Guyana Vice President Dr. Bharrat Jagdeo has revealed that ExxonMobil has shown no interest in purchasing Guyana’s carbon credits. When questioned on the issue, Jagdeo remarked, “We raised this matter with them. They have not been positively inclined to do that.”
During an October 6 press conference, the Vice President was further probed on whether ExxonMobil’s reluctance is indicative of the quality of the credits. In response, he clarified, “No, no. The consortium is made up of several owners… One of the co-venturers in that consortium [Hess] bought US$750 million worth of carbon credits because of their quality, and at a price that is several times multiple of the voluntary market, the price for similar credits traded in the voluntary market, because there is no formal compliance market for this.”
Hess Corporation’s agreement with the Guyana government sees it purchasing 37.5 million high-quality REDD+ carbon credits over a ten-year period from 2022 to 2032, amounting to a minimum of US$750 million. This purchase aims to support Guyana’s Low Carbon Development Strategy 2030.
The credits, which represent the reduction or removal of one metric tonne of CO2e emissions by Guyana’s conserved forests, represent an offset up to 37.5 million tonnes of CO2e for Hess. To contextualise, Hess Corporation’s total equity Scope 1 and 2 GHG emissions for 2022 stood at approximately 3.9 million tonnes, indicating that the carbon credits they aim to purchase could offset their 2022 emissions nearly 10 times over.
Jagdeo said it does not have bearing on the quality of Guyana’s credits, that Exxon has opted not to make a purchase. “Globally, we recognise it as the best quality forest carbon, so it doesn’t matter… We have had interest from a number of people, we are being very cautious before we sell…”
Discussing Exxon, he said every business has its own model. “Exxon says they are investing in carbon capture and storage, and therefore that’s their contribution to the fight against climate change.”
While he believes the major should do more, he said Exxon has indicated a willingness to invest in other initiatives, such as mangrove conservation and reforestation.
ExxonMobil had replanted the mangrove vegetation cleared at the Ogle foreshore, East Coast Demerara for the landing of its fibre optic cable. SBM Offshore has also invested in mangrove reforestation in Guyana.
