Guyana REDD+ Investment Fund (GRIF)
The GRIF is a fund for the financing of activities identified under the Government of Guyana’s Low Carbon Development Strategy (LCDS). The fund will receive up to US$250 million from Norway in performance-based payments for the period up until 2015, based on an independent verification of Guyana’s deforestation and forest degradation rates and progress on REDD+ enabling activities.
Background on Low-Carbon Development Strategy
The LCDS sets out Guyana's approach to transition to a green economy. Its stated aim is to combat climate change while simultaneously promoting economic growth and development. It sets out how Guyana’s economy can be realigned along a low carbon development path, by investing payments received for avoided deforestation into strategic low carbon sectors. These payments will catalyse Guyana’s efforts to diversify its economy and provide new economic opportunities, employment and more efficient use of resources, while maintaining a valuable forest ecosystem. The LCDS anticipates, but does not prejudice, the emergence of an international REDD+ mechanism which will create positive financial incentives for forest-based greenhouse gas abatements.
Objectives of the GRIF
Pending the creation of an international REDD+ mechanism, the Guyana REDD+ Investment Fund (GRIF) represents an effort to create an innovative climate finance mechanism which balances national sovereignty over investment priorities with ensuring that REDD+ funds adhere to the Partner Entities’ financial, environmental and social safeguards.
The GRIF will (i) receive payments for forest climate services provided by Guyana; and (ii) transfer these payments and any investment income earned on these payments, net of any administrative costs of the Trustee and the Secretariat and any administrative fees to the Partner Entities, for projects and activities that support the implementation of Guyana's LCDS.See more