GCCI Commends Government of Guyana for Carbon Credit Sale to Hess

The Georgetown Chamber of Commerce and Industry (GCCI) in a release said the body congratulates the Government of Guyana on its recent agreement with Hess Corporation, a consortium partner in Guyana’s offshore oil sector, for the sale of US$750 million worth of carbon credits.

The deal was announced on  2^nd December, 2022. The sale of carbon credits which covers ten years 2022-2032, will see Guyana being compensated for keeping its rainforests intact.

“GCCI understands that the purchase by Hess will be for 2.5 million credits per year for the years 2016-2030. The purchases will occur in the period 2022-2032. GCCI applauds the government for making Guyana the first country to complete the ART process (Architecture for REDD+ Transactions) for generating high-integrity, Paris Agreement-aligned carbon credits that will allow Guyana to access market-based finance to continue to implement forest stewardship strategies.”

On 12^th December 2015 Guyana and 195 other countries signed the United Nations Paris Climate Agreement. The Agreement became effective on 4^th November 2016 with a goal that aims to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.

According to the commerce body, following the 2009 Norway REDD+ agreement and COP27, GCCI sees this second agreement as an indication that highly developed nations are increasingly recognizing the value of forest climate services.

GCCI said it is pleased to note that 30% of the $750 million will be allocated to Indigenous Amerindian communities as outlined in the Low Carbon Development Strategy 2030.

“With rising sea levels, warmer temperatures, and more adverse weather conditions, climate change is evident. In June 2021, Guyana experienced severe flooding in several regions, adversely affecting the agriculture and infrastructure sectors and compromising food security. This agreement assists Guyana in building its resilience to climate change and transitioning to a sustainably stable economy.”