Guyana's Finance Minister Claims Economic Growth and Environmental Responsibility Can Be Complementary

The Guyana Times reports that Dr Ashni Singh, the Senior Minister with Responsibility for Finance, asserted that Guyana's economic expansion is being realized in a sustainable manner, with sustainability encompassing all its aspects, including fiscal and debt sustainability, as well as a very strong environmental dimension. Dr Singh shared these views during a recent appearance on a special edition of the Starting Point podcast, where he discussed the People’s Progressive Party/Civic (PPP/C) Governments' efforts toward Guyana's sustainable economic development over the years.

Dr Singh indicated that both the current and previous PPP/C Governments have dedicated significant policy space and effort to addressing these two specific issues. He posited that while laying the groundwork for robust economic growth is one priority, another is ensuring that this growth is achieved sustainably, considering factors like climate change.

Singh noted that the consistently strong economic performance of the local economy, and the anticipated continuation of this performance for the remainder of the year, is documented in both local reports and publications from international bodies such as the World Bank and the International Monetary Fund (IMF).

While Guyana has maintained a trajectory of long-term growth fueled by careful fiscal policies, the Finance Minister emphasized that this success would not have been possible without also accounting for environmental and climate realities. Guyana recognized the necessity of pursuing these two agendas concurrently, a concept reflected in its Low Carbon Development Strategy (LCDS), which was created by former President Bharrat Jagdeo to combat climate change, safeguard the nation's extensive rainforest, and foster a low-carbon economy.

Under the LCDS framework, Guyana entered into an agreement with Norway in 2009, which provided the country with US$250 million for preserving its large forests. When the Irfaan Ali-led PPP/C Administration took office in 2020, the strategy was updated to LCDS 2030, placing emphasis on securing payments for Guyana's forest climate services.

Through these initiatives, Guyana became the first country globally to receive jurisdictional certification under the ART-TREES in 2022, and subsequently secured a significant carbon credit sale agreement worth US$750 million with the U.S. energy company, Hess Corporation. Since then, the country has sold its certified carbon credits to several other major international corporations, including the technology company Apple Inc.

Furthermore, Guyana obtained the world's first certification under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which is a global emissions reduction program managed by the International Civil Aviation Organisation (ICAO). To date, the country has sold its CORSIA certified carbon credits to over 20 airlines through a partnership with the International Air Transport Association (IATA).

Minister Singh stated that Guyana has been leading the global conversation and developing innovative worldwide solutions to climate change challenges for a considerable time, not just recently. He compared this sustained effort to the economic performance, noting that both have been achieved over a long duration with notable success. The Finance Minister contended that Guyana has established itself as a global leader in this area, demonstrating that economic prosperity and environmental health are not mutually exclusive.

He reiterated that economic growth and environmental responsibility can function as complementary objectives if managed with the correct policy approach, and he suggested Guyana has served as an example of this. Dr Singh added that any discussion regarding long-term economic growth must incorporate climate sustainability, biodiversity, nature, and the environment, because the world's existence depends on climate sustainability, which requires dedicated climate action and protection of natural assets like forests and biodiversity.