Guyana giving CARICOM US$2M from carbon credits funds

Guyana has pledged US$2 million to a Caribbean climate adaptation fund, money that it has earned for protecting its forests.

Guyana’s President, who is the incumbent Chairman of the 15-member bloc, made the announcement on Sunday as he addressed the opening ceremony of the 46th Regular Meeting of the Conference of the Heads of Government of CARICOM.

Guyana inked a carbon credits deal for at least US$750 million with the Hess Corporation. The US$750 million payment is the minimum amount Guyana is expected to collect from Hess. Should prices for carbon credits increase on the international market, Guyana will be able to get more money.

And 15% of all funds received go to Guyana’s Indigenous communities for village projects. The remaining 85% is for climate adaptation plans, like building new canals or helping local farmers grapple with increasing climate disasters like droughts.

Now, Guyana intends on using some of its earnings to help other countries in the region adapt- or prepare for and adjust- to climate change.

Outside of its funds, the President said another US$3 million has been pledged for resilience and adaptation projects across the Caribbean through an ExxonMobil global trust fund.

Previously, other countries pledged funds for climate adaptation and mitigation in the Caribbean.

Last year, Canadian Prime Minister Trudeau announced $44.8 million in new initiatives focused on biodiversity, climate resilience, and disaster preparedness and recovery to support CARICOM in addressing the climate crisis.

The United States (US), through U.S-Caribbean Partnership to Address the Climate Crisis 2030 (PACC 2030), is also supporting climate adaptation and resilience and clean energy cooperation.