Govt carefully weighing global events in sale of carbon credits – Ali

…says great interest remains on global market

The Government of Guyana has been carefully weighing global events and developments, and how they may influence the sale of Guyana’s carbon credits, when it decides to go out on the market.
This is according to President Dr Irfaan Ali, when asked by Guyana Times on Tuesday about Guyana’s carbon credits, which were supposed to have gone on the market by July. According to the President, the Government is keeping a close eye on global events and how they will sway the carbon credit market.

“There’s a lot of development globally, in the carbon market. And I think that the unit, led by the Vice President, they’re taking into account all that is happening globally. There’s a lot of changes in the carbon market. There’s now different narrative on fossil fuel as a transition (energy source).”
He assured, however, that there was still great interest in Guyana’s carbon credits, which are a tradable permit that countries can purchase. The Government’s approach to the issue, he said, would be multi-dimensional.
“There’s great interest. I can tell you there’s great interest in Guyana’s carbon. They went out for an expression of interest. So, there’s that analysis that is going on right now, to develop the best. It must be a multi-dimensional approach, from all that I’ve analysed from what we have,” the President said.
“So, it has to be a multi-dimensional approach. And that is where a lot of critical thinking would occur. Because whether you have the direct approach to the market in some instances, or only an integrated approach through the facilitation process. So these are some of the things that we have to address.”

During the Energy Conference and Expo early in the year, Climate Change Advisor Kevin Hogan had announced that the Government planned to put at least eight million carbon credits on the market for sale by July of this year.
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 other nations that have low emissions such as Guyana. Guyana’s 18.4 million hectares of largely pristine forest stores approximately 5.31 gigatons of carbon.
Back in April 2021, President Ali had announced that Guyana had signed a letter of intent with US-based non-profit organisation (NGO), Emergent Finance Accelerated Inc, to market the country’s carbon credits through a credit contract – a deal that could earn the country millions of US dollars.
Last year, Vice President Bharrat Jagdeo had said that Emergent would soon be commencing work towards marketing Guyana’s carbon credits on the world stage. And indeed, the process of seeking proposals has attracted interest on the world market.
Jagdeo has been vocal about the need for the developed world to create the incentives for carbon credit products from the developing world, as the fate of the world and carbon emission targets hang in the balance.
“This is only right and just, given that the world pays nearly US$90 per ton for carbon in another part of the world. And they’re unwilling now, to even guarantee a price of US$10 for forest carbon. And a ton of carbon from whatever its source, or wherever in the world it’s emitted, has the same impact on global warming,” Jagdeo said previously.
“So, our argument is that the developed world has to start creating incentives and markets for products supplied by the developing world. They can’t want to treat developing world mitigation solutions as though it could be solved through philanthropy or goodwill, as they did in COP26 when there was just a declaration without allocation of resources, to say deforestation must end by 2030,” he had explained.
Jagdeo had noted that deforestation and land use change contribute 16 per cent of total greenhouse gases. As such, he further noted that the world would never achieve net zero if these primary sources of emissions are not addressed. (G3)