The National Assembly on Monday approved $360 million for the payment of Guyana’s verification fee for the sale of its carbon credits, to the Architecture for REDD+ Transactions (ART).
Minister of Natural Resources, Vickram Bharrat told the National Assembly that
the approved sum will cater specifically to the payments Guyana will be receiving for the period 2016 to 2020.
He explained, “In order for countries to sell carbon credits, it must be validated, it must be checked.
“We are using ART to verify our carbon credit, otherwise, we cannot put it into the market… nobody will buy carbon credits if it is not verified,” Minister Bharrat explained.
The Minister reminded the House that of the former APNU+AFC Administration’s failure to secure revenues for the country’s forests during the year 2016 to 2022.
“We [the PPP/C Government] are saddled with the responsibility to ensure that we gain the necessary credits and revenues from our forest,” he said.
Guyana is the first country in the world to be issued with the TREES credits.
This also marks a milestone as the first time a country has been issued carbon credits specifically designed for the voluntary and compliance carbon markets for successfully preventing forest loss and degradation — a process known as jurisdictional REDD+.
Following completion of an independent validation and verification process and approval, ART has issued 33.47 million TREES credits to Guyana for the five-year period from 2016 to 2020.
On Thursday last, the Government of Guyana and Hess Corporation signed an agreement to buy US$750 million worth of REDD+ carbon credits from the country in the next decade to support efforts in protecting its rainforests.
The agreement which runs from 2022 to 2032 is under the UN Reducing Emissions from Deforestation and Forest Degradation programme (REDD+). It involves Hess’ purchase of 37.5 million REDD+ jurisdictional carbon credits (current and future issuances).