Suriname says it has started this month trading emission reduction carbon credits and that the initiative is part of the green development strategy that the government is developing to achieve sustainable economic growth.
The Ministry of Spatial Planning and the Environment (ROM), which first announced plans to trade carbon credits last year, said gave a presentation to the members of the Standing Committee of ROM of the National Assembly on July 30, this year.
During the presentation, the committee was told that the profit-sharing mechanism is laid down in an administrative procedure as that would ensure that the revenues from the sale of carbon credits are distributed fairly between investors, developers and local communities. ROM said that there would be transparent and regular reporting on the progress and impact of emission reduction projects.
Carbon credits are tradable certificates that represent a reduction of one ton of carbon dioxide (CO₂) or a comparable amount of another greenhouse gas. The carbon credits are used to offset and reduce greenhouse gas emissions.
Greenhouse gases are gases in the atmosphere that trap heat and therefore contribute to the greenhouse effect.
Human activities have increased the accumulation of greenhouse gases. This causes additional warming and climate change. This increased effect leads to more extreme weather, rising sea levels and other environmental problems.
Companies and governments can buy carbon credits to restore their own greenhouse gas emissions. The sale of carbon credits helps to make investments in sustainable projects, such as renewable energy, energy efficiency, forest conservation and other environmentally friendly initiatives.
ITMO Ltd and BancTrust Investment Bank Limited (BancTrust), together with the Suriname government, have announced the bid (1.5 mt CO2eq) of the world’s first UNFCCC-approved Paris Agreement verified Article 6 ITMOs.
These are carbon reduction ITMOs for the year 2021 that represent rainforest conservation for the entire country of Suriname and were developed after three years of due process and due diligence with Suriname and the United Nations Framework Convention on Climate Change (UNFCCC).
“We are very proud to issue the world’s first Carbon Credits under the Paris Agreement, as more and more companies and investors are calling for carbon credits of the highest science and carbon integrity,” said ITMO Capital’s chief executive officer, Ian Robinson.
BancTrust chief executive, Carlos Fuenmayor, said “we are pleased to participate in the world’s first ITMO issuance as global investors demand a more robust and transparent carbon credit market.”
Demand for Paris Agreement-compliant Carbon Credits is exponential, as more companies and countries are required to meet their net zero targets by 2030 and 2050 by reducing or eliminating carbon emissions.
Guyana is the other Caribbean Community (CARICOM) country involved in carbon credit sales with Georgetown indicating last week that this year, the total revenue received from carbon credit sale is US$87.5 million, which is less than last year.
Guyana’s low carbon development strategy (2030) commits 15 percent of all revenues from carbon credit sales to Amerindian villages for investment in village development activities. In 2023, the country received US$150 million and 15 percent meant that US$22.5 million had been allocated to the 242 Indigenous villages.
In July, President Chan Santokhi had underscored the importance of pursuing a balance between economic growth and environmental protection, adding that the use of natural resources, such as oil and gas, will be done in a responsible way.
At the same time, investments are being made in renewable energy sources and technologies that reduce CO2 emissions. Suriname wants to achieve this with the help of a green development strategy.