On February 28, 2024, in a landmark development Architecture for REDD+ Transactions (ART) announced that it awarded Guyana 7.14 million 2021 vintage carbon credits. This monumental achievement positions Guyana as a global leader in the fight against climate change, marking the first instance of carbon credits aligned with the Paris Agreement’s corresponding adjustments being issued. These credits have been authorized for use by airlines in the initial phase of the International Civil Aviation Organization’s (ICAO) CORSIA program, setting a new precedent for international environmental efforts.
The credits, known as TREES (Tropical Rainforest Emission Reductions), were issued in recognition of Guyana’s commendable actions to reduce emissions from forest loss and degradation while preserving one of the most intact tropical forests on the planet. This initiative is part of the jurisdictional REDD+ process, aimed at decreasing emissions through forest conservation on a wide scale.
Guyana’s groundbreaking move authorizes these credits for various compliance and voluntary uses under Article 6 of the Paris Agreement. This includes the pioneering step of making them available to the aviation industry.
The first phase of CORSIA in which 126 countries opted to voluntarily participate in , covers approximately 80% of the aviation sector’s annual emissions
heir 2019 baseline. Moreover, “ all participating airline operators with annual emissions over 10,000 tonnes of CO2 equivalent of greenhouse gas emissions must monitor and report their emissions, and then purchase carbon credits to offer any remaining emissions that exceed a percentage of their 2019 baseline emissions.”
The initiative which was undertaken by Guyana and facilitated through ART’s issuance of TREES credits, is significant given projections that airline operators may require between 100 to 200 million credits for compliance in CORSIA’s first phase. ART is one of only two programs to date that ICAO has approved to supply these essential credits.
Guyana’s Vice President, Dr. Bharrat Jagdeo, underscored the initiative as a continuation of the country’s dedication to fostering a low-carbon economy, initiated in 2009. This vision aims not only to preserve Guyana’s lush tropical forests but also to serve as a model for global forest conservation efforts.
The ART-TREES standard, now recognized by ICAO, bridges the gap between the work of forest countries within the United Nations REDD+ framework and the needs of private sector buyers, ensuring credits’ integrity and adherence to rigorous environmental and social safeguards.
ART’s Executive Director, Mary Grady, expressed her organization’s pride in working alongside the Government of Guyana to navigate the intricacies of the Paris Agreement and ICAO processes successfully. This collaboration has resulted in the issuance of the market’s first CORSIA-eligible credits post-2020, paving the way for other nations to follow suit.
Guyana’s 2021 vintage TREES credits, now heralded for a broad spectrum of uses, represent a significant stride in the global effort to mitigate climate change impacts. The initiative not only highlights Guyana’s environmental stewardship but also sets a pioneering standard for integrating sustainable development with global climate action commitments.