Vice President Dr. Bharrat Jagdeo has highlighted that the alarming global deforestation rates are primarily due to the absence of strong international incentives. On Tuesday, he made this statement during a panel discussion on Guyana’s Low Carbon Development Strategy at the Arthur Chung Conference Centre, Liliendaal.
The United Nations Food and Agriculture Organisation (FAO) estimates that 10 million hectares of forest are lost annually. Dr. Jagdeo emphasized that reaching the global goal of net zero emissions is unattainable without proper recognition of forests’ vital role in achieving this target and substantial support for their preservation.
“Deforestation and land degradation create about 16% of greenhouse gases. So, I think it’s a lack of recognition globally,” he noted.
Dr. Jagdeo recalled that approximately 15 years ago, Guyana set out to develop a sustainable and practical model for climate resilience, with a primary focus on forest conservation.
“There was the recognition that forests might play an important role, but there was no support system for it. In the UNFCC, 15 years later, that has not evolved. Forests are still not part of the offset mechanism,” he lamented.
In crafting this model, Guyana addressed critical concerns raised by the international community. Dr. Jagdeo outlined several of these issues, including the permanence of forest carbon, its measurability, the transparency in spending revenue from forest carbon sales, the protection of Indigenous peoples’ rights, and achieving national buy-in for such a model.
“One, the global community was saying forests may be important, but can forest carbon really be permanent? Could it be measurable? Can the money earned from the sale of forest carbon be spent without corruption? Would Indigenous people’s rights be respected? Could you have a national buy-in for such a model? And there was a grave doubt that all of these things could be achieved in any model,” Dr. Jagdeo explained.
A study conducted by McKinsey & Company once suggested that Guyana could generate an annual annuity of $600 million over 25 years by deforesting 90% of its land while conserving only 10% as high-conservation areas.
“We said, this is what we will need to out-compete alternate uses of the forest,” Jagdeo remarked.
However, in 2022, Guyana surpassed that potential deforestation revenue by signing a deal with Hess Corporation for high-quality carbon credits valued at at least $750 million. This demonstrated the viability of preserving 90% of the country’s forests instead of deforesting them.
“McKinsey and Company did a study at that time. They showed that the lowest cost abatement solution was forests and investing in forests. So, the world knew that forests played an important role, yet it was unprepared to provide the support for forested countries that they were providing for other abatement solutions,” Dr. Jagdeo pointed out.
He added that Guyana has already proven the success and practicality of its Low Carbon Development Strategy, noting that the international community now has the responsibility to decide on implementation and establish market-based mechanisms to encourage forest preservation.
The panel discussion also featured contributions from Erik Solheim, an International Environmental Advisor and Former Norwegian Minister of Climate and the Environment.
Despite Guyana demonstrating that its model is sustainable and measurable, Dr. Jagdeo noted that the international community still raises the same concerns, which hinder efforts to secure global support.
“The model has been proven. We can use these resources to support Indigenous communities without encroaching on their land rights. We can get everyone involved. We can use the funds accountably,” he asserted
As part of its carbon credits initiative, the government has ensured that 15% of the total revenue generated will be allocated to Amerindian development. In 2023, $4.7 billion was distributed to 242 villages across Guyana, leading to the implementation of hundreds of transformative projects in sectors such as tourism, agriculture, infrastructure, industrial arts and crafts, and income-generating ventures, all aimed at promoting sustainable livelihoods for Amerindian communities.
An additional $2.7 billion will be disbursed to over 242 villages in 2024, reinforcing the government’s commitment to supporting the first peoples of Guyana.
“The $750 million, about $110 million will go to the Amerindian communities, $640 million will go to adaptation in Guyana. Every cent will be audited. Every cent will be audited and properly spent and dedicated to climate objectives. So, I believe it’s time for the global community to step up and address this issue and provide the resources at scale,” Dr. Jagdeo concluded.