ExxonMobil not doing enough on ‘the climate side’ in Guyana – VP Jagdeo

Vice President Dr. Bharrat Jagdeo was critical of US oil giant ExxonMobil regarding its track record on climate matters in Guyana.
“I’ve been critical of this at the last meeting [with ExxonMobil], I don’t think they’re doing enough in Guyana on the climate side,” Jagdeo told reporters during a press conference on Wednesday, in his capacity as General Secretary of the People’s Progressive Party (PPP).
“Hess has been doing a great deal but the two other co-venturers are not doing enough on the climate,” he added.
ExxonMobil affiliate Esso Exploration and Production Guyana Limited holds 45 per cent interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30 per cent interest and CNOOC Petroleum Guyana Limited holds 25 per cent interest.
ExxonMobil had said last year that it is not keen on buying Guyana’s “high-quality” carbon credits and is, instead, channelling its investment in other areas locally.
“Exxon says they’re investing in carbon capture and storage and therefore, that’s their contribution to the fight against climate change. I’m not defending them, because I think they should do more globally and here. But they have indicated, by the way, that they’re prepared to invest in other things – mangroves and reforestation, and all of that,” Jagdeo had told reporters in October 2023.
Back in December 2022, the Guyana Government signed a historic multi-year agreement for the sale of certified carbon credits to US energy major Hess Corporation to the tune of US$750 million – 15 per cent of which is going directly towards the development of hinterland communities.
This deal came after Guyana was the first country to receive certification of its carbon credits by the Architecture for REDD+ Transactions (ART) on December 1, 2022.
The 33.7 million credits being sold to Hess Corp is just 30 per cent of the carbon sink contained in Guyana’s vast forest. The country’s more than 18 million hectares of forests are estimated to store approximately 20 billion tonnes of carbon dioxide equivalent.
The remaining 70 per cent of Guyana’s carbon credits will be put on the market for future sale agreements.
Providing an update on this on Wednesday, Jagdeo indicated that talks are still ongoing.
A carbon credit is a tradable permit or certificate that allows the holder of the credit the right to emit a stated tonnage of carbon dioxide or an equivalent of another greenhouse gas. Countries and companies that exceed their permitted limits can purchase carbon credits from nations that have low emissions such as Guyana.
President Dr. Irfaan Ali had revealed in June this year that the country was in talks with major international airlines on a potential commercial agreement on carbon credits.