ExxonMobil which leads a consortium in the operation of Guyana’s oil-rich Stabroek Block has shown limited interest in purchasing Guyana’s certified carbon credits. This was confirmed by Vice President, Dr. Bharrat Jagdeo during a recent press conference.
When asked about Exxon’s potential involvement in acquiring a portion of Guyana’s remaining 70% certified carbon credits, Jagdeo mentioned that the company had not displayed enthusiasm for such a move. This decision comes despite Guyana’s pioneering achievement in receiving certification for its carbon credits from the Architecture for REDD+ Transactions (ART) in December 2022.
In December of that year, the Guyana Government and energy major, Hess Corporation, which is also a partner in the Stabroek Block, signed a historic multi-year agreement valued at US$750 million. This landmark deal marked Guyana as the first country to achieve certification for its carbon credits, signifying its potential in the global carbon market.
The agreement with Hess Corporation entailed the sale of 33.7 million carbon credits, equivalent to 30% of the carbon stored in Guyana’s extensive forests. These forests, spanning over 18 million hectares, are estimated to contain an astonishing 20 billion tonnes of carbon dioxide equivalent. The remaining 70% of Guyana’s carbon credits remain available for future sale agreements.
Jagdeo during the press briefing said, “We raised this matter with them (Exxon). They have not been positively inclined to do that.”
Vice President Jagdeo also emphasized that the Guyanese Government is taking a cautious approach to determine the optimal carbon offset market to yield the highest value for Guyana’s credits. He said although ExxonMobil initially expressed interest in trading carbon credits as part of its climate change management efforts, recent indications from the company suggest uncertainty about this potential venture.
However, Jagdeo swiftly dismissed concerns about the quality of Guyana’s carbon credits due to Exxon’s reluctance. He underlined that Guyana’s carbon credits have garnered global recognition for their exceptional quality. Furthermore, he once again shed light on Hess, which is a significant investor in the Stabroek Block offshore Guyana, where exploration and production activities are ongoing, noting that they have already committed to the purchase of carbon credits. This sale represented the largest purchase of carbon credits worldwide, surpassing even countries with substantially larger forests.
The Vice President made it clear that Guyana is not dependent on Exxon’s participation and is actively seeking the best possible deal for its carbon credits. As Guyana emerges as a leading trader in the global forest carbon market, he stated that the government is exploring opportunities to increase earnings from these transactions.
“We’re not begging Exxon to buy our credit. Our credit is competitive and we’re looking for the best deal. So, if Exxon changes its mind and comes along with an offer that is good and outcompetes any other offer, they could participate. If they don’t, then we will go with the higher offer. We’re not begging Exxon to buy our carbon,” he added.
Further, Jagdeo explained that the market value of carbon credits is influenced by their usability, whether for voluntary offsets or compliance purposes.
The Vice President emphasized Guyana’s strategic position in the evolving carbon market landscape, noting that it remains focused on securing the best deals and maximizing the value of its high-quality carbon credits.
