Its sales of carbon credits could generate $4 billion to $5 billion for the country, Jagdeo told an energy conference. Mining and agriculture sustained the economy before Guyana, among South America's most underdeveloped nations, started producing oil in 2019.
Guyana's more than 18 million hectares (44.5 million acres) of forests are estimated to store some 20 billion tonnes of carbon dioxide equivalent. The country aims to maintain 99.5% of its forests.
The decision was not made "based on altruism," Jagdeo said during the second day of Guyana's Energy Conference and Expo.
"We are monetizing these resources and we are utilizing these resources to develop our country," he said.
In December, the government sold carbon credits worth
some $750 million in a multi-year deal to Hess Corp , one
of the three companies producing oil in Guyana through the
Exxon-led consortium.
Guyana would receive more if the price of carbon -
currently estimated at $20 per tonne but with potential to go to
$90 per tonne - rises, he said.
Indigenous communities that preserve the forests are
expected to receive $22 million from the sale as soon as next
week, Jagdeo said.
The agreement between Hess and Guyana was signed under
the United Nations' Reducing Emissions from Deforestation and
Forest Degradation program (REDD).
(Reporting by Sabrina Valle in Georgetown
Editing by Marguerita Choy)
