Amerindian villages to receive between $10 M and $35M from carbon credit sales - Jagdeo

Amerindian villages to receive between $10 M and $35M from carbon credit sales – Jagdeo

Feb 16, 2023 News

Kaieteur News – Amerindian communities across Guyana are set to receive between $10 million and $35 million from carbon credit sales commencing next week, Vice President (VP), Bharrat Jagdeo has said.

Vice President, Bharrat Jagdeo

The VP made the disclosure during a meeting with representatives from over 240 Amerindian and hinterland communities across Guyana hosted at the Arthur Chung Conference Centre (ACCC) at Liliendaal, East Coast Demerara on Wednesday. Jagdeo told the gathering that a total of $4.6B (US$22M), which represents 15 percent of Hess’ payment for Guyana’s carbon credits, will be disbursed in the various communities.

The disbursement comes as a result of the historic agreement signed with Hess Corporation for Guyana’s carbon credits in 2022 that will see the country earning US$750M for its forest.

He said following consultations with the National Toshaos’ Council (NTC) and other parties, it was determined that 15 percent would be disbursed to the Indigenous peoples for community development. He said too that the amount disbursed will be determined based on the size of the community.

“It would not have been adequate just to discuss this with the NTC executive, that is why we wanted a larger group here, so that we can talk to you and explain to you the proposals that we have,” the Vice President highlighted.

Jagdeo added that a strict mechanism must be followed to ensure accountability and transparency regarding how the funds will be expended.

Each community has already created separate bank accounts, allowing funds to be accounted for. He said the money should be expended for the advancement of the communities in areas such as social welfare, food security and job creation. He said: “Although we’re putting the money in your account, you cannot draw down this money until you give it to your finance committee and you complete your village development plan. You have to complete that and that plan must be done by the village, would have to have an endorsement by the village and you’ll have to share with us the minutes of the meeting, in which the village endorses the plan.”

A section of the attendees at the disbursement of the fund hosted at ACCC Liliendaal, East Coast Demerara

Meanwhile, Jagdeo noted too that during discussions at the International Energy Conference and Expo, it was revealed that at the government level, the funds would have to go through a separate audit, with the possibility of international verification. “The transparency in the use of the funds will be maintained, but we’re not confusing this with oil and gas, the natural resources fund. That fund is separate,” he explained.

The major deal between the government and Hess, which was signed in December last, will see Guyana issuing about 7.5M credits per year, on average from 2021 to 2032 – so the Hess deal is for the purchase of about one-third of all Guyana’s credits (issued and anticipated) up to 2032.

But even before the pact was inked, the Irfaan Ali – led Administration had committed that 15 percent of the proceeds from any sale of forest carbon will go to Amerindian communities, in both forested and non-forested areas. Guyana will receive $187M, as payment for the ‘legacy period’ (2016-2020). For the period 2021 to 2025, a payment of $250M is expected; and for 2025 to 2032, $350M, under the agreement with Hess Corporation.

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Amerindian communities, Arthur Chung Conference Centre (ACCC), Bharrat Jagdeo, National Toshaos’ Council (NTC), Vice President (VP)

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