Guyana to tap another US$40M from Norway forest funds

Guyana expects to receive the second tranche of finances, US$40 million, under the Norway Climate deal early this year, to advance its agenda under the Low Carbon Development Strategy (LCDS).

This will be added to the existing US$30 million that was deposited into the Guyana REDD+ Investment Fund (GRIF). Finance Minister Ashni Singh has said that Budget 2011 provides for a total of Gy$14.4 billion, which is equivalent to the US$70 million from these two disbursements, being expended on the transformative LCDS projects identified.

“These projects will have a transformational effect on our economy at the national level as well as the village level,” he told the National Assembly on Monday while presenting the 2011 National Budget.

Prominent among the projects will be the provision of equity financing for the Amaila Falls Hydropower Project (AFHP), support to the Amerindian lands demarcation process; rural electrification, financing for small and microenterprise development, and support to the Amerindian Development Fund to finance indigenous community projects.

“Efforts will continue to advance our model of avoided deforestation, and to build partnerships regionally and internationally while also seeking to broaden the range of partners to provide financial support for the LCDS,” the finance minister outlined.

According to Dr Singh, this has been one of the first payments for forest climate services received by a developing country, and it represents a new economic opportunity for Guyana.

It is Guyana’s expectation that its leadership and advocacy in these areas will see refinement of this model (LCDS) until one is achieved that is fully reflective of the principles of payment for climate services globally.

He reflected on the challenges faced over the last year in actually implementing the strategy that has attracted the attention of many worldwide. “In 2010, important progress was made,” Dr Singh declared.

This country’s advocacy has paid off, with the United Nations Framework Convention on Climate Change Conference in Cancun shaping a new international deal with respect to REDD+, which recognises the role of forest conservation and sustainable forest management in mitigating climate change, making such activities eligible for climate financing.

The Cancun decision also establishes an adaptation framework and a technology transfer mechanism to help developing countries adapt to the adverse effects of climate change, and made provision for climate financing of up to US$30 billion by 2012, and US$100 billion annually by 2020.

“In 2011, Guyana will continue to advocate a strengthening of the REDD+ decision to include market mechanisms for REDD financing, the raising of emissions’ reduction targets by developed countries, and the operationalising of the administrative and financing mechanisms to disburse the financing that was pledged,” the finance minister committed.