New Initiative Launched in Guyana to Attract Investment in the Forest Sector

GEORGETOWN, Guyana – Guyana has participated in the launch of the Financing for Forests (F4F) programme marking the start of a five-year partnership to support the country in advancing its agenda to value its standing forests and attract sustainable, long-term investment into the forest sector, in line with the Low Carbon Development Strategy (LCDS 2030).

The launch was undertaken in collaboration with the European Union and the Global Green Growth Institute (GGGI).

According to a GGGI statement issued here on Tuesday the Financing for Forests is a Euro10 million programme funded by the European Union under its Global Gateway strategy and implemented by GGGI in four partner countries, namely Guyana, Colombia, Lao PDR and Mongolia.

In Guyana, the programme forms part of the Forest Partnership between the European Union and Guyana and runs to 2030. It is designed to help mobilize new and additional finance for the forest sector, strengthening the conditions that allow private and commercial investment to flow into sustainable forest management, restoration and biodiversity conservation, while keeping Guyana’s forests standing.

Guyana is a High Forest Low Deforestation (HFLD) county, with one of the lowest deforestation rates, and is widely recognized for its leadership in forest climate services pioneered under the LCDS 2009.

Financing for Forests will build on these strong national foundations, working alongside the Government and partners to develop new financing instruments and to ensure that a wider range of forest enterprises, communities and investors can take part in, and benefit from, sustainable forestry.

“Guyana has shown the world what is possible when a nation places the value of its standing forests at the heart of its development,” said Dr Mallé Fofana, Deputy Executive Director of GGGI.

He said that Financing for Forests is a partnership built firmly on Guyana’s own priorities.

“With the support of the European Union, GGGI is proud to provide technical support as Guyana continues to lead, helping to turn that leadership into lasting financial systems that are owned by Guyana and can serve as an example for other forest nations.”

The programme is anchored in strong national ownership. Over the coming months, the Guyana government and GGGI will jointly appraise a longlist of potential forest finance instruments before confirming priorities together.

Areas currently indicated for further consideration include biodiversity credits and a trust fund established under the Forests Act, each to be taken forward only through joint evaluation with the Government and in alignment with the LCDS 2030, Guyana’s Nationally Determined Contribution and its national biodiversity commitments.

“Guyana has long been a champion of keeping its forests standing, and the European Union is proud to stand alongside it,” said Joan Nadal Sastre, First Counsellor, European Union. “Through the Forest Partnership between the European Union and Guyana, and as part of our Global Gateway investment, Financing for Forests will help mobilize the finance needed to reward that leadership and deliver lasting benefits for Guyana’s forests and its communities.”

In Guyana, Financing for Forests will focus on designing and piloting the financial instruments and enabling conditions needed to mobilize sustainable investment into the forest sector, in line with the priorities set through the LCDS 2030.

By strengthening the way Guyana values and finances its standing forests, the programme aims to help attract commercial and private capital, support forest enterprises and communities, and anchor forest finance with national planning. The initiative also complements ongoing European Union support to forest governance and value chains in Guyana.

“This programme reflects Guyana’s commitment to development along a low carbon pathway, and to ensuring that the value of our forests continues to work for our people,” said Dr Pradeepa Bholanath, Senior Director, Climate Change in the Ministry of Natural Resources.  “Through the Low Carbon Development Strategy, Guyana has demonstrated global leadership in valuing forest climate services. Financing for Forests will complement this work by helping us design instruments that channel sustainable investment into our forest sector and deliver real benefits for forest communities.”

The statement said that going forward,  the immediate priorities are to complete the joint appraisal of instruments with the Guyana government and to begin detailed design work on the confirmed priorities, with continued engagement across government, the private sector and forest communities throughout the life of the programme.