Guyana has long sought to diversify its economy and capitalize on the benefits of economic stability and job creation. However, the high dependence of the Guyanese economy on the production and export of a limited number of agricultural products and extractive industries – specifically bauxite, gold, sugar, rice and timber has not only made the country extremely vulnerable to global fluctuations in commodity prices, but also triggered socio-economic problems like unemployment and emigration.
The timing for a shift in the country’s growth strategy is auspicious, coinciding with the recent discovery of substantial oil reserves, the recent debt reliefs under the Highly Indebted Poor Countries initiative, and the entrance into the Caribbean Single Market and Economy. The Government of Guyana has a historical opportunity for using this economic windfall for the building of a sustainable development path that ensures future opportunities for the people of Guyana to thrive in non-oil sector markets, when petroleum resources come to an end.
The study Guyana Green Economy Modelling Study: Technical report serves to inform the actions of the Government of Guyana to achieve the emissions reduction commitments of the country under the climate agreement. It will also effectively support the main objectives of the GSDS, such as increasing economic diversification and growth, social inclusiveness, and sustainable management of natural resources.
Specifically, the modelling study provides evidence of how green policies can have positive economic, social and environmental impacts in four of the country’s main economic sectors. For example, investments in more sustainable agricultural practices and energy efficiency, as well as investments in Reduced Impact Logging (RIL) and the construction and maintenance of a sustainable transport road infrastructure; result in increased annual GDP growth, higher carbon sequestration, price premiums, higher yields, economical savings and more job opportunities for the Guyanese people.