Govt allocated $4.778B in carbon credit funding for Indigenous development in 2024

The Guyana Government distributed a historic $4.778 billion in carbon credit funding for the development of Indigenous communities in 2024, in an initiative spearheaded by Amerindian Affairs Minister Pauline Sukhai with the aim of benefitting 242 communities, including riverine and remote villages.
This funding, part of Guyana’s growing involvement in the global carbon market, served the dual purposes of addressing local development needs and furthering climate change mitigation efforts.

According to Minister Sukhai, $4.743 billion was initially disbursed, and the sum of $35 million was later allocated to small groups which submitted developmental plans to the ministry with the aim of boosting economic activities within the various areas.
“So, we disbursed to Amerindian villages directly $4.7 billion. That’s 2024 total, (and) 242 communities benefitted. Well, we had some new additions, and a total of $35 million in addition to the $4.743 (was) given. These were small settlements that requested support directly. They come within a big village, so the village receives their 15 percent; in this case, 23/26 percent,” the minister explained.
“And so sometimes there are clusters of settlers who also request. So, this year, we have made accommodation to give Five Star, Big Creek, Fitzburg and 47 Miles some additional sums to supplement what they already received under the Presidential Grant, and that was given under the LCDS carbon credit revenue funds,” Sukhai detailed.
The funds are disbursed through a Village Council system, wherein the funds for each village are deposited into a special bank account owned by that village, and the Community Council oversees how the funds are spent. Spending is done in accordance with a sustainable development plan established through local consultations.
The funds are spent based on collective decisions made by the village, with a Financial Oversight Committee ensuring proper usage of the funds. However, challenges arose in regard to management of the funds, particularly in regard to accountability.
Sukhai disclosed that concerns have been raised in regard to instances when the Toshaos may retain control of these funds without providing proper transparency or oversight. This, she said, has led to internal disputes over usage of the funds, as Village Councils sometimes find themselves unaware of financial decisions made by the Toshaos.
“Yes! We have had instances where we have heard, with no tangible evidence, that ‘Toshao is keeping the money and not giving it to the treasurer’. That’s like a recurrent complaint: that Toshao is keeping the money and doesn’t hand it over to the treasurer,” she acknowledged.
“There’s a little bit of gray area there that maybe we’ll have to look at later on; because Toshao is a signatory to the bank account, (I’m) not sure the treasurer is, and maybe that is why Toshao will tend to want to hold on to the money. But the decision on spending has to be collective, based on the plan,” Minister Sukhai explained.
Despite these challenges, she disclosed, the initiative emphasises the importance of community-driven decision-making and the need for stringent oversight. As such, the Amerindian Affairs Ministry has pledged to continue offering guidance on best practices for financial management, including improved reporting mechanisms and the formation of clear protocols for fund usage.
“So, we’ve had cases where we’ve had to provide guidance, and also to advise on how they should operationalize the system of expending the funds: the decisions to expend the tranche and the reporting to the oversight; the sharing of information. Because it gets a little bit cumbersome when you do find out that, yes, Toshao spent the money. He went and he bought the materials, and he didn’t account for it,” the minister explained.
“So, we would resolve that. Of course, there’s been a case in the very early – not in 2024, but in 2023,” Sukhai added.
In 2023, Government signed with global energy giant Hess Corporation a multi-year agreement worth US$750 million, facilitating the sale of $2.5 million in carbon credits to that corporation annually. Those credits are generated by preserving Guyana’s vast rainforests, which serve as critical carbon sinks in the global fight against climate change. This pioneering approach has garnered international acclaim, and positioned Guyana as a leader in sustainable development.
The first payment of US$150 million was received in 2023, and US$22.5 million thereof was disbursed to over 242 Amerindian, hinterland, rural and riverine communities and villages. Population size was a key determining factor in Government’s methodology for the distribution of money earned from this sale of carbon credits, and as result, funds disbursed to recipient communities ranged from $10 million to $35 million.