Guyana wants up to US$54 Billion annually for forest services — LCDS 2030

Nov 09, 2021 News

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Kaieteur News – Guyana’s Head of State, President Irfaan Ali and Vice President, Dr. Bharrat Jagdeo have, in recent months and weeks, been making a case for a carbon market for countries such as Guyana to be paid for its forest services provided to the world in the form of sequestering carbon emissions from the atmosphere.
To this end, the administration believes that Guyana’s forests alone provide value that is estimated to range between US$40 and US$54 billion annually.
“Yet, this value is not recognised in monetary terms” and “by contrast, jobs and economic value can be generated by clearing forests for agriculture, mining, infrastructure, and other uses.”
These assertions are laid out in the administration’s latest version of its Low Carbon Development Strategy (LCDS) 2030 which aims to build on its predecessor’s policy document.
According to the document — since made public for public consultations—“this is a global problem and one of the reasons that the world’s tropical forests are worth more dead than alive and forest areas that are the size of Greece disappear each year, causing about 16 percent of global greenhouse gas emissions.”
To this end, the expanded LCDS outlines that Guyana has the second highest percentage of forest cover on earth and is working with partners to sustain 99.5 percent of that forest while building the foundation for a new low carbon, ecosystem economy.
It was noted that the expected opportunity to access a market mechanism for forest climate services, and other ecosystem services, will enable Guyana to store 19.5 billion tons of carbon dioxide equivalent and pointed out that the world emits about 50 billion tons a year.
“At the same time, Guyana can grow its economy five-fold over 20 years and keep energy emissions flat; invest in Amerindian, Hinterland and sustainability planning; protect the coast and Hinterland from climate change; create jobs; and integrate Guyana’s economy with its neighbours,” the document adds.
As it relates to Forest Climate Services and other Ecosystem Services, the report outlines that from early 2022, there is a strong possibility that Guyana can access market-based mechanisms for forest climate services that include private, as well as international public sector financing. It notes, “This will enable a pathway to transition from the existing Guyana-Norway partnership and increase the value of sustainably managing Guyana’s forests.”
Guyana’s forestry sector currently accounts for approximately US$40 million to US$60 million in export value annually and employs over 20,000 persons.
There are 17 large concessions in Guyana and 580 small concessions, all of which are leased to and operated by community forest operators and private individuals/companies.
The State holds no equity or other management interest in any forest concession and Government, through the Guyana Forestry Commission, monitors and regulates the activities of forest concessions to ensure that strict sustainable forest management rules and guidelines are implemented, and that forest legislation is implemented effectively by operators.
To this end, the document illustrates that the long-term future of forest carbon markets is expected to be underpinned through the United Nations Framework Convention on Climate Change’s (UNFCCC) rules and corresponding international agreements.
As a bridge to a long-term mechanism, Guyana may seek to access market-based mechanisms for forest carbon through integration with existing or new compliance markets or high-quality voluntary markets.
The report said Guyana’s significant progress on building a world-leading MRVS (Monitoring Reporting Verification System), coupled with the recent emergence of a large voluntary market with demand supported by sovereign governments, “means that from early 2022, there is a strong possibility that Guyana’s sale of forest climate services can be structured around high-quality voluntary markets that include private, as well as international public sector financing.”
It was noted too that no binding agreements will be entered into until all safeguard related requirements have been met.
According to the document, Guyana will approach carbon market integration in the period 2021 to 2030 in two phases, firstly by generating credits to be traded on voluntary carbon marketplaces, with independent verification of the quality of those credits and their adherence to the rules of the marketplaces.
Credits will adhere to UNFCCC guidance on REDD+, pending the launch of a full REDD+ mechanism.
Additionally, the document states that Guyana will enhance the quality of its credits further through establishing a national carbon registry, integrated with international markets and with any future REDD+ mechanism under the UNFCCC.
This, the document states, will be done in accordance with the rules of all relevant international agreements on markets and carbon trading. It will be underpinned by domestic regulation and/or legislation as necessary for market integration and UNFCCC compliance.

 

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