240 Indigenous communities allocated over US$22M from carbon credit sales

Some 240 Indigenous communities will receive payments ranging from $10 million to $35 million, courtesy of the first set of payments from the sale of Guyana’s forest carbon credits to Hess Corporation.
This was announced during a meeting at the Arthur Chung Conference Center (ACCC) between Vice President Bharrat Jagdeo, other Government officials and Indigenous leaders from these communities.

A total of $4.7 billion (US$22.5 million), which is 15 per cent of US$150 million, is earmarked for distribution to these villages. In fact, this number may increase as other agreements for the sale of the remainder of Guyana’s credits are concluded.
Jagdeo explained to the Toshaos that a formula would be applied to ensure that the proceeds from the carbon credit sales were distributed equitably and every village benefited. He revealed that this money would soon be paid into a bank account. But to access it, villages must have village development plans and a finance committee.
“Based on the application of the formula based on population and size, you’re going to see how much the communities are getting. Ranging from $10 million to some communities, their share of the 15 per cent this year will be $35 million. So, a place like Aishalton will get in their bank account $35 million. And the smaller communities will get $10 million.
“You can’t draw down this money until you name your finance committee and complete your village development plan (which) must be endorsed by the village and share the minutes of the meeting in which the village endorsed the development plan,” Jagdeo further explained.
The Vice President meanwhile made mention of a further $3 billion which the Government had allocated in a supplementary paper last year. But again, financial transparency and ensuring that villages have their plans ready will be important prerequisites to accessing this money.
“The last time you came here, the President said we’re going to develop $3 billion based on the initiatives you had. So, a number of people submitted much more than the $3 billion. Ten times more. So today, I want us to settle on the programme for the $3 billion, so you can get that. That’s money sitting, waiting to be spent on the communities.

“But we can’t move forward, because we have not settled the priorities as yet. And we want to make sure every community gets something from the $3 billion; that’s separate from this money we’re talking about today,” Jagdeo said.
He talked about other investments the Government was making in hinterland communities, such as the $5 billion set aside for hinterland roads and $3 billion which the Guyana Geology and Mines Commission (GGMC) will also be contributing to hinterland roads.
“This year’s budget alone. The budget was just passed. If you look at our expenditure on health, on education, on roads in the hinterland, it’s going to be about $35 billion… $5 billion on hinterland roads. This is money I’m talking about that is not part of the money you’re getting here today,” the VP said.
It is understood that the first tranche will come from Guyana’s carbon credit sales to Hess Corporation, as per the 10-year agreement signed last year for the purchase of 37.5 million credits at US$750 million. Vice President Jagdeo has said that the Indigenous communities will get 15 per cent, which they will spend according to their village development plans.
During Wednesday’s energy conference and expo, the Vice President had expressed hope that the Indigenous communities would spend their funds on income-generating ventures. According to Jagdeo, it is preferred if the money is spent in the social sectors, job creation and/or on food security efforts. And in a subsequent press release from the Department of Environment and Climate Change, the modalities of distributing the monies were explained.
“At today’s meeting, Toshaos started the process of establishing dedicated bank accounts for
the receipt of all carbon credit revenues. These revenues will become accessible to villages
and communities after village-led processes are completed to produce Village Plans in
accordance with the Amerindian Act and the LCDS (Chapter Two),” the Department said.
“This is described in more detail… in the LCDS 2030, but in summary, access to finance can commence after villagers have met to discuss their priorities and proof is provided that the village has approved priorities via a vote of majority of those present at the village meetings.”
It was also revealed that the total initial money received from the carbon credit agreement with Hess would total US$150 million by the end of 2023 – with US$112.5 million already received and a further US$37.5 million to come in July 2023. (G3)