This Low Carbon Development Strategy until the year 2030 (or LCDS 2030) has been produced after a seven month national consultation on an initial draft, and sets out how Guyana can stay true to the vision set out in 2009. The country can create a model for avoiding deforestation and maintaining forests, while at the same time growing the economy five-fold over 10 years and keeping energy emissions flat; investing in urban, rural and Amerindian development; protecting the coast and hinterland from climate change; creating jobs in a suite of low carbon sectors; aligning the education and health sectors with low carbon development, and integrating Guyana’s economy with its neighbours. The LCDS 2030 sets out four inter-linked objectives for Guyana, the first three of which were the basic objectives of the LCDS since 2009 and the fourth of which was added to reflect new local and global realities: • Value Ecosystem Services • Invest in Clean Energy and Stimulate Low Carbon Growth • Protect Against Climate Change and Biodiversity Loss • Align with Global Climate and Biodiversity Goals.
Over time, Guyana aims to integrate with global mechanisms that value the country’s globally significant ecosystem services including biodiversity, water management and ocean or marine resources. In the immediate term, Guyana’s efforts will focus mainly on forest climate services, and the value Guyana provides the world in the fight against climate change, continuing with the three-phase approach first set out in 2009. The first phase of Guyana’s low carbon vision, where payments for forest climate services were to come from a bilateral partner, saw Guyana entering the Guyana-Norway Partnership in 2009. During the period 2009 to 2015, Guyana earned US$212.6 million dollars in payments for forest climate services from Norway, which reached US$220.8 million when investment income was included. These revenues were invested in renewable energy, protection against climate change, land titling, job creation and other priorities in the original LCDS. Crucially, Phase I saw Guyana building a world-class Monitoring, Reporting and Verification System (MRVS) for forest carbon, which now enables Guyana to move to Phase II for selling forest climate services in voluntary carbon markets. The period 2016 to 2021 saw no payments for forest climate services under the Guyana-Norway Agreement but Guyana’s MRVS continued to operate, allowing the generation of carbon credits for that period. These can be sold if a market can be accessed in Phase II. The long-term future of forest carbon markets is expected to be underpinned through the UNFCCC’s rules and corresponding international agreements. Towards this end, progress on REDD+ was made at, and since, the 2015 Paris Climate Agreement under the UNFCCC. In 2021, at the Glasgow Conference of the Parties (known as COP26) of the UNFCCC, Guyana joined with other forest countries and the international community to pursue the enshrinement of a workable market mechanism within the UNFCCC. Progress was made at COP26 on the rules for market mechanisms, specifically towards the operationalization of Articles 6.2 and 6.4 of the Paris Climate Agreement which address markets. As a result of this work at the global level, coupled with the continued operation of Guyana’s MRVS for over a decade, Guyana now can move to Phase II of the vision set out in 2009, and seek to access market-based mechanisms for forest carbon. From 2022, there is a strong possibility that Guyana’s sale of forest climate services can be structured around high-quality voluntary markets that could include private, as well as international public sector, financing. Guyana assessed various market standards that could underpin such an integration with global carbon markets, and the ART-TREES mechanism is the best match for Guyana’s objectives – given that it values Guyana’s contribution to maintaining globally significant forests and provides the means to access new revenues to boost both national programmes and community-led initiatives. Revenues from carbon (and potentially other ecosystem services) markets, along with other national resources will be invested in: • National Low Carbon Priorities. These are set out in the LCDS and an accompanying LCDS Investment Plan • Community-produced Village Sustainability Plans (VSPs). A dedicated 15% of carbon market revenues will be available for community-led programmes for indigenous peoples and local communities (IPLCs). These will be set out in Village Sustainability Plans or equivalent, put together by communities themselves. Overall, this investment will see Guyana undergo one of the world’s most ambitious energy transitions and grow the economy up to five-fold, while keeping greenhouse gas emissions from energy generation at around 2019 levels. This can be done through the replacement of expensive, polluting, heavy fuel oil with natural gas as a bridge to an energy system built mainly from hydropower, solar and wind power. Alongside the national low-carbon energy transition, targeted investments can be made in the underlying infrastructure of a broader, low carbon economy to create jobs all over the country and enhance livelihoods. This includes investment to create a circular economy in Guyana where waste is avoided and better managed; better digital and transportation infrastructure; improved urban planning in Georgetown and its environs as well as in the other towns; sector-specific work across the country’s economic sectors - including tourism, sustainable forestry, mining, business services, agriculture and fisheries; support for climate-smart health and education facilities; as well as laying the basis for new initiatives in areas such as fishing, shipping, ocean biodiversity and mangroves.
LCDS 2030 Objective 1: Value Ecosystem Services: Over time, Guyana aims to integrate with global mechanisms that value the country’s globally significant ecosystem services including biodiversity, water management and ocean or marine resources. In the immediate term, Guyana’s efforts will focus mainly on forest climate services, and the value Guyana provides the world in the fight against climate change, continuing with the three-phase approach first set out in 2009. LCDS 2030 Objective 2: Invest in Clean Energy and Stimulate Low Carbon Growth Revenues from carbon (and potentially other ecosystem services) markets, along with other national resources will be invested in: • National Low Carbon Priorities. These are set out in the LCDS and an accompanying LCDS Investment Plan • Community-produced Village Sustainability Plans (VSPs). A dedicated 15% of carbon market revenues will be available for community-led programmes for indigenous peoples and local communities (IPLCs). These will be set out in Village Sustainability Plans or equivalent, put together by communities themselves. LCDS Objective 3: Protect against climate change and biodiversity loss Global wellbeing continues to be damaged by climate change, including in Guyana where extreme weather events are destroying livelihoods and damaging the economy. In early 2021, floods saw the declaration of a National Disaster after the country experienced the second highest level of rainfall since 1981. Unlike in 2005, when floods affected close to 37% of the population and caused economic damage equivalent to 60% of GDP, the 2021 floods impacted all regions of the country and was declared a national disaster.. Over 130,000 acres (52,609 ha) of farmland were affected and approximately 1.3 million animals were lost. In 2015, Guyana concluded a comprehensive Climate Resilience Strategy and Action Plan (CRSAP). However, this was not updated since then, so some of its recommendations need further analysis. Based on the outcomes of this analysis, Guyana will start a new set of priority investments in drainage and irrigation, sea defences, mangrove restoration, f lood and drought measures to address the potential harm to households and businesses from climate change. LCDS Objective 4: Align with global climate goals Implementing the LCDS will advance progress towards the UN Sustainable Development Goals, as well as a a series of mulilateral, regional and bilateral agreements. Moreover, since the production of the 2009 LCDS, Guyana has discovered oil and gas, which has transformed the country’s development prospects. Guyana will act strategically and responsibly as the sector develops, supporting global energy security while diversifying and decarbonising Guyana’s domestic economy and investing in development priorities for all Guyanese, including health, education and low-carbon opportunities. At the same time, the Government will advocate internationally for a strong global carbon price and the removal of subsidies on fossil fuel to incentivise the lowest carbon, most costeffective oil and gas in the global marketplace in line with the goals of the Paris Climate Agreement - under which there will be demand for decades to come. In parallel, Guyana will advance progressive policy to exceed recognised global standards for flaring and mandate the use of best technology in the Oil and Gas sector to limit its environmental impact.
Over time, Guyana aims to integrate with global mechanisms that value the country’s globally significant ecosystem services including biodiversity, water management and ocean or marine resources. In the immediate term, Guyana’s efforts will focus mainly on forest climate services, and the value Guyana provides the world in the fight against climate change, continuing with the three-phase approach first set out in 2009. The first phase of Guyana’s low carbon vision, where payments for forest climate services were to come from a bilateral partner, saw Guyana entering the Guyana-Norway Partnership in 2009. During the period 2009 to 2015, Guyana earned US$212.6 million dollars in payments for forest climate services from Norway, which reached US$220.8 million when investment income was included. These revenues were invested in renewable energy, protection against climate change, land titling, job creation and other priorities in the original LCDS. Crucially, Phase I saw Guyana building a world-class Monitoring, Reporting and Verification System (MRVS) for forest carbon, which now enables Guyana to move to Phase II for selling forest climate services in voluntary carbon markets. The period 2016 to 2021 saw no payments for forest climate services under the Guyana-Norway Agreement but Guyana’s MRVS continued to operate, allowing the generation of carbon credits for that period. These can be sold if a market can be accessed in Phase II. The long-term future of forest carbon markets is expected to be underpinned through the UNFCCC’s rules and corresponding international agreements. Towards this end, progress on REDD+ was made at, and since, the 2015 Paris Climate Agreement under the UNFCCC. In 2021, at the Glasgow Conference of the Parties (known as COP26) of the UNFCCC, Guyana joined with other forest countries and the international community to pursue the enshrinement of a workable market mechanism within the UNFCCC. Progress was made at COP26 on the rules for market mechanisms, specifically towards the operationalization of Articles 6.2 and 6.4 of the Paris Climate Agreement which address markets. As a result of this work at the global level, coupled with the continued operation of Guyana’s MRVS for over a decade, Guyana now can move to Phase II of the vision set out in 2009, and seek to access market-based mechanisms for forest carbon. From 2022, there is a strong possibility that Guyana’s sale of forest climate services can be structured around high-quality voluntary markets that could include private, as well as international public sector, financing. Guyana assessed various market standards that could underpin such an integration with global carbon markets, and the ART-TREES mechanism is the best match for Guyana’s objectives – given that it values Guyana’s contribution to maintaining globally significant forests and provides the means to access new revenues to boost both national programmes and community-led initiatives. Revenues from carbon (and potentially other ecosystem services) markets, along with other national resources will be invested in: • National Low Carbon Priorities. These are set out in the LCDS and an accompanying LCDS Investment Plan • Community-produced Village Sustainability Plans (VSPs). A dedicated 15% of carbon market revenues will be available for community-led programmes for indigenous peoples and local communities (IPLCs). These will be set out in Village Sustainability Plans or equivalent, put together by communities themselves. Overall, this investment will see Guyana undergo one of the world’s most ambitious energy transitions and grow the economy up to five-fold, while keeping greenhouse gas emissions from energy generation at around 2019 levels. This can be done through the replacement of expensive, polluting, heavy fuel oil with natural gas as a bridge to an energy system built mainly from hydropower, solar and wind power. Alongside the national low-carbon energy transition, targeted investments can be made in the underlying infrastructure of a broader, low carbon economy to create jobs all over the country and enhance livelihoods. This includes investment to create a circular economy in Guyana where waste is avoided and better managed; better digital and transportation infrastructure; improved urban planning in Georgetown and its environs as well as in the other towns; sector-specific work across the country’s economic sectors - including tourism, sustainable forestry, mining, business services, agriculture and fisheries; support for climate-smart health and education facilities; as well as laying the basis for new initiatives in areas such as fishing, shipping, ocean biodiversity and mangroves.
LCDS 2030 Objective 1: Value Ecosystem Services: Over time, Guyana aims to integrate with global mechanisms that value the country’s globally significant ecosystem services including biodiversity, water management and ocean or marine resources. In the immediate term, Guyana’s efforts will focus mainly on forest climate services, and the value Guyana provides the world in the fight against climate change, continuing with the three-phase approach first set out in 2009. LCDS 2030 Objective 2: Invest in Clean Energy and Stimulate Low Carbon Growth Revenues from carbon (and potentially other ecosystem services) markets, along with other national resources will be invested in: • National Low Carbon Priorities. These are set out in the LCDS and an accompanying LCDS Investment Plan • Community-produced Village Sustainability Plans (VSPs). A dedicated 15% of carbon market revenues will be available for community-led programmes for indigenous peoples and local communities (IPLCs). These will be set out in Village Sustainability Plans or equivalent, put together by communities themselves. LCDS Objective 3: Protect against climate change and biodiversity loss Global wellbeing continues to be damaged by climate change, including in Guyana where extreme weather events are destroying livelihoods and damaging the economy. In early 2021, floods saw the declaration of a National Disaster after the country experienced the second highest level of rainfall since 1981. Unlike in 2005, when floods affected close to 37% of the population and caused economic damage equivalent to 60% of GDP, the 2021 floods impacted all regions of the country and was declared a national disaster.. Over 130,000 acres (52,609 ha) of farmland were affected and approximately 1.3 million animals were lost. In 2015, Guyana concluded a comprehensive Climate Resilience Strategy and Action Plan (CRSAP). However, this was not updated since then, so some of its recommendations need further analysis. Based on the outcomes of this analysis, Guyana will start a new set of priority investments in drainage and irrigation, sea defences, mangrove restoration, f lood and drought measures to address the potential harm to households and businesses from climate change. LCDS Objective 4: Align with global climate goals Implementing the LCDS will advance progress towards the UN Sustainable Development Goals, as well as a a series of mulilateral, regional and bilateral agreements. Moreover, since the production of the 2009 LCDS, Guyana has discovered oil and gas, which has transformed the country’s development prospects. Guyana will act strategically and responsibly as the sector develops, supporting global energy security while diversifying and decarbonising Guyana’s domestic economy and investing in development priorities for all Guyanese, including health, education and low-carbon opportunities. At the same time, the Government will advocate internationally for a strong global carbon price and the removal of subsidies on fossil fuel to incentivise the lowest carbon, most costeffective oil and gas in the global marketplace in line with the goals of the Paris Climate Agreement - under which there will be demand for decades to come. In parallel, Guyana will advance progressive policy to exceed recognised global standards for flaring and mandate the use of best technology in the Oil and Gas sector to limit its environmental impact.
Title:
Low Carbon Development Strategy (LCDS 2030).
Country:
Guyana
Type of document:
Policy
Files:
Date of text:
Repealed:
No