Guyana to get US$250 million from Norway

Nov 10, 2009 News

Norway agreed yesterday to pay Guyana up to US$250 million by 2015 to preserve forests as part of a scheme to slow climate change.

President Jagdeo and the Norwegian Minister, Erik Solheim, with some of the cultural performers from the ceremony that accompanied the signing of the Memorandum of Understanding between Guyana and Norway at Fairview Village, Region Nine.

Norway, which has led donor nations in slowing tropical deforestation with a budget of 3 billion Norwegian crowns ($530 million) a year, said it wanted to help Guyana maintain forests that cover 75 percent of its land.

“Saving the world’s remaining tropical forests is a crucial element in the battle against climate change,” Norwegian Environment Minister Erik Solheim said of a memorandum he signed in Guyana with President Bharrat Jagdeo.

“Provided that the expected results are achieved and that other elements of the partnership fall into place, our support for the years up to 2015 could add up to as much as $250 million,” he said in a statement.

Plants soak up carbon dioxide as they grow and release it when they are burnt or rot. The United Nations says deforestation accounts for about a fifth of all greenhouse gas emissions from human activities.

Until now, nations with high levels of forest cover have attracted less cash than worse performers promising to slow high rates of deforestation.

“Success in the global fight against deforestation means that both the countries that have high deforestation rates and those with low rates should obtain incentives to preserve their forests,” the Norwegian Ministry said.

The agreement was signed in the Amerindian community of Fairview.

“It will be impossible to defeat climate change if we don’t significantly reduce tropical deforestation”, President Jagdeo is quoted as saying. “We said several years ago that the people of Guyana stood ready to play our part in determining how this can be done. We are delighted to work alongside Norway in searching for solutions that align the development aspirations of our people with the urgent need to protect the world’s tropical forests.”

“Through this partnership, we are building a bridge between developed and developing countries,” stated Mr. Solheim. “We are giving the world a workable model for climate change collaboration between North and South. It’s not perfect, but it’s good, and it will be improved upon as we learn and develop together.”

Under the partnership, Guyana will accelerate its efforts to limit forest-based greenhouse gas emissions, and protect its rich rainforest as an asset for the world. Norway will provide financial support to Guyana at a level based on Guyana’s success in limiting emissions. This will enable Guyana to start implementing its low carbon development strategy (LCDS) at scale.

The LCDS sets out how Guyana can limit forest-based emissions, convert almost its entire energy sector to clean energy, accelerate the development of low-carbon economic sectors and address the huge challenges the country is facing in adapting to climate change.

As an illustration, 90 per cent of Guyana’s productive land is threatened by changing weather patterns, and in 2005, floods wiped out the equivalent of 60 per cent of GDP.

Financial support from Norway will be channeled through a new fund, the Guyana REDD+ Investment Fund (GRIF). Guyana’s Ministry of Finance will be responsible for the GRIF’s operations, and a reputable international financial institution to be selected by Norway and Guyana will act as manager of the fund.

“The mechanism will ensure full national and international oversight of financial flows.”

Three years ago, President Jagdeo said that Guyana might be willing to place its entire rainforest under long-term protection “to help in the world’s fight against climate change, providing our peoples’ sovereignty is respected.”

A deal to help protect tropical forests is due to be agreed at a U.N. climate conference in Copenhagen from December 7. Norway has other forest protection projects in the Congo and Amazon basins and in Tanzania.