Jagdeo hails Norway forest deal as ‘our Copenhagen’

Guyana’s US$250M five-year forest preservation deal with Norway was yesterday hailed as a “watershed moment” in this country’s history by President Bharrat Jagdeo who said it should be treated as a national achievement.

President Bharrat Jagdeo and Norwegian Minister of International Development and the Environment, Erik Solheim, shake hands after the completion of the signing of the Memorandum of Understanding between Guyana and Norway on Monday (GINA photo)
President Bharrat Jagdeo and Norwegian Minister of International Development and the Environment, Erik Solheim, shake hands after the completion of the signing of the Memorandum of Understanding between Guyana and Norway on Monday (GINA photo)

A beaming Jagdeo, who has lobbied on a global level for such a pact, told reporters at a press briefing at the Office of the President that the figure is more than the combined loans and grants Guyana receives on an annual basis from the World Bank, the Inter-American Develop-ment Bank, the Caribbean Development Bank and the European Union. Noting that this is another first by Guyana, he expressed appreciation for the significant pledge by Norway. “It is sector-leading, it is visionary and Norway should be commended for this”, he asserted.

Guyana and Norway on Monday inked a Memorandum of Under-standing (MOU) that will see Oslo paying US$30 million ($6.2 billion) next year and potentially up to US$250 million ($51.7 billion) by 2015 for Guyana to preserve its forests. Under the partnership, Guyana will accelerate its efforts to limit forest-based greenhouse gas emissions and protect its rainforest as an asset for the world. Norway will provide financial support to Guyana at a level based on this country’s success in limiting emissions. This will enable Guyana to start implementing its Low Carbon Development Strategy (LCDS).

Yesterday, Jagdeo said that the deal could serve as a model and hopefully influence climate change discussions in Copenhagen, Denmark where a new global climate deal is expected to be hammered out next month. The crucial talks could see agreement on a mechanism for forest-rich countries like Guyana to be paid to preserve its forest, a concept known as reducing emissions from deforestation and forest degradation (REDD+).  While not optimistic that an adequate agreement for a global funding mechanism for REDD will be secured in the Denmark talks, Jagdeo asserted that with this deal, Guyana is not vulnerable or dependent on the outcome there.  “This is our Copenhagen”, he stated. He pointed out that even if agreement is secured in Denmark, it will take almost four years before funds would flow to countries like Guyana.

And, he pointed out, should a better agreement be achieved in Copenhagen, there is a clause in the MOU, which says that the deal will be adjusted to include this. The president declared that this pact sends a signal that there are willing partners on the part of the developed world who are prepared to invest in such schemes.

Meantime, the Head of State noted that as a monitoring, reporting and verification (MRV) system for the forest is developed and as more accurate assessments of the carbon stock in each hectare of forest are determined, it is anticipated that the money received will increase significantly.
It is not going to be US$50M per year and it may not be US$600M annually but may be about US$300 to US$400 per annum, according to the president.

There are a number of conditions that Guyana will have to fulfill to ensure that the funds keep flowing such as keeping the process transparent and open and using the funds accountably and transparently.

Additionally, sustainable practices in forestry and mining will have to be ensured. Jagdeo expressed confidence that Guyana can achieve these requirements.

He further said that everyone will benefit from the agreement noting that the money could be spent on education, health, stimulating new investments, hydro-power “and a whole range of other things to catalyze all of these things”. He said that some money will go to development in indigenous communities, some on adaptation to climate change and on trying to catalyze other investment opportunities. He pointed to the broad thematic areas outlined in the LCDS, which will be finalized in a few weeks time. Once specific projects are outlined, these will be made public and there will be a transparent process to use the resources. At no time in Guyana’s history has so much money been pledged to this country in a single occasion, the President noted.

As to problems which could be encountered, Jagdeo said that one is if deforestation levels rise beyond the reference level. He noted that the reference level is higher than the current rate of deforestation, which means that Guyana can continue to extract. “We still have a big allowance to continue to cut trees down for forestry and mining and stuff like that but it has to be limited to probably somewhere around a historic level”, he had earlier noted.

But should deforestation rates rise above the reference level then resources will be lost. Conversely, should the deforestation level drop then resources will increase.

The unaccountable use of money was another vulnerability identified by the President but he expressed confidence that Guyana will be able to meet the requirements.

In praising Norway, he stated that they are not only speaking about the problems of climate change but along with Guyana, worked to come up with a practical model and provided financing for this model.

He declared that while there are common features between this and similar agreements signed with other countries, in Guyana’s case, it is about avoiding deforestation while for countries like Brazil and Indonesia, which have had traditionally high rates of deforestation; their focus would be on cutting the deforestation rate.