Indigenous communities to gain more from carbon emissions

– President Ali announced as the government increased funding from 15% to 26.5%

Guyana’s indigenous peoples have been the custodians of the forests for generations, and in recognition of their stewardship, President Dr. Irfaan Ali announced on Monday that the government will increase the percentage paid to indigenous villages from the sale of carbon credits by the state.

The Head of State disclosed this on Monday while speaking at the opening ceremony of the 2024 National Toshoas Council (NTC) Conference held at the Arthur Chung Conference Centre (ACCC) and made the decision amidst loud applause from Toshoas and village leaders.

“We don’t want you to get less,” said Dr. Ali, who disclosed that Guyana has earned $87.5 million this year from the sale of carbon credits.

The country’s 2030 Low Carbon Development Strategy (LCDS) commits to paying 15% of forest revenues to Amerindian villages as development investments.

According to the President, Guyana’s revenues this year are lower than in 2023, when approximately $22.5 million was distributed to 242 villages.

“Because we are a government that cares and loves you; because we are a government that believes in giving more, not less, we have decided to distribute 26.5 percent of this year’s revenue to you,” he said.

If the government maintains the 15% spending ratio, the village’s revenue this year will be $87.5 million, and the village will receive less money than in 2023.

“While the agreement stipulated 15%, we have increased this year’s revenue share to 26.5%, thus ensuring that you receive no less than last year’s level. You will receive $23.2 million, or $4.84 billion, directly transferred to your villages,” President Ali explained.

“Isn’t this love? Isn’t this honor? Isn’t this commitment? Isn’t this faith? We believe in you, just as you believe in us,” the head of state added.

LCDS 2030 is one of the many hallmarks of the People’s Progressive Party/Civic Party (PPP/C) government, outlining a robust mechanism to mobilize funds derived from the country’s forest resources.

LCDS 2030 paves the way for a historic agreement between Hess and the Government of Guyana, under which the oil giant has opted to purchase approximately one-third of all of Guyana’s carbon credits (issued and expected) by 2030.
The agreement will generate at least $750 million in revenue for Guyana over the next decade and is a major milestone on the road to the PPP/C government’s vision first outlined in 2007.

“Thanks to this investment, more than 800 transformation projects are being implemented in the villages, which promote growth and development, expansion, ecological construction, tourism facilities, agricultural facilities. All of this is ongoing; all of this is a result of this investment,” President Ali further noted.

A carbon credit (also called a carbon offset) is a permit or tradable permit that represents the removal or reduction of carbon dioxide or other greenhouse gases to compensate for emissions elsewhere.

One way to assess the carbon storage of trees is through the issuance of forest carbon credits by independent verifiers. Companies can buy these tradable credits as a way of recognizing that the carbon stored by forests is part of the global climate solution, with each carbon credit issued reducing, avoiding or sequestering one tonne of carbon dioxide.

Earlier this year, the REDD+ Trading Architecture (ART) announced that it had issued 7.14 million carbon credits to Guyana for 2021, marking a breakthrough achievement in the global fight against climate change.

At the same time, the government also announced the world’s first corresponding adjustments to the Paris Agreement, which is an important step towards the United Nations Framework Convention on Climate Change.
These developments meet requirements to make these credits the first in the world that airlines can use to meet the 2024-2026 targets of CORSIA, the International Civil Aviation Organization’s (ICAO) global emissions reductions program.

The TREES credits issued by ART recognize Guyana’s efforts to successfully reduce emissions from forest loss and degradation, while maintaining one of the world’s most intact tropical forests through REDD+ initiatives within the jurisdiction.

It was later revealed that Guyana has already started discussions with several commercial airlines to secure a place for its certified carbon units in the aviation sector.

“It’s now a reality”

Meanwhile, NTC Chairman Derek John said in his speech that in the past, people’s ideas were limited due to lack of resources and funds. However, now the income from the country’s forests has allowed indigenous leaders to transform their visions into practical development projects.

“In the past, we had ideas; we had plans, but we didn’t have the resources. Today, we have resources designed to support us, which enables us to turn these ideas into reality,” John said, adding:

“These resources are critical. They are so important, and we need to use them in a way that delivers benefit and makes a difference in people’s lives. Accountability and transparency are critical.”

John, who hails from Molekobai, the only indigenous Arawak village in Region Five (Mahaica-Bebis), urged his colleagues to use the opportunity of the conference to share successful development stories and address ongoing challenges.

“Take advantage of this opportunity to report on the impact that funds from carbon credit sales have on your community,” he said.

The theme of this year’s conference is “Smart Leadership for American Indian Development.”