Minister of Parliamentary Affairs and Governance Gail Teixeira on behalf of Senior Finance Minister Dr Ashni Singh yesterday presented a Supplementary Bill comprising Financial Papers Number 1 and 2 to the National Assembly relating to components of the Low Carbon Develop-ment Strategy (LCDS) 2030 to be financed from carbon credit inflows.
The carbon credits programme has triggered controversy over whether it has been properly permitted and the specific conditions that will now govern the forested areas.
A statement from the Ministry of Finance said that a national consultation from October 2021 to July 2022 saw the original 2009 LCDS expanded and enhanced, culminating in the endorsement of the National Assembly and then the finalization of LCDS 2030.
In November 2022, Guyana issued the world’s first jurisdiction-scale, sovereign carbon credits as the next phase in Guyana’s creation of a global model for forest climate services.
This was followed shortly afterwards by the world’s first sale of such credits in global carbon markets.
These carbon credit inflows are being assigned to programme components of the Low Carbon Deve-lopment Strategy 2030 and come on the heels of the Government of Guyana’s engagement in further consultation over the last three months to determine the structure of the two disbursement channels outlined in the LCDS 2030:
Disbursement Channel 1: Village-Led Invest-ments: After the seven-month national consultation on LCDS 2030, it was agreed that 15 percent of all revenues received from the sale of carbon credits would be paid directly to indigenous and local communities across Guyana, the statement said. For the year 2023, this totals US$22.5 million or G$4.7 billion and is catered for under Financial Paper No 1 of 2023.
Over January to February 2023, the statement said that the National Toshaos Council, the national body of elected Village Leaders from across all ten regions of Guyana, led engagements which determined a structure for the allocation of these carbon credits payments. This structure centres on the determination of payments, based on population, and includes villages (both titled and untitled areas), communities, and satellites. Indigenous villages and local communities will set for themselves their priorities of economic development initiatives of social upliftment, on climate adaptation and mitigation and food security that need to be advanced for village sustainability to be fostered. The release said that village level governance structures are empowered through the Amerindian Act 2006, to deliver on village sustainability plans, outlining the short, medium and long-term priorities for each Village. These plans outline how villages, through a process of self-determination and autono-mous management, will identify and implement actions to nurture village livelihoods whilst addressing the impacts of climate change. It is intended that long-term carbon credits financing, will see flows of revenues to villages and communities from this year 2023 and onwards into the future.
Disbursement Channel 2: 85 percent of earnings from the sale of carbon credits, so far to a total value of US$127.5 million or G$26.5 billion for the 2023 allocation. This will address the most urgent priorities of low carbon development, as well as climate adaptation and mitigation interventions outlined by the LCDS 2030, the release said. This is being sought under Finan-cial Paper No 2 of 2023.
