Guyana has an opportunity to be a global model

Apr 21, 2018 Letters

DEAR EDITOR,
What should Guyana do if offered $100 Billion US to keep its oil in the ground?
This is a great question to consider as the country continues its endeavour to be a benchmark location for sustainable habitat rooted in renewable energy sources.
As the world becomes more serious about the prevention of climate change and is willing to prevent the increased use of fossil fuels while fostering the use of renewable energy sources, the posing of this question becomes more feasible.
First, the investment of the total $100 Billion amount could be jointly managed externally with the UN allowing for the creation of a supplementary fund based on investment earnings, to also assist smaller, low-lying states to transition to renewable energy sources. Thus, allowing the benchmark location of Guyana to also share in the responsibility of implementing best practices across other affected countries. The Caribbean is a great location for such a focus and the existence of the Caribbean Community Secretariat in Guyana is quite an enabler.
Such a responsible posture towards energy investment and consumption could be duplicated in other regions of the world via the creation of additional benchmark countries that would also leave their oil in the ground while embracing renewable energy sources and its implementation in affected countries within their region.
This proposed global systematic approach could quickly propel the agendas of the members of the UN and signers of the Kyoto Protocol. With the world taking such a leadership position on climate change with shared preventative funding that positively alters the climate change curve, a profound impact on how countries approach their energy investment policies will be accomplished.
Second, let us consider the amount and its associated time period. Currently, the Guyanese economy is approximately $3 billion US in size annually, and if we look at the contracts currently in place with oil companies the $100 Billion is very attractive.
Further, considering the time period associated with the extraction of the oil we can estimate a 20- to 30-year time frame, thus making the annual amount close to an estimated $4 Billion US. However, it would be more appropriate to have an annual influx of $1Billion US, thus allowing the government to increase its capabilities and capacity to manage the additional funds through the still developing Ministries.
This would alter the time period to 100 years, thus allowing a long term position on Investment. In addition, the country would be able to reduce its debt levels while repaying the oil companies for their current investment and the responsible closure of the drilled wells. Guyanese would also be able to benefit from strong, long term fiscal improvement via both currency appreciation and responsible structured investments.
The location of Guyana, it’s historic role in the Caribbean Commonwealth and Community, and the small size of its economy allows for measured economic long term growth over the century that is both positive on a national scale while also providing an internationally modeled solution for the climate change phenomena.
As a global body, the UN has spoken extensively on the need for addressing the pressing issue of climate change and the countries, especially within the Caribbean geographical area, have seen the devastating impact of hurricanes in the recent past.
The creation of such a fund for Guyana to leave its oil in the ground and the successful implementation of a sustainable habitat agenda rooted in renewable energy sources would also encourage such preventative funds to be created in other regions where additional benchmark countries should be created for the usage of renewable energy. This proposed approach will help positively impact the key variables that are creating unwanted climate change.
Best regards,
Jamil Changlee

Discover more from Kaieteur News

Subscribe to get the latest posts sent to your email.

Latest News