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Memorandum of Understanding between the Government of the Cooperative Republic of Guyana and the Government of the Kingdom of Norway

Initiative

Summary

On 9 November 2009 the Government of the Cooperative Republic of Guyana and the Kingdom of Norway signed a Memorandum of Understanding (MOU) regarding Cooperation on Issues relating to the Fight against Climate Change, the Protection of Biodiversity and the Enhancement of Sustainable Development.

The objective of the MOU is to foster partnership between Guyana and Norway on issues of climate change, biodiversity and sustainable low carbon development. Of particular importance is the establishment of a comprehensive political and policy dialogue on these issues, and close cooperation regarding Guyana's REDD-plus efforts, including the establishment of a framework for result-based Norwegian financial support to Guyana's REDD-plus efforts.

The framework is outlined in a Joint Concept Note between the parties. The key elements of the framework are:

- Norway will provide Guyana with finance of up to $250 million over the period 2010-2015

- This finance will be channelled through a multi-contributor financial mechanism called the Guyana REDD+ Investment Fund (GRIF) - Finance will be paid on post delivery of results measured on two sets of indicators: Indicators of Enabling Activities and REDD+ performance indicators including forest-based GHG emissions indicators to be substituted as a MRV system develops.

- Finance will be used to implement Guyana’s Low Carbon Development Strategy and Guyana’s efforts in building capacity to improve overall REDD+ and LCDS efforts.

Reference levels

Pending the determination of an UNFCCC reference level methodology the ‘combined reference level’ methodology will be used where Guyana’s reference level is set at an average of Guyana’s mean 2000-2009 deforestation rate (0.03%) and the mean 2005-2009 rate in developing countries with deforestation (0.52%). This methodology results in a reference level of 0.275% for Guyana. 

There is an agreed maximum level of deforestation, set at the determined rate for 2009-2010 of 0.056%. If deforestation exceeds this level payments will be reduced by a rising scale of percentages, up to 0.1% where payments will be reduced to zero. The only exemption is any deforestation relating to the Amaila Falls Hydropower Project.

Financing