Happy with carbon credits sale to airlines, Guyana continues push for full compliance market

With two previous carbon credit deals, one at the bilateral level with Norway and another though a voluntary market-based arrangement with Hess Corporation, the Guyana Government has welcomed, though limited, new market compliance arrangements.

Under the new compliance arrangement, Guyana will make the first eligible carbon credits available to airlines to cover their obligations during the first phase of the U.N.-brokered CORSIA deal which starts this year.

On Thursday, Vice President Dr. Bharrat Jagdeo welcomed the development even as he recalled the national and global efforts over the years towards achieving a full and global compliance market that will allow forested countries to freely trade carbon credits.

Jagdeo acknowledged that while almost five million credits from Guyana’s rainforests can now be purchased by airlines, the new development constitutes limited compliance.

“Guyana will continue to push the goalpost to get to a full compliance market,” the VP told reporters at a party press conference.

He recalled Guyana was the first country to get issued carbon credits under the new high-integrity carbon standard ART (Architecture for REDD+ Transactions). Guyana was issued 33.47 million forest carbon credits for preventing and reducing deforestation and forest degradation in the period 2016-2020.

Hess agreed to purchase the high-quality REDD+ carbon credits from Guyana, for the period 2022 and 2032, for at least US$750 million.

“Guyana decided that it had to have a phased approach and can’t wait for the compliance market to benefit from these credits.

“Now we moved it forward with a limited compliance market.

“…but we are fighting to have a full compliance market where credits can be fully traded and prices can escalate and for a built-in mechanism for sharing benefits for trading on secondary markets,” Jagdeo said.

He noted that Guyana is working with its continental partners including Brazil, home to much more than the 1% of global tropical forest Guyana offers.

During his visit to Guyana earlier this week, Jagdeo said he spoke with President Lula.

Those talks centered on an intent to maintain the sovereignty of the forest without having an intrusive mechanism for certification but ensuring standards are met.

“Not every forested country wants to go to full market base… many have land tenure issues that complicate this.

“I would be going to Brazil to talk more about this with the Brazilian authorities as we bring together all forested countries… and ensure more market based funds while we preserve individual approaches each country will take,” Jagdeo added.