LCDS will help Guyana avoid perils of fossil fuel trap – environmental scientist

May 09, 2022 News

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Kaieteur News – With the emergence of the oil and gas sector, Senior Director for Climate and REDD+ at the Ministry of Natural Resources, Pradeepa Bholanath asserts that the government’s Low Carbon Development Strategy (LCDS) 2030 is more important now than ever.
During an interview on Kaieteur Radio’s Programme, Guyana’s Oil and You, Bholanath explained that back in 2010, stakeholders had conducted various debates about balancing the competing objectives associated with economic development and the environmental impacts. The Environmental Economist said, this conversation for Guyana has now broadened with the emergence of fossil fuel development.
Bholanath said, “In light of this, I think LCDS 2030 is crucial now for Guyana because as we develop the oil and gas economy and as we look towards all the other sectors, the document underscores in an even more prominent way, the importance of diversifying the economy, to ensure that we do not fall into the trap of the Dutch disease and to be over reliant on one sector just because it happens to be the main driver of considerable income. So we need to avoid falling into that trap…”
Expounding further, Bholanath said LCDS 2030 is important because it examines the oil and gas economy, especially as it relates to the demand and the supply side measures. The Environmental Economist explained that on the demand side measures, the world as it stands is not in a state where it is ready to move away completely from fossil fuel. As such, she pointed that there are several countries such as China, Russia and the USA which have dominated the oil and gas supply chains to the point that they enjoy a monopoly. The industry stakeholder contended that Guyana is now in a position to be part of that market. She noted however, that being part of that market does not mean the nation would continue to have a vision of fossil fuel use at the same rate and extent that prevails now.
Bholanath explained that in the LCDS 2030 document, where demand is concerned, she said Guyana’s position is that it will continue to advocate for a reduction in subsidies on fossil fuel so as to ensure that those economically competitive, low carbon providers, are the ones that should prevail. “So it is not only about meeting the energy demands but doing so in a way that is congruent with low carbon development,” expressed Bholanath who added that LCDS 2030 offers strong advocacy for a global carbon tax and for this to be implemented in a way that would allow for there to be a strengthened and freer move towards clean renewable energy.
On the supply side, she said the government stands firmly in ensuring that measures are in place for a transition to cleaner energy sources. “And those aspects such as hydro, wind, solar and gas would be advanced with the proceeds of LCDS and would dominate the grid. So LCDS 2030 in essence takes on the oil and gas sector frontally…I think the task is in front of us to take on that challenge frontally and to provide the solutions that will pave the way for industry and government to advance low-carbon development in the best way forward and the best way practical,” the Environmental Economist concluded.
ABOUT LCDS 2030
Kaieteur News previously reported that LCDS 2030 outlines how the Government of Guyana will accelerate economic growth and development in a non-polluting, low carbon way. It outlines how Guyana will utilize and monetize its natural resources such as its lush and pristine forests in a sustainable manner so as to combat the impacts of climate change. The document also ensures the country’s world-class forests, biodiversity, water, and marine resources are valued for the vital contribution they make to the health of the planet.
The current draft that was launched by President, Dr. Irfaan Ali in late 2021 is undergoing a period of consultation with citizens on how the nation can re-double its efforts towards achieving the outlined vision, the roots of which can be traced back to 2009. In 2009, Guyana had launched the first Low-carbon Development Strategy as a developing country, setting out a vision for inclusive, sustainable development, while simultaneously maintaining the country’s forests, about 85% of the country’s territory, to help meet some of the most urgent challenges the world faces.
There is no doubt that Guyana intends to stay true to the vision set out in 2009 which is to create a model low-carbon economy for the world. Since 2009 however, local authorities have gained a greater understanding of the outsized contribution Guyana’s ecosystems make to the world’s health and economy, as well as its role as one of the world’s most important countries for biodiversity conservation.
Below are some interesting facts about the important role Guyana’s forests play as noted in the LCDS 2030.
· Guyana has the second-highest percentage of forest cover on earth and is working with partners to sustain 99.5% of that forest while building the foundation for a new low carbon, ecosystem economy. The government has said it expects to tap opportunities to access a market mechanism for forest climate services and other ecosystem services. This will enable Guyana to store 19.5 billion tonnes of carbon dioxide equivalent (the measure used for greenhouse gas emissions).
· Deforestation rates are among the lowest in the world and Guyana is one of only four countries in the world (and one of only two in the Amazon Basin) verified to have sustained a High Forest Low Deforestation (HFLD) state.
· Guyana is one of four countries which host the Guiana Shield, one of the most pristine rainforest landscapes in the world. The Guiana Shield stores around 18% of the world’s tropical forest carbon and 20% of the world’s fresh water.
· Guyana has already earned income for ecosystem services. Over the period 2010 to 2015, the Guyana Norway Agreement on climate and forests saw Guyana earning US$220 million which saw over 2,000 jobs created under the micro and small enterprise project; 180 communities and villages received funding to strengthen entrepreneurship in Amerindian village economies; the Amerindian Land Titling Programme advanced with 13 villages issued with Absolute Grants, bringing the total number of Absolute Grants to 109. Furthermore, 21 villages were demarcated, 19 were issued with certificates of title, bringing total Certificates of Title to 96. Additionally, more than 500 villagers were trained in Free Prior and Informed Consent (FPIC), mediation and awareness exercises. Importantly, the Guyana Norway Agreement provided financing for the rehabilitation of the Cunha Canal, provided finance for the first utility-scale solar project in Guyana, and is financing the establishment of 200 ICT hubs in hinterland and rural areas. LCDS 2030 is currently undergoing a period of national consultation. Once this is completed, the LCDS will be finalised and then tabled in the National Assembly.

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