Oil hot-spot Guyana sees potential for lucrative carbon-offset business

GEORGETOWN — Guyana, which has jumped into the forefront of offshore oil exploration, is using its inland forests to tap carbon markets, in a business the government sees as more profitable than using the acreage for mining or agriculture, Vice President Bharrat Jagdeo said on Wednesday. The South American country, one of the fastest growing…
Oil hot-spot Guyana sees potential for lucrative carbon-offset business

GEORGETOWN — Guyana, which has jumped into the forefront of offshore oil exploration, is using its inland forests to tap carbon markets, in a business the government sees as more profitable than using the acreage for mining or agriculture, Vice President Bharrat Jagdeo said on Wednesday.

The South American country, one of the fastest growing oil producing nations after a consortium led by Exxon Mobil Corp discovered billions of barrels of oil in the last decade, has 90% of its territory covered by forests.

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account
  • Share your thoughts and join the conversation in the comments
  • Enjoy additional articles per month
  • Get email updates from your favourite authors

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Its sales of carbon credits could generate $4 billion to $5 billion for the country, Jagdeo told an energy conference.

Mining and agriculture sustained the economy before Guyana, among South America’s most underdeveloped nations, started producing oil in 2019.

Guyana’s more than 18 million hectares (44.5 million acres) of forests are estimated to store some 20 billion tonnes of carbon dioxide equivalent. The country aims to maintain 99.5% of its forests.

The decision was not made “based on altruism,” Jagdeo said during the second day of Guyana’s Energy Conference and Expo.

“We are monetizing these resources and we are utilizing these resources to develop our country,” he said.

In December, the government sold carbon credits worth some $750 million in a multi-year deal to Hess Corp, one of the three companies producing oil in Guyana through the Exxon-led consortium.

Guyana would receive more if the price of carbon – currently estimated at $20 per tonne but with potential to go to $90 per tonne – rises, he said.

Indigenous communities that preserve the forests are expected to receive $22 million from the sale as soon as next week, Jagdeo said.

The agreement between Hess and Guyana was signed under the United Nations’ Reducing Emissions from Deforestation and Forest Degradation program (REDD). (Reporting by Sabrina Valle in Georgetown Editing by Marguerita Choy)

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Wall St opens flat as focus turns to Fed meeting
Read More

Wall St opens flat as focus turns to Fed meeting

Author of the article: U.S. stock indexes opened flat on Monday after closing out a rough April, with investor focus on the Federal Reserve meeting this week where policymakers are widely expected to raise interest rates. The Dow Jones Industrial Average rose 1.28 points at the open to 32,978.49. The S&P 500 opened lower by…
Ex-BOJ Shirai calls for more flexibility in bond buying
Read More

Ex-BOJ Shirai calls for more flexibility in bond buying

TOKYO — Former Bank of Japan board member Sayuri Shirai said on Sunday Japan’s economic conditions justify the current low interest rate environment, but added that the central bank should make its government bond buying more flexible. Some market players pay close attention to Shirai’s views as she is seen as among candidates to become…
Yellen sees U.S. economy as very strong despite inflation – senior official
Read More

Yellen sees U.S. economy as very strong despite inflation – senior official

Author of the article: TOKYO — U.S. Treasury Secretary Janet Yellen will emphasize the strength of the U.S. economy despite high inflation and a 1.6% annualized drop in first quarter gross domestic product when she meets with Japanese Finance Minister Shunichi Suzuki on Tuesday, a senior Treasury official told reporters. Yellen will describe steps Washington…