Hess Corporation, one of the developing partners on the Stabroek Block, signed a landmark agreement with the Government of Guyana today to purchase US$750M in high-quality carbon credits between 2022 and 2032.
This agreement will serve to support Guyana’s efforts to protect the country’s vast forests and provide capital to improve the lives of Guyana’s citizens through investments made by the authorities, in keeping with Guyana’s Low Carbon Development Strategy (LCDS) 2030. In fact, the government disclosed that a minimum of US$112M will go towards supporting the livelihoods of Amerindians who have served as the custodians of the nation’s forests for decades.
President, Dr. Irfaan Ali was joined today by Vice President, Dr. Bharrat Jagdeo and John Hess, CEO of Hess Corporation for a signing ceremony to commemorate this historic agreement.
The multi-year agreement is for 37.5 million REDD+ jurisdictional carbon credits (current and future issuances). These credits will be on the ART (Architecture for REDD+ Transactions) registry and will be independently verified to represent permanent and additional emissions reductions under ART’s REDD+ Environmental Excellence Standard 2.0 (TREES).
Avoiding global deforestation is foundational to the Paris Agreement’s aim of limiting the global average temperature rise to well below 2°C and was one of the major commitments made at the COP26 climate summit, where more than 130 countries, including Guyana, pledged to end deforestation by 2030.
Guyana’s more than 18 million hectares of forests are estimated to store approximately 20 billion tonnes of carbon dioxide equivalent1. Through Guyana’s Low Carbon Development Strategy 2030, the country has a roadmap for preserving its forests, while growing its economy and creating a development pathway that is diverse and includes opportunities for all Guyanese citizens.
The purchase of these carbon credits is an important part of Hess’ commitment to support global efforts to address climate change and for the company to achieve net zero greenhouse gas emissions by 2050. The agreement adds to the company’s ongoing and successful emissions reduction efforts, which are described in Hess’ annual Sustainability Reports.
President Irfaan Ali in his remarks recalled that in 2009, Guyana produced the first LCDS from a developing country. Ali said, “We have stayed the course, and today’s signing represents a massive step forward in showing the world that developing countries can lead the way to global solutions.., I thank John Hess and the Hess Corporation for their continued partnership with and commitment to Guyana.”
The Head of State said this deal goes a far way in proving that Hess is a global leader in accelerating ambition to reverse deforestation, adding that the company also sets an example for others to follow.
CEO John Hess was keen to note that the agreement further strengthens his company’s strategic partnership with Guyana and demonstrates the firm’s long-term commitment to the country.
He said, “Today’s landmark agreement is the result of President Ali’s and Vice President Jagdeo’s leadership and long term vision for sustainable development.
“We admire the efforts that Guyana has undertaken for years to protect its forests and the government’s constant emphasis on practical solutions to climate change, thereby providing a global model for stopping deforestation and preserving forests.”
ABOUT REDD+ & ART
Reducing Emissions from Deforestation and Degradation (REDD+) is a global conservation mechanism created by the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in support of the Paris Agreement. Avoiding global deforestation was one of the major commitments made at the COP26 climate summit, where more than 130 countries pledged to end deforestation by 2030.
Architecture for REDD+ Transactions (ART) operates a robust, secure and transparent electronic system to register REDD+ programmes and record the issuance, transfer, and retirement of serialized verified TREES Credits.
Furthermore, ART is an initiative that seeks to incentivize governments to reduce emissions from deforestation and forest degradation, restore forests and protect intact forests.
The credits to Guyana will be issued under ART’s REDD+ Environmental Excellence Standard 2.0 for the quantification, monitoring, reporting and verification of GHG emission reductions and removals from REDD+ activities at a jurisdictional and national scale, which is known as TREES.
