This story was collaboratively produced by Naomi Parris and Cheflin Paulus.
As global efforts to shift away from fossil fuels gain momentum, Guyana and Suriname—two of the world’s most forested nations—are attempting to balance their expanding oil and gas industries with climate action strategies. A key part of this balancing act involves the use of carbon credits.
What Are Carbon Credits?
Carbon credits, also known as carbon allowances, represent a permit that allows a country or organisation to emit a specific amount of carbon dioxide (typically one ton per credit). These credits are often sold by governments or international bodies to businesses, creating a financial incentive to limit emissions. The system is designed to reduce global greenhouse gas emissions by rewarding preservation and penalising excess.
Forests as Financial Assets
Suriname, with more than 90% forest cover, is among the few countries considered carbon negative, while Guyana is one of several that are carbon neutral. Both nations view their extensive rainforests as critical carbon sinks that can be leveraged to participate in the global carbon market.
In Suriname, the Ministry of Spatial Planning and Environment has been working on a framework to sell carbon credits for over two years. Minister Marciano Dasai has highlighted that this could represent a step toward sustainable development, enabling Suriname to monetise its natural resources responsibly. President Chandrikapersad Santokhi echoed similar sentiments, noting the country’s commitment to climate action during a 2024 government press conference.
According to recent government announcements, Suriname could receive up to US$80 million in 2025 from carbon credit sales. These funds are earmarked for forest preservation and sustainable initiatives such as renewable energy and forest management.
Oil Development and Climate Action
However, this potential income stream exists alongside growing oil and gas ambitions. At the 2024 Suriname Oil and Gas Summit, held in June, there was extensive discussion about fossil fuel exploration off the country’s coast. Neighbouring Guyana, experiencing an oil boom, faces a similar dichotomy.
While these developments could stimulate economic growth, they raise questions about the compatibility of fossil fuel extraction with climate goals. This dual path reflects the complex realities facing countries trying to balance development and environmental stewardship.
Guyana’s Approach to Carbon Credits
Guyana has taken significant steps to formalise its role in the carbon credit market. Through its Low-Carbon Development Strategy, the country secured 7.14 million carbon credits under the Architecture for REDD+ Transactions (ART). These credits, known as TREES credits, have been recognised for reducing emissions from deforestation and forest degradation.
Additionally, Guyana issued the world’s first Paris Agreement corresponding adjustment, a move acknowledged by the United Nations Framework Convention on Climate Change (UNFCCC). These credits are now eligible for use by airlines in the International Civil Aviation Organisation (ICAO)’s CORSIA programme.
Vice President Dr. Bharrat Jagdeo has advocated for robust certification to ensure carbon credits maintain credibility and market value.
“Without proper certification, any country could introduce substandard products, undermining the market,” he said.
Challenges in the Carbon Market
Despite the potential benefits, the carbon credit market is not without its challenges. At COP29 in Azerbaijan, world leaders finalised frameworks for global carbon markets, but concerns remain about how forested countries will navigate this space.
Racquel Moses, UNFCCC Global Ambassador and CEO of the Caribbean Climate-Smart Accelerator, called for stronger safeguards and fair pricing mechanisms. She also proposed the creation of a Global South-led entity, funded by the Global North, to evaluate and manage carbon credit quality.
Expanding the Concept: Biodiversity Credits
Guyana is also exploring the creation of biodiversity credits, inspired by its forest-based carbon credit system. President Irfaan Ali has indicated that the country seeks to set global benchmarks and develop financing mechanisms for biodiversity conservation.
In December, an expedition in Guyana’s remote Acarai-Corentyne Corridor led to the discovery of new plant and animal species, underscoring the country’s biodiversity richness and potential for future conservation-based credits.
Local Perspectives on Renewable Energy
Hydrogeologist Oclaya Verwey has pointed out that carbon credits alone are not enough. She has urged for stronger investment in clean energy technologies, such as solar farms, to ensure a holistic approach to climate resilience.
According to the Ministry of Spatial Planning, Suriname is increasing awareness about climate change impacts and encouraging multi-stakeholder engagement in environmental protection.
A Delicate Balancing Act
Carbon credits offer Guyana and Suriname a pathway to generate revenue while preserving their ecosystems. Yet, the strategy must be carefully managed to avoid greenwashing and ensure long-term climate and social benefits. The challenge for these nations lies not only in accessing markets but in implementing rigorous standards, ensuring community participation, and maintaining transparency.
As both countries continue to explore sustainable finance mechanisms, their experience could provide valuable lessons for other nations with similar aspirations, where the realities of development meet the imperatives of climate action.
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This story was originally published by Guyana Chronicle, with the support of the Caribbean Climate Justice Journalism Fellowship, which is a joint venture between Climate Tracker Caribbean and Open Society Foundations.
