While Norway has releas-ed all remaining payments from its forest protection accord with Guyana, the current APNU+AFC government cannot access the funds due to its current caretaker status and payments cannot be sanctioned until after the expected March 2nd general elections.
“I also believe it was made clear by our minister during the climate summit in NYC that payments will be sanctioned out of the GRIF [Guyana REDD+ Investment Fund] until after the elections have been held and a government with a mandate from that election is in place,” former Director of the Norwegian International Climate and Forest Initiative (NICFI) Per Fredrik Pharo told Sunday Stabroek.
“In other words, the money will not be spent until the current situation is resolved,” Pharo added.
Government was defeated on a vote of no-confidence in the National Assembly last December, resulting in early elections becoming due. In the interim, the APNU+AFC administration is unable to exercise the full powers of government and has been dubbed a caretaker administration by the Caribbean Court of Justice.
Following a meeting between Minister of State Dawn Hastings-Williams and Norway’s Minister for Climate and Environment Ola Elvestuen on the margins of last month’s United Nations Climate Summit in New York, Guyana’s Ministry of the Presidency announced that all remaining payments would be released.
The sums, amounting to around US$50 million, represent the final tranche to be paid as a result of a forest protection accord that the two countries signed in 2009. Under the 2009 deal, Norway agreed to pay up to US$250 million over five years for Guyana’s performance on limiting greenhouse gas emissions from deforestation and forest degradation, and for progress made against governance-related indicators.
Only a small amount of this money has been utilised and monies were still to be assigned based on performance.
Pharo explained that the monies were being paid into the GRIF, for which the World Bank is a trustee.
Of the payments by Norway, around US$80 million was set aside last year for renewable energy projects. It had originally been earmarked for an equity stake for Guyana in the proposed Amaila Falls Hydropower Project but this was not proceeded with by the APNU+AFC government.
In accordance with the agreement between the two countries, the statement said that the two Ministers agreed that Guyana has met its commitments and, therefore, Norway would disburse all final payments, totalling approximately US$50 million.
Hastings-Williams acknowledged that both countries would have met their responsibilities with the final release. She also highlighted important successes of the partnership and how it yielded enhanced forest governance. She added that Guyana is better placed through institutional strengthening to deliver the Green State Development Strategy.
The statement said that Elvestuen emphasised at the meeting that Norway is impressed with the continued low deforestation rates in Guyana over many years, and also with the substantive progress made on forest governance. The world looks to Guyana for what sustainable development in forest rich countries can be, Elvestuen said, according to the statement.
Pharo reiterated Elvestuen’s position on commitment. “I also think it is clear that this announcement reaffirms that the Government of Norway is still fully committed to Guyana’s green development. How that plays out in future remains to be seen… but as long as the essential meeting of minds on keeping deforestation to a minimum and working towards green, low carbon development, we have a good basis for our partnership,” he said.
