Page 4 - LatAmOil Week 49 2022

LatAmOil COMMENTARY LatAmOil

Signing ceremony in Georgetown on December 2 (Photo: DPI.gov.gy)
Guyana in carbon credit

agreement with Hess

The US independent has agreed to buy $750mn worth of TREES credits covering the 2016-2032
interval in a deal that has the potential to make the entire Stabroek project carbon-neutral

GUYANA has chalked up two significant airlines for compliance with the International
achievements on the decarbonisation front over Civil Aviation Organisation’s [ICAO] global
WHAT: the last week. emission reduction programme, CORSIA, as
Guyana has struck an On December 1, it became the very first well as for use toward voluntary corporate cli-
agreement with Hess on country in the world to be issued jurisdictional mate commitments,” the statement explained.
the sale of 37.5mn tCO2e credits by the Architecture for REDD+ Trans- The issuance of the TREES credits was fol-
in carbon offsets by 2032. actions (ART), an organisation that registers, lowed by the signing of an agreement between
verifies and delivers carbon credits that are the Guyanese government and Hess, the US
WHY: specifically designed to combat deforestation independent that holds a non-operating stake
The agreement follows up within the UN-supported REDD+ (Reducing in the offshore Stabroek block. The terms of the
on a $250mn deal made
with Norway in 2009. Emissions from Deforestation and forest Deg- agreement, which was signed in the presence of
radation) framework. Guyanese President Irfaan Ali and Hess CEO
WHAT NEXT: In a statement, ART reported that it had John Hess, obligate the US-based company to
The oil company will now issued Guyana 33.47mn worth of TREES cred- purchase no less than $750mn worth of carbon
be directly involved in its – that is, credits that comply with its Environ- credits from Georgetown over a 10-year period.
Guyana’s decarbonisation mental Excellence Standard 2.0 – covering the This is equivalent to 30% of the carbon cred-
efforts. 2016-2020 period. its that Guyana has available to sell, according
“These serialised credits, listed on ART’s to Guyana’s Vice President Bharrat Jagdeo, who
public registry, are available to buyers on the was also present at the signing ceremony in
global carbon market, including for use by Georgetown.

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