On 22 August 2024, RCC Caribbean and the Issue-based Coalition (IBC) for Climate Change and Resilience in Latin America and the Caribbean co-hosted a webinar aimed at enhancing understanding of carbon pricing for the UN Resident Coordinator's Office in Guyana and facilitating discussions on Article 6's role in harmonizing international carbon markets. 

Background

As countries prepare for a new submission cycle of their Nationally Determined Contributions (NDCs 3.0) to meet the temperature targets outlined in the Paris Climate Change Agreement, there is increasing momentum to implement carbon pricing as a strategy for reducing emissions and promoting investment in cleaner alternatives. Various stakeholders, including economists, businesses, governments, NGOs, and international organizations like the World Bank and IMF, advocate for carbon pricing as a crucial tool for transitioning to a low-carbon economy. UN Secretary-General António Guterres has emphasized the need for significant progress in this area. By placing a price on carbon, governments can signal to investors the value of low-carbon investments while allowing polluters to choose between reducing emissions or continuing their activities at a cost. Guyana, with approximately 18.4 million hectares of forest, has emerged as a leader in monetizing its forest climate services, signing a landmark agreement with Norway in 2009 that generated over $200 million. The country plans to sell $750 million in REDD+ credits by 2030. Guyana's Low Carbon Development Strategy 2030 aims to capitalize on ecosystem services and integrate its forest climate services into international carbon markets, particularly those aligned with Article 6 of the Paris Agreement. Against this backdrop, the RCC Caribbean and IBC on Climate Change and Resilience to facilitate enhancing understanding of carbon pricing for Guyana and facilitating discussions on Article 6's role in harmonizing international carbon markets.

Objectives

• Deepen the comprehension of carbon pricing mechanisms and their role in global climate action.
• Showcase Guyana's leadership in carbon pricing, including the submission of the Article 6.2 Initial Report and the use of emissions reductions projects to benefit local communities.
• Discuss the integration of carbon pricing into national policies and market-based approaches like REDD+.
• Emphasize the strategic importance of Article 6 for leveraging international carbon markets.

Target Audience

The session attracted over 30 attendees. Representatives from the UN system, including the UN Resident Coordinator's Office in Guyana, UNEP, UNDRR and UNFCCC.

Key outcome

• Provided information on carbon pricing instruments and their role in the implementation of NDCs.
• Provided knowledge of Article 6 instruments and the strategic.
• Outlined Guyana's 2030 Low Carbon Development Strategy and the use of international carbon markets to achieve national climate goals.