Guyana’s carbon credits in high demand as airlines pay premium price

Guyana’s growing carbon credit market is gaining international traction, as airlines flock to secure premium-priced credits under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), among others.
Vice President Dr. Bharrat Jagdeo has attributed the premium pricing of Guyana’s forest carbon credits to its internationally recognised conservation track record, noting that the country’s rigorous carbon assessment and forest protection strategies are key drivers of investor confidence.
Additionally, he attributed this success to strong forest protection policies and a robust monitoring system that ensures credibility and premium pricing for the country’s carbon credits.
“Just recently we made a first sale here at prices that are as good as those that we got from Hess and even a bit better when the voluntary markets are one-tenth of that price for forest carbon and I think we’re getting this premium price for forest carbon because of the track record of protection and the robust system we have to ensure that investors get what they pay for, which is not just MRV, a robust MRV system, but on ground probing and assessment of the stock of carbon and the deforestation rates, which are among the lowest in the world,” Dr. Jagdeo explained.
Jagdeo made these remarks during a panel at the Energy and Development on Day One of the Guyana Energy Conference and Supply Chain Expo where he highlighted that approximately 70 percent of the nation’s carbon sink remains intact, reinforcing country’s position as a leader in forest conservation.
According to Vice President, the country is poised to become a pivotal player in the global fight against climate change, offering a sustainable avenue for airlines to offset their carbon footprints while simultaneously boosting the local economy.
He assured that despite the country’s expanding oil and gas industry, Guyana remains committed to maintaining its net-zero status, emphasizing that even at peak oil production levels of 2 million barrels per day, emissions would be significantly outweighed by the carbon sequestration capacity of its forests.
“We would be a net zero country even if we were producing 2 million barrels of oil per day. When you calculate the emissions even at current level of efficiencies of these FPSOs, assuming no improvement in their carbon efficiency, we would still, their total emissions would be just a fraction of the sequestration of carbon that our forest does every year. So, we have no fear about losing that status,” he assured.
Jagdeo further underscored the government’s commitment to forest conservation through stringent environmental laws and a well-established carbon monitoring, reporting, and verification (MRV) system. These measures, he noted, are crucial to maintaining investor confidence and ensuring the continued success of Guyana’s carbon market.
In 2024, Jagdeo told media that the Guyana Government is not in a rush to find new markets and is waiting to get higher prices.
Meanwhile, in June, President Dr. Irfaan Ali had disclosed that since the issuance of these certified credits, the PPP/C Administration has engaged in “commercial discussions” with several major airlines to sell Guyana’s eligible carbon credits for that market.
The Architecture for REDD+ Transactions (ART) had said that the $7.14 million 2021 vintage carbon credits or TREES (The REDD+ Environmental Excellence Standard) credits were issued in recognition of Guyana’s successful efforts to reduce emissions from forest loss and degradation and maintain “one of the world’s most intact tropical forests”.
This year, more than 11 airlines will purchase carbon credits at a rate of $21.70 per ton.