In recent years, Guyana’s forest gave the country US$1 billion – and not a single tree was cut down to earn that money. The story of how it was able to do so was this weekend shared with the seven other countries that make up the Amazon.
The U.S. Treasury Secretary Janet Yellen announced a new initiative with Guyana and other Amazon countries to detect illicit financing that drives nature crimes, such as illegal harvesting of trees.
How Guyana has been able to marry economic development while saving its trees for the global good is rooted in the Low Carbon Development Strategy (LCDS), Minister of Natural Resources Vickram Bharrat told a group of ministers and directors of the Inter-American Development Bank (IDB) meeting in Brazil.
Their meeting is being held to mark the first anniversary of Amazonia Forever, an initiative led by IDB aimed at the preservation and sustainable development of the Amazon region. The Amazon countries agreed to partner with the IDB on forest conservation and climate action, offering economic alternatives to improve people’s quality of life.
In just one year, Amazonia Forever has moved from US$1 billion in operations to US$3.77 billion.
The Amazonia Forever 1st anniversary meeting saw participation from key figures, including Yellen, regional partners, and environmental leaders.
The Amazon Basin is a critical global resource, covering about 60% of the world’s rainforest and harboring 10% of known biodiversity. However, the region faces severe threats, primarily due to deforestation driven by cattle ranching, soy production, logging, and mining activities. In the last 50 years, approximately 20% of the Amazon rainforest has been lost, raising concerns about the future of this vital ecosystem.
Minister Bharrat highlighted Guyana’s significant contributions to Amazon preservation. Guyana, with 85% of its land covered in rainforest, has been a leader in sustainable forest management.
Yellen said the global transition to a low-carbon economy demands $3 trillion in new capital every year till 20250, far above current financing, but she said filling the gap is the biggest economic opportunity of the 21st century
Guyana’s LCDS, started in 2009 and now in its second phase with the LCDS 2030, is a roadmap of how countries can balance economic development with environmental conservation.
Guyana’s forest store over 19 gigatons of carbon and Guyana’s rainforests sequester an estimated 154 million tons of carbon dioxide annually, making the country a net carbon sink.
Minister Bharrat called for a deeper global understanding of the economic pressures that drive deforestation and the need for financial incentives to preserve forests.
He emphasised the importance of both public and market-based finance in achieving sustainable development goals.
Guyana has pioneered in climate finance, notably through its engagement in the voluntary carbon market. This strategy has already garnered approximately USD 750 million for the period 2016 to 2030.
Through the first LCDS, Guyana earned US$224 from the Kingdom of Norway.
With recent advancements, including the authorisation of carbon units for international aviation under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), Guyana is set to earn more while keeping its forests intact.
Minister Bharrat also highlighted Guyana’s groundbreaking efforts to use climate finance to support indigenous communities.
Fifteen percent of the proceeds from carbon credit sales, equivalent to G$4.7 billion (US$22.5 million), have been allocated directly to 242 indigenous communities, enhancing livelihoods and promoting sustainable development at the grassroots level.
Guyana is committed to the conservation and sustainable use of its terrestrial and oceanic resources, ensuring that these are leveraged for economic, social, and environmental benefits.
The government emphasises education and capacity building as critical components in combating climate change and promoting sustainable practices.
Minister Bharrat underscored the importance of international partnerships in achieving these goals.
He acknowledged the support of development partners, including the Inter-American Development Bank (IDB), the Amazon Cooperation Treaty Organization (ACTO), and the World Bank, along with bilateral partners like the United States.
The collaboration is crucial as the region prepares for significant international conferences such as the Biodiversity COP 16 in Colombia and the UNFCCC COP 30 in Brazil.
