are currently funding around 811 projects catering to sectors such as tourism, agriculture, infrastructure, industrial arts and youth empowerment.

This year, villages will receive a notable increase in their carbon credit allocation totalling $4.84 billion, which according to Dr Jagdeo, will be disbursed by next week. This massive sum represents a 26.5 per cent increase from the initial 15 per cent.

“We reduced the government’s amount that we were going to use for adaptation measures. A lot of them [will be invested] back into Amerindian communities,” the vice president underscored.

Furthermore, there will be additional support for sport development, with every village set to receive an additional $1 million to enhance sport development by improving sporting facilities.

Last year, around 200 villages received support. They have expended monies to improve their facilities thereby empowering youths through sports.

Additionally, he assured that newly elected Toshaos and those reelected will continue to be employed under the part-time job initiative, providing them with an extra stream of income.

Meanwhile, he pointed out that $10 billion has been invested by the government towards improving hinterland roads, while $20 billion be expended to construct four state-of-the-art hospitals in Regions One, Seven, Eight and Nine.  These hospitals will be constructed in the villages of Moruca, Region One; Kamarang, Region Seven, Kato, Region Eight and Lethem, Region Nine.

Government remains steadfast in its endeavor to ensure fairness and unfaltering support to these villages, with face-to-face interactions planned for an entire week.