Guyana has received US$75M for carbon credits under an agreement with Stabroek Block licensee, Hess Corporation. According to the Department of Public Information, the said sum represents the first payment in an agreement that will be worth a minimum of US$750 million up to 2030.
Two further payments of US$37.5 million each will be made during 2023 – one in January and one in July – bringing the total amount available for appropriation in this year’s National Budget to US$150 million.
The payment is a result of the Government of Guyana’s continued recognition of the important role that Guyana’s forests play in not only the development of the country, but in combatting climate change globally. Guided by the ground-breaking Low Carbon Development Strategy (LCDS) 2030, Guyana has set out a vision for monetising the climate and ecosystem services provided by its standing forest, while accelerating the country’s economic development along a low carbon trajectory.
On December 1, 2022, the Architecture for REDD+ Transactions announced the issuance of 33.47 million TREES credit to Guyana for the five-year period from 2016 to 2020. The Architecture for REDD+ Transactions (ART) is a global initiative that seeks to incentivize the reducing of emissions from deforestation and forest degradation (REDD), as well as restore forests and protect intact forests.
On December 2, 2022, the Government of Guyana entered into an agreement with the Hess Corporation for the sale of carbon credits for a minimum of US$750 million between 2022 and 2032.
The first payment from the Hess Corporation to Guyana has been deposited in a US dollar-denominated account held by the Bank of Guyana overseas, for onward transmission to the Consolidated Fund, which will be credited with the Guyana dollar equivalent.