Norway clears US$35M for Guyana

The Government of Norway on Friday announced the latest payment under the Guyana-Norway forests and climate change partnership of US$35 million.

Norway will pay Guyana the US$35 million for the global climate services provided by its forest during 2012. The latest payment will bring total funds earned under the Partnership to US$150 million.

In an address to the nation, President Donald Ramotar said the announcement by Norway is also a strong rebuttal to those who have tried for several years to kill the Low Carbon Development Strategy and the Guyana-Norway partnership. “For many years, vested interests in Guyana tried repeatedly to prevent our country from receiving this money from Norway. On failing to do so, some politicians tried in three successive national budgets to stop the money from being invested in our people’s future. More recently, they attempted to kill the flagship of the Low Carbon Development Strategy, the Amaila Falls Hydro Project. I hope that they will now abandon their efforts to destroy one of Guyana’s most pioneering national initiatives,” the Guyanese leader said.

He said Guyana is on the threshold of achieving what few countries in the world have managed. “We should stop to reflect on the fact that we have spent five years building the foundations of a genuinely low carbon economy. We are maintaining 99.5 per cent of our forest, and showing the world that it is possible to do this while simultaneously generating jobs and economic growth from sustainable forestry and mining practices. New low-carbon economic sectors are growing fast; small businesses are creating low-carbon jobs; Amerindians are achieving secure tenure over their land; and we are starting to invest in critical flood protection infrastructure.”

Global injustice

Ramotar said the LCDS is grounded in a recognition that climate change is a clear expression of the inequality and injustice that exist in our world – as a problem primarily caused by rich countries, but whose negative impact is felt primarily by poor countries. He reminded that five years ago, Guyana was one of the first countries in the world to set out a vision on what practical steps were needed to begin correcting this global injustice, and called on the world to act before it was too late.

Setbacks

President Ramotar stressed that earning the funds through the partnership with Norway has not been easy. “But we prevailed against these setbacks, and money is now flowing into our priority investments – both from our own budgetary resources and from the money we have received from Norway. Most of this money is now allocated to transformative projects, and in most cases, it is flowing to create real benefits for Guyanese.”

Ramotar told the nation that over 11,000 Amerindian homes have electricity for the first time – powered by solar units. He said low-carbon industries are growing fast – ecotourism in the Rupununi is growing by 20 per cent a year; “our business process outsourcing sector has more than doubled employment in less than five years, and we are seeing innovative initiatives in agricultural development. We can become the world’s most inclusive digital society as 90,000 vulnerable households gain access to computers and training.”

He said using money received from Norway for climate services, “we are working with local banks and other financial institutions to stimulate the creation of 2200 low carbon jobs over three years in small businesses and vulnerable communities. GBTI has started to lend money to local entrepreneurs as part of this programme, I want to pay tribute to their initial efforts, and I look forward to the other private banks following suit.”

The payments from Norway, he said, are also enabling the advancement of the LCDS Amerindian Development Fund. “One hundred and eighty-seven Amerindian villages, communities and settlements produced impressive Community Development Plans. In the last year, 26 of them received funding through this programme – creating low-carbon opportunities in ecotourism, sustainable agriculture and manufacturing. In the coming year, the remainder of the plans will start to be implemented. “

President Ramotar said individual examples of local leadership are starting to emerge in communities across the country – such as the eco-lodge in Santa Mission which was funded through the LCDS Amerindian Development Fund, and is enabling the community to leverage its already attractive ecotourism offerings. “Thanks to the fund, in the village of Karrau, the community is cultivating five acres of cash crops and has completed their processing facility to focus on the production of farine and tapioca from cassava,” Ramotar said.

Since 2009, Norway has been contributing to Guyana’s efforts to enhance economic development while maintaining over 99.5 per cent of its 185, 000 square kilometre forest. Friday’s announcement of the US$35 million payment to Guyana is based on Guyana’s deforestation rate in 2012, as well as the country’s progress on indicators that will enable agreed goals for forest governance.