Guyana earns US$237.5M from carbon credits sale between 2022-2024

…$41.1B in carbon credit earnings projected for 2025

Two years after the signing of the US$750 million, 10-year carbon credit deal with Hess Corporation, Guyana has earned US$237.5 million from this deal as of 2024-year end; almost $10 billion of which went to indigenous communities.
According to Finance Minister Dr Ashni Singh during the reading of the 2025 budget, $9.5 billion from the US$237.5 million earned was distributed among indigenous communities, in keeping with the People’s Progressive Party/Civic (PPP/C) Government’s commitments.
“Mr Speaker, importantly, we have committed to transfer at least 15 per cent of the financial resources earned under LCDS (Low Carbon Development Strategy) 2030 to our Amerindian brothers and sisters, to finance the implementation of Village Sustainability Plans (VSPs) across their 242 villages,” Dr Singh revealed.

“These villages have received over $9.5 billion in revenues from carbon credits over the past two years, representing 19 per cent of the earnings received to date. These transfers have funded over 800 projects across the hinterland in the last two years, with villages choosing to invest in agriculture, tourism, transport, education, and many other areas,” he added
The money from the agreement, which was signed within the framework of the LCDS 2030, has also helped fund a range of climate adaptation projects including the construction of Hope like canals in Regions Three, Five, and Six, at a total cost of $23 billion.
Additionally, $9.3 billion from the funds collected from LCDS 2030 and 2009, were instrumental in rehabilitating over 40 sluices and drainage structures, and purchasing equipment to maintain these. Meanwhile, $15.1 billion was used to install 33 megawatts (MW) of solar power in Berbice, Essequibo, and Linden.
Moving forward, the Government expects that the sale of carbon credits will generate an estimated $41.1 billion this year. The Finance Minister assured that a further transfer from the carbon credits to the indigenous population will be done this year.
“Under the LCDS 2030 we committed to transfer to Amerindian villages, 15 per cent of the proceeds of the sale of our carbon credits, to finance the implementation of Village Sustainability Plans (VSPs).”
“In 2023, we transferred 15 per cent and, in 2024, 26.5 per cent, which resulted in over $9.5 billion being transferred to date. A further transfer is expected from our carbon credits earnings in 2025,” he said.

In last year alone, the Guyana Government distributed a historic $4.778 billion in carbon credit funding for the development of Indigenous communities, 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.
Minister Sukhai had explained that $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.
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.
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.
Last year, the South-Central Rupununi, Region Nine village of Quiko became one of the many success stories, turning a $9 million carbon credit allocation into a four-acre savannah farm with crops such as sweet peppers, bora, eschalot, and watermelon.