Hess Corporation makes US$75 million forest-saving payment to Guyana

Hess Corporation, a leader in deepwater development and production, offshore drilling and project delivery having originated from the United States of America, made its first payment of US$75 million to Guyana as per the REDD+ TREES credits. The delivery of the first payment follows one month after Hess Corporation made an agreement to purchase carbon credits for a minimum of US$750 million. Vice President Dr. Bharrat Jagdeo outlined on Tuesday, that the first payment represents US$37.5 million for 2.5 million ART-TREES credits from 2016. This came at a price of US$15 per tonne of carbon dioxide equivalent. Further, US$37.5 million for 2.5 million ART-TREES credits from 2017 at a price of US$15/tonne of carbon dioxide equivalent were included. As per his statement, it read, “Two further payments of US$37.5 million each will be made during 2023 – one in January and one in July – bringing the total amount available for appropriation in this year’s National Budget to US$150 million.” With this, there is the implication that oil revenues and funds from the sale of Guyana’s carbon credits are the most major sources of finance for the 2023 National Budget. This will be done in fulfilment of the law which stipulates that the Minister of Finance shall request the National Assembly to approve withdrawals from the Consolidated Fund, which shall be included in the Annual Budget Proposal. The issuance of carbon credits has oversight from the Low Carbon Development Strategy (LCDS) 2030 and Resolution No. 45, adopted by the National Assembly on August 8, 2022, the National Assembly, including through its Committees, where all national revenues received from forest climate markets and managed via the Consolidated Fund through the budgetary process are observed.

Source(Image: Gornyakova, Adobe stock, Newsroom)

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11 Jan 2023 17:45 | by anaraine