Using Carbon Markets to Protect

Forests at Risk: A Case Study of

Jurisdictional REDD+ in Guyana

The Architecture for REDD+ Transactions’ (ART) standard, The

REDD+ Environmental Excellence Standard (TREES), offers a carbon
crediting pathway to support the country of Guyana to protect its
forests while generating revenue for the priorities of Indigenous
villages and for low-carbon development, creating a new financial
model for countries with tropical forests around the world.

HIGHLIGHTS: JURISDICTIONAL REDD+ IN GUYANA

18 million ha - 87% of TREES Credits are eligible for
Guyana - is covered by use in the VCM, towards Nationally
tropical forest, storing Determined Contributions (NDCs) under
21.8 billion tonnes of CO2e. Article 6.2 of the Paris Agreement and
in the first global compliance carbon
In February 2024, ART issued market, ICAO’s CORSIA.
7.14 million 2021 TREES Credits
to Guyana, and Guyana became The “High Forest, Low Deforestation”
the first government to report crediting approach allows Guyana to
a corresponding adjustment to demonstrate the effectiveness of its
the UNFCCC for the associated jurisdictional REDD+ program and
emission reductions. enables it to conserve its forests as
development pressures increase.
This accomplishment builds
on Guyana being the 1st 15% of revenue from credit sales goes
country in the world to be directly to Indigenous people and
issued TREES Credits by ART local communities for activities of their
in December 2022 – 33.47 choice; 85% of revenue will be used
million verified credits for for land titling for Indigenous villages,
its work to actively protect renewable energy, repairing canals, and
its forests 2016-2020. protecting against climate change.

September 2024 1 www.artredd.org

 Setting a remarkable Gyanana is high
in biodiversity

precedent > 1,200 species of wildlife

including jaguar, giant river
Located in the Amazon Basin otters and harpy eagles
on the northern coast of South
America, Guyana is one of the 6,000 species
most heavily forested countries of plants
in the world. Many of Guyana’s
intact forests are managed by
Indigenous people and local Excellence Standard (TREES),
communities. High in biodiversity managed by the Architecture
– with more than 1,200 species of for REDD+ Transactions (ART).
wildlife including jaguar, giant river In what represents the single
otters and harpy eagles, and 6,000 largest issuance of carbon
species of plants – tropical forest credits in the history of carbon
covers 18 million hectares (44.5 markets, Guyana was issued
million acres) or 87 percent of the 33.47 million TREES Credits
country. It is estimated that this for nationwide climate benefits
forest stores 21.8 billion tonnes of from its forest from 2016-2020.
carbon dioxide equivalent. As with These credits are eligible for use
forests everywhere, Guyana’s are towards Paris Agreement Nationally
GUYANA’S FORESTS
at risk as deforestation pressures Determined Contributions (NDCs)
STORE 21.8 BILLION
continue to increase. under Article 6.2, in the voluntary
TONNES OF CO2E
carbon market, as well as the
Recognizing the importance of its first global compliance carbon
forest and due to measures in place, market, the Carbon Offsetting and
Guyana became the first country Reduction Scheme for International
in the world to be issued verified Aviation (CORSIA), which has
carbon credits in December 2022 set a strong global benchmark
under The REDD+ Environmental for carbon credit quality.

September 2024 2 www.artredd.org

 Continuing this leadership, in to actively conserve its forests as
February 2024, Guyana became development pressures increase.
the first government to be issued Guyana is showing that forests can
emission reduction credits for be valuable when left standing,
which a corresponding adjustment and that it can be a better
has been reported to the United financial decision to take actions
Nations Framework Convention that continue to protect them.
on Climate Change (UNFCCC),
fulfilling the Letter of Authorization Building on its remarkable
for use of the credits under the precedent, Guyana is also
Paris Agreement. Guyana has implementing a broadly supported
submitted an update report benefits-sharing agreement,
GUYANA IS SHOWING to the UNFCCC documenting with all 242 Indigenous villages
THAT FORESTS CAN BE
the corresponding adjustment and communities voting to
VALUABLE WHEN LEFT
to its NDC for 2021 for all 7.14 participate and developing
STANDING, AND THAT
IT CAN BE A BETTER million emission reduction Village Sustainability Plans. This
FINANCIAL DECISION credits verified for 2021. has resulted in substantial funds
TO TAKE ACTION from the transaction of the 2016-
THAT CONTINUES TO Guyana is also the first jurisdiction 2020 carbon credits being sent
PROTECT THEM. to be issued what’s known as “High directly to every Indigenous village
Forest, Low Deforestation” (HFLD) around the country. ART offers an
carbon credits. The TREES HFLD innovative, high-integrity way to
crediting approach enables a protect forests at a jurisdictional
country like Guyana, whose efforts scale while also supporting low-
have resulted in consistently low carbon development for forest
rates of deforestation, to continue stewards and their communities.

September 2024 3 www.artredd.org

 Protecting forests
at risk
Guyana’s historically low However, a jurisdiction’s HFLD
deforestation rate does not make status cannot be taken for
it immune to threats today or in granted. From 2010 to 2019,
the future. For example, there six countries lost HFLD status
are presently 7,200 contracts for – Cambodia, Colombia, Laos,
gold mining exploration that, if Samoa, Sao Tome and Principe,
exercised, threaten 2.9 million and Zambia1. This loss of HFLD
hectares (7.2 million acres) of status serves as a grim reminder:
Guyana’s valuable forests. Guyana Forests cannot be protected
must continue to actively mitigate indefinitely without ongoing
these threats through strong support and incentives.
governance, forest conservation
and ongoing investment in Building on the UNFCCC’s
sustainable livelihoods. international REDD+ program,
this approach offers a conservative
With an annual deforestation market-based method that
rate of less than 0.1%, Guyana captures the significant risks
GUYANA’S ANNUAL
has done an impressive job of that tropical forests in countries
DEFORESTATION RATE:
protecting its forest. Guyana’s like Guyana face, while also
<0.1% sustained conservation efforts addressing issues such as
have allowed the country to retain “leakage,” where decreased
its extensive forest cover, which deforestation in one place leads
means it is categorized as an to increased rates elsewhere.
HFLD jurisdiction under TREES.

1 Presented in: World Bank Group. (2021). Options for conserving stable forests. http://documents1.
worldbank.org/curated/ en/541251635971110855/pdf/Options-for-Conserving-Stable-Forests.pdf

September 2024 4 www.artredd.org

 Establishing a global
endorsing the LCDS. In addition,
in 2023, all 242 Indigenous
villages and communities held

benchmark community meetings and voted

to participate in the REDD+
program and receive funds from
the initial transactions of the
The Government of Guyana After identifying the potential first verified TREES Credits.
operates a Jurisdictional Forest for carbon markets to support
Carbon Credits Program, its climate and economic 15 percent of the revenue
which generates carbon development goals, Guyana from the sale of carbon credits
credits at a nationwide scale, determined ART’s approach is earmarked for investment
following ART’s requirements was the best fit for the country. in community-led activities as
for measurement, monitoring, This decision was built on top decided directly by Indigenous
reporting and verification, as of a strong policy foundation: people and local communities.
well as environmental and the Low Carbon Development The remaining 85 percent of the
social safeguards as defined Strategy 2030 (LCDS), which revenue from the sale of carbon
in TREES. The Program builds was created through extensive credits will be invested in land
on the country’s efforts to national consultations in 2021 titling for Indigenous villages,
maintain consistently low and years of work across the renewable energy, repairing
rates of deforestation, while country. The strategy sets out a canals, and protecting against
also funding low-carbon vision for how to save Guyana’s climate change. In 2023, all
development priorities. forests in service to the world’s 242 Indigenous villages and
battle against climate change. communities in the country
submitted their community-
As with the original LCDS designed Village Sustainability
ALL 242 developed in 2009, Indigenous Plans and already received funds
INDIGENOUS VILLAGES peoples from all of Guyana’s from the sale of TREES Credits. In
AND COMMUNITIES what is quickly becoming a new
regions were consulted during the
HAVE RECEIVED FUNDS
development of the LCDS 2030, global benefit sharing model,
FROM THE SALE OF
which became the framework for villages around Guyana are
TREES CREDITS.
the country’s REDD+ initiative showing that REDD+ finance can
with ART. As a result, on July help improve forest management
15, 2022, the National Toshaos’ and climate resilience, and that
Council, consisting of elected jurisdictional benefit sharing can
representatives of all Indigenous result in funds directly reaching
villages and communities in Indigenous communities to
Guyana, passed a resolution be used as they desire.

September 2024 5 www.artredd.org

 Support for ART in Guyana
“We said long ago that national for all forest countries, not only transformation and central to
or jurisdiction-scale action on those who have deforestation its approach. It is a testament
forests, coupled with access to as part of their development. to incentivizing the value of
global private finance, could ART-TREES provides a platform standing forests in realizing
create solutions that benefit for this kind of ambition the kinds of changes needed,
the peoples of forest-rich across the world – joining an inspiration to the world.
countries while also achieving national efforts with a global Conservation International
global climate goals.” pathway to halt and reverse recognizes Guyana’s unique
HIS EXCELLENCY, PRESIDENT tropical forest loss by 2030.” opportunity to demonstrate
OF GUYANA, IRFAAN ALI PRADEEPA BHOLANATH, SENIOR development aligned with
DIRECTOR FOR CLIMATE AND nature and its continued global
“We are pleased that ART- REDD+, GUYANA’S MINISTRY OF leadership to pursue sustainable
TREES was created to help NATURAL RESOURCES low-carbon development. It takes
accelerate global climate action immense courage to pioneer
- by recognizing what forest “For centuries our ancestors new economic pathways and
countries like Guyana have long have protected the forest there is much for all to learn as
called for: that the time for knowing the importance of it Guyana sets the tone with these
small-scale pilots and projects because it is where we got our bold climate mitigation actions
is long past, the world needs food, medicines and materials that strengthen the connection
jurisdiction-scale action to make to build our homes. Our good between people and nature.”
the required impact, and the stewardship of the forest is CURTIS BERNARD, EXECUTIVE
world also needs to value the being recognized now by the DIRECTOR, CONSERVATION
ecosystem services that tropical government of Guyana and the INTERNATIONAL – GUYANA
forests provide.” world; the financial benefits this
DR. BHARRAT JAGDEO, VICE brings directly to our villages “Without the proper financial
PRESIDENT OF GUYANA and local communities are incentives to value forests
being used to develop our and the actions that protect
“In Guyana, we have always people’s standard of living.” them, there is no guarantee
advocated for tropical forests to DERRICK JOHN, CHAIR, that forests in HFLD areas will
be worth more alive than dead. NATIONAL TOSHAOS COUNCIL remain standing in the long
This means avoiding a centuries- run. Providing a pathway that
old development trajectory “Addressing climate change incentivizes jurisdictions to keep
where trees were destroyed requires responses at scale: their forests standing will create
as countries developed. We wholesale transformation of a more effective and equitable
wanted to ensure payments for economies and sectors are global system for forest
forest-climate services that are needed. Guyana’s bold step protection and restoration.”
national in scope, market-based, to transform its economic MARY GRADY, EXECUTIVE
beneficial to the citizens of development with national DIRECTOR OF THE ART
forest countries, and accessible jurisdiction REDD+ is one such SECRETARIAT

September 2024 6 www.artredd.org

 ABOUT THE ARCHITECTURE FOR REDD+ TRANSACTIONS (ART)

The Architecture for REDD+ Despite universal agreement on

Transactions is a global carbon the essential role of forests in
crediting program that certifies achieving the goals of the Paris
high-integrity emission reductions Agreement and reversing the worst
and removals from protecting and effects of global warming, forests
restoring forests at scale. ART’s are being lost at alarming rates.
mission is to serve as a global ART helps to urgently mobilize
quality benchmark for jurisdictional capital at scale for protecting
REDD+, providing the confidence and restoring tropical forests.
needed in the integrity of emission Collectively, these actions can
reductions and removals from contribute up to one third of the
forest protection and restoration climate results the world needs
to unlock finance at scale for over the next two decades.
ambitious climate action and
to incentivize governments For more information about
to achieve those results. ART visit www.artredd.org.

September 2024 7 www.artredd.org