JAGDEO: CONSERVATION, IF THE PRICE IS RIGHT

UNCLAS GEORGETOWN 001182 SIPDIS BRASISLIA ESTH HUB SIPDIS E.O. 12958: N/A TAGS: ECON EAID EINV SENV GY SUBJECT: JAGDEO: CONSERVATION, IF THE PRICE IS RIGHT REF: Georgetown 294 ¶1. Speaking at his return from an investment promotion conference in London on November 4, President Bharrat Jagdeo said that he intends to work with British Prime Minister Tony Blair and others to explore the potential use of Guyana's rainforest to offset climate change. Jagdeo further stated that such an arrangement would have to prove economically beneficial, saying "I cannot just preserve our rainforest in a pristine state so it could be the lungs of the world without Guyana benefiting from it". A few days earlier, Jagdeo hailed the recent publication of the Stern Review on the Economics of Climate Change and signaled Guyana's willingness to engage in sustainable forestry and trading of carbon credits while promoting Guyana's rainforest as "an asset to the globe". ¶2. COMMENT: The high-profile Stern Review, prepared for the UK government, advocates emissions trading to mitigate climate change. Jagdeo's interest in the economics of climate change as well as the attention placed on the Stern Report may raise the issue's profile in Guyana. Initial estimates suggest that Guyana may have some market potential as a carbon vendor. A 2005 study published in the journal Ecological Economics found that the use of Guyana's rainforests for climate change mitigation can generate revenue equal to that of conventional large-scale logging. Jagdeo's emphasis on securing benefits for Guyana may also be a nod to critics of the current state of the forestry industry in Guyana, who have argued vocally that Guyana benefits little from commercial logging (Reftel). On the other hand, Jagdeo's motivation is not preservation for preservation's sake, and Guyana may ultimately offer its forests to the highest bidder. Currently, logistics, rather than policy, have insulated most of Guyana's rainforest from development. If a global trend towards emissions trading gains momentum, Jagdeo's statements suggest that Guyana is poised to seek economic value in its forests beyond commercial logging. ROBINSON