Two hundred and 40 Amerindian and hinterland communities are to begin receiving money earned from the sale of Guyana’s carbon credits.
Under the historic agreement signed with Hess Corporation in 2022 that will see the country earning US$750 million for its forest, a total of GUY$4.6 billion (One Guyana dollar=US$0.004), which represents 15 percent of Hess’ payment for Guyana’s carbon credits, will be disbursed in the various communities for investment in projects there.
Vice President Dr. Bharrat Jagdeo said on Wednesday each community will receive between ten and 35 million Guyana dollars.
He made the disclosure as he addressed Toshaos – elected Amerindian village captains on the disbursement process.
Jagdeo said 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.
“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,” Jagdeo told Toshaos.
“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.”
The vice president stressed that the money should be spent on advancing the communities in areas such as social welfare, food security and job creation.
“But of course, you will determine that in each of these villages,” he added.
The Toshaos from the various communities welcomed and commended the landmark achievement.
Meanwhile, during discussions earlier on Wednesday at the International Energy Conference and Expo, Jagdeo noted that at the government level, the funds will 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, will see Guyana issuing about 7.5 million 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.
The government had committed 15 percent of the proceeds from any sale of forest carbon to go to Amerindian communities, in both forested and non-forested areas.
CMC/
