Finance Minister Dr Ashni Singh has argued that Guyana's booming economy and its environmental record are two sides of the same coin, saying the country has proven that prosperity and climate responsibility can advance together rather than compete.
Speaking during a recent appearance on a special edition of the Starting Point podcast, as reported by INews Guyana on October 25, the Senior Minister with Responsibility for Finance said successive PPP/C governments have deliberately built policy around both objectives at once.
A policy built on two tracks
For a number of years, this Government and indeed previous People's Progressive Party/Civic Governments have expended a lot of time and effort and devoted a lot of our policy space to addressing exactly these two issues, Dr Singh said.
On the one hand, ensuring that we lay the foundation for strong economic growth, and secondly, ensuring that that strong economic growth is achieved in a sustainable manner, with sustainability interpreted in all of its dimensions, including fiscal and debt sustainability, but also the very strong environmental dimension to sustainability, because it's impossible to speak of sustainability without taking into consideration factors such as climate, the Minister posited.
According to Dr Singh, the local economy's consistently strong performance and its anticipated continuation for the rest of this year are well documented in local reports and in publications from leading institutions such as the World Bank and the International Monetary Fund. The IMF has noted that Guyana's economy continues to grow rapidly, driven by strong oil and non-oil activity, with the outlook remaining highly favourable, while calling for continued diversification and inclusive development, as Kaieteur News reported this week.
From the Norway deal to carbon credits
The Minister pointed out that Guyana's growth trajectory, driven by fiscal policies he described as prudent, could not have been achieved without also considering climate and environmental realities. He said Guyana long recognised the importance of pursuing both agendas simultaneously, a stance reflected in its Low Carbon Development Strategy (LCDS), the national policy framework crafted by former President Bharrat Jagdeo that aims to combat climate change, protect the country's vast rainforests, and build a sustainable, low-carbon economy.
The LCDS produced one of Guyana's earliest wins on the international stage. In 2009, under the original model, Guyana struck a deal with Norway that saw the country benefit from US$250 million for keeping its forests intact.
When the Irfaan Ali-led PPP/C administration took office in 2020, the strategy was revised into LCDS 2030, with emphasis on securing payment for Guyana's forest climate services. The results followed quickly.
Guyana became the first country in the world to obtain jurisdictional certification under ART-TREES in 2022, and later secured a landmark US$750 million carbon credit sale agreement with the American energy major Hess Corporation. Since then, the country has sold certified carbon credits to a number of other major international companies, including tech giant Apple Inc.
A first in aviation carbon markets
Guyana also secured the world's first certification under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), the International Civil Aviation Organisation's global emissions reduction programme. To date, the country has sold its CORSIA-certified carbon credits to more than 20 airlines through a partnership with the International Air Transport Association.
Guyana has been at the forefront of the global discourse and the devising of innovative global solutions to the challenges of climate change, Dr Singh said. We've been at the forefront, at the intellectual cutting edge, at the policy cutting edge and at the implementation and execution cutting edge...for a long time, not yesterday, not the day before yesterday. Just like our economic performance is not a one-year occurrence. We've been doing this for a long time and achieving remarkable success.
Why the argument matters for investors
The Minister's framing carries weight beyond the climate debate. For a small economy attracting record foreign investment, the message is aimed in part at international partners and markets: Guyana is open for business, and its environmental credentials are presented as an asset rather than a constraint. President Irfaan Ali has made a similar argument, saying Guyana has struck a balance between economic growth and environmental sustainability that few countries can claim, according to the Guyana Chronicle.
The government's case rests on a simple proposition: markets reward predictability, and a country that monetises its standing forests through verified carbon credits has created a revenue stream that does not depend on extracting them. That is a policy posture consistent with economic freedom, letting private buyers, whether airlines or technology firms, pay voluntarily for a service Guyana's forests provide.
What we have been doing in Guyana demonstrates that economic growth and environmental responsibility need not be conflicting objectives but instead can be complementary objectives, if approached from the right policy posture, Dr Singh said. And I think we've been able to achieve that in Guyana and demonstrate it: that economic growth and prosperity and climate responsibility and sound climate policies need not necessarily conflict with each other. In fact, they should not, and they do not, if done properly. And I think we've been a good example of that.
Any conversation about the long term has to incorporate into it climate sustainability, biodiversity, nature and the environment, because the world literally exists, or existence depends on climate sustainability, he added. And climate sustainability can only be realised with dedicated climate action and action to protect our natural assets of the world, including our forests and including the rest of our biodiversity.
The open questions
The Minister's confidence is not universally shared. Critics of carbon markets have questioned whether credit sales genuinely reduce global emissions or simply shift responsibility onto buyers, and opposition figures have pressed the government for greater transparency on how carbon revenues are spent. The administration answers that the funds are channelled into climate adaptation and community projects under LCDS 2030.
What is beyond dispute is the arithmetic. Guyana has so far converted its forest cover into more than US$1 billion in committed carbon and forest deals, from the 2009 Norway agreement to the Hess sale, while posting some of the fastest growth rates in the world. The government's wager is that the two records reinforce each other, and the next test will be whether the credit sales and the growth they accompany continue to command international confidence.
Frequently asked questions
What is the Low Carbon Development Strategy?
It is Guyana's national policy framework, originally crafted by former President Bharrat Jagdeo, that aims to combat climate change, protect the country's rainforests, and build a sustainable low-carbon economy. It was revised into LCDS 2030 under the current administration.
How much has Guyana earned from carbon credits?
Guyana secured a US$750 million carbon credit sale agreement with Hess Corporation, following a US$250 million forest deal with Norway in 2009. It has also sold credits to companies including Apple and more than 20 airlines.
What is CORSIA certification?
CORSIA is the International Civil Aviation Organisation's global emissions reduction programme. Guyana became the first country in the world to obtain certification under the scheme.