The Caribbean is among the most climate-vulnerable and disaster-prone regions in the world, with its exposure shaped by geography, topography, and socio-economic factors. Despite these challenges, Small Island Developing States (SIDS) in the region have set ambitious Nationally Determined Contributions (NDCs) under the Paris Agreement, aiming to advance renewable energy, protect ecosystems, enhance coastal resilience, and develop climate-resilient infrastructure. Translating these ambitions into actionable projects, however, requires substantial financial resources, which many island economies struggle to mobilize.
Carbon markets have emerged as a promising avenue for SIDS to generate domestic revenue streams that can finance their NDCs. By monetizing emission reductions and ecosystem services, countries can unlock new sources of funding while strengthening climate resilience and promoting mitigation efforts. To achieve this, it is crucial to remove barriers to carbon market participation and design finance mechanisms that are relevant and accessible for small island economies.
Guyana’s experience provides a compelling example of how a country with vast natural resources can leverage carbon markets to support climate action and broader development objectives. Through its Low Carbon Development Strategy (LCDS), Guyana has monetized the carbon storage capacity of its tropical forests, which cover 85 percent of its land area. The country became the first to issue jurisdictional-scale carbon credits, enabling it to sell forest carbon credits on international markets. The revenue generated is reinvested in climate adaptation, forest conservation, sustainable development, and benefit-sharing with Indigenous Peoples and local communities.
Guyana’s journey demonstrates the technical, legal, and institutional innovations needed to participate effectively in carbon markets. To share these insights and support other Caribbean nations, the Commonwealth Climate Finance Access Hub (CCFAH), in partnership with the Caribbean Community Climate Change Centre (CCCCC), the United Nations Development Programme (UNDP), the World Bank, and the UNFCCC Regional Collaboration Centre (RCC) Caribbean, is organizing a regional knowledge exchange and peer-to-peer learning event.
The event aims to enhance technical understanding among participating countries on the preparatory activities, frameworks, and requirements for engaging in carbon markets. It will also raise awareness of available tools and capacity-building support and provide a platform for Caribbean nations to learn from Guyana’s successes, challenges, and opportunities.
Participants include government officials, UNFCCC and Global Environment Facility focal points, UN agency representatives, private sector entities, development partners, and donors. Notable speakers include Suresh Yadav, Senior Director of the Oceans and Climate Directorate at the Commonwealth Secretariat; Uzoamaka Nwamarah, Head of the Climate Section at the Commonwealth Secretariat; Dr. Jamiil Jeetoo, National Economist with UNDP in Mauritius and Seychelles; Pradeepa Bholanath, Senior Director of Climate Change and REDD+ at Guyana’s Ministry of Natural Resources; Marlen Goerner, Climate Change Specialist at the World Bank; and Aurelius Nkonde, Manager at CCFAH. The sessions will be moderated by Tracy Smith, Regional NDC Coordinator at CCCCC, and Zipora Otieno, Commonwealth Regional Climate Finance Adviser for the Caribbean.
By drawing on Guyana’s pioneering approach, the event seeks to inspire Caribbean countries to harness carbon markets as a tool for financing climate action, unlocking sustainable development opportunities, and achieving NDC targets more effectively.
