The International Monetary Fund (IMF) applauded Guyana’s comprehensive Low Carbon Development Strategy (LCDS) 2030 which outlines plans to combat climate change.
It said the strategy commits Guyana to the reduction of emissions by 70% before 2030 mainly via maintaining vast forest coverage and monitoring closely, oil emissions on a sectoral and additive basis.
Importantly, the strategy states that Guyana is committed to addressing climate change challenges by shifting towards renewable energy sources, hydropower and solar, while entering the international carbon credits market.
The IMF was keen to note that Guyana’s vast forests and low deforestation rate support its effort to mitigate climate change, which has benefited from the REDD+ Investment Fund (GRIF), established through an agreement with Norway, and more recently via a new proposal to join the LEAF (Lowering Emissions by Accelerating Forest Finance) Coalition.
According to LCDS 2030, starting in 2022, Guyana can access market-based mechanisms for forest climate services that include private, as well as international public sector financing. This will enable a pathway to transition from the existing Guyana-Norway partnership and increase the value of sustainably managing Guyana’s forests.
The LCDS also recognises the urgent need for investment in the transition to clean and renewable energy and to strengthen resilience to floods.
IMF staff said they strongly support the authorities’ goals as practicably outlined in the document to transform the economy, address development needs in an inclusive way, and protect the long-term economic well-being of the country.