IMF commends Guyana’s climate strategy, clean energy transition

Senior Director for Climate and Reducing Emissions from Deforestation and Forest Degradation (REDD+) at the Natural Resources Ministry, Pradeepa Bholanath, on Tuesday said that the International Monetary Fund’s (IMF) positive review of Guyana’s forest conservation reflects the country’s integrated approach to long-term development, with macroeconomic stability, climate resilience, clean energy expansion and community-led financing being pursued as connected elements of the country’s growth strategy.
Bholanath’s comments followed the release of the IMF’s concluding statement after its Article IV mission, which commended Guyana’s progress in market-based forest conservation and its transition to a cleaner and more cost-effective energy mix under the Low Carbon Development Strategy (LCDS) 2030.
According to the IMF, the Government’s commitment to strengthening resilience to climate-related risks and protecting biodiversity remains central to its development agenda.

The Fund also highlighted the Gas-to-Energy project, noting that it is expected to significantly reduce Guyana’s reliance on fuel-based electricity generation by 2027. As electricity demand increases, the project is expected to lower energy costs and improve the country’s long-term competitiveness.
The IMF further pointed to initiatives aimed at expanding agricultural production and reducing dependence on imported food. It said these measures are expected to support export diversification while strengthening food security.
Under the Low Carbon Development Strategy (LCDS) 2030, climate-resilient agriculture has been identified as a key adaptation priority. The strategy links investments in drainage and irrigation systems, sea defences and water management to efforts to protect agricultural production from flooding, drought and other climate-related impacts.
The IMF also noted Guyana’s continued expansion of renewable energy, with the country on track to install 50 megawatts (MW) of solar generation capacity by the end of this year.
In Lethem, renewable energy capacity has increased through two hydropower plants with a combined capacity of 2.2MW and a one-MW solar system. More than 60 per cent of the town’s electricity is now generated from renewable sources, while hydropower has displaced the use of more than 20,000 drums of diesel.
LCDS benefit-sharing mechanism
The IMF’s statement also coincides with the ongoing implementation of the LCDS benefit-sharing mechanism for Indigenous communities.
This year, Indigenous villages are expected to receive $2.5 billion under the programme, which allocates 15 per cent of Guyana’s forest earnings to Indigenous communities.
The latest allocation will bring total LCDS funding provided to Indigenous and forested communities to nearly $17 billion. Village Councils are responsible for identifying, approving and implementing projects that address local development priorities using the funds.