Guyana, Suriname to defend oil extraction at COP26 – Jagdeo
The International Energy Agency (IEA) recently warned that exploration and development of new oil and gas fields must stop this year if the world is to reach net-zero emissions by 2050.
This increases pressure on countries newly emerging in the fossil fuel industry, including Guyana and Suriname, to limit operations so that the world can achieve its climate goals.
However, developing countries see this as an attempt to monopolize the industry in a world that still relies heavily on fossil fuels.
In a recent exclusive interview with Stabroek News, Vice President Bharrat Jagdeo disclosed that the Guyana and Suriname governments will take the opportunity at the United Nations Climate Change Conference called COP26 to explain their decision to continue their oil and gas operations.
The two governments recently agreed to make joint presentations at COP26, which will be held in Glasgow, Scotland from November 1st to 12th, on several matters including their oil and gas industries.
Jagdeo said that COP26 presents a good forum to determine whether Guyana’s and Suriname’s intention to continue being oil producers will conflict with their international and national positions on climate change of getting to net-zero emissions.
“We have to explain this nuanced position to the world in light of the IEA report which said you have to stop all new development of fossil fuel resources from explorations right up to development,” the Vice President said.
He noted that this recommendation was not only made by the IEA, but also by the United Nations (UN) Secretary-General Antonio Guterres and the Intergovernmental Panel on Climate Change (IPCC), and as parties committed to the Paris Agreement, it is only right that the two countries make known their positions.
According to Jagdeo, the focal point of their arguments will be that Guyana and Suriname are already net carbon neutral, thanks to both countries’ vast forests which are acting as a carbon sink.
“Where the world is trying to get to by 2050, we are already there. That’s position number one,” he stated.
The Vice President noted that both countries support rapid decarbonization and are committed to helping the world achieve climate goals.
However, he says, more pressure must be placed on the developed countries that are emitting a high level of greenhouse gases as the success of the Paris Agreement highly depends on the steps those countries take to meet climate change goals, especially when it comes to the fossil fuel industry.
As it is right now, he said, an oil and gas industry worth about US$4 trillion still exists because there is a demand for fossil fuel, even though many countries are turning towards renewable energy. Despite the attempts to adopt renewable energy sources, he added, the demand for fossil fuels outweighs the implementation of projects to adopt renewable energy.
He subsequently added that the demand for fossil fuels is dependent on the actions of the developed world and the pace at which they move to phase out the fossil fuel industry.
No abatement
“Right now we see no abatement in that pace,” he said.
Jagdeo went on to add that if countries are being asked to stop the development of new oil and gas fields and there is still demand for fossil fuel, then essentially current producers are locking in a monopoly.
That means, he said, Guyana will be unable to sell its fossil fuel resources. “We have to forego our production just because the world wants to lock in a monopoly for these existing countries, but why? We are a low-cost producer and our crude is light sweet crude, which is less polluting than the others,” he said.
He pointed out that despite developed countries pledging to assist developing countries in terms of financing as part of the Paris Agreement, this is not being done.
As a result, Jagdeo disclosed, their presentation at COP26 will argue why developing countries like Guyana and Suriname need to be part of the oil market. The additional finances from the industry will allow investments in the non-polluting areas of the economy and also, raise living standards.
He added that if the fossil fuel industry is monopolized then, Guyana is going to be stuck in