Guyana's Net-Zero Paradox: Balancing Oil Boom with Environmental Concerns

Guyana: A Net-Zero Paradox? How a Carbon Sink Became an Oil Powerhouse Georgetown, Guyana – May 31, 2025 – Guyana, a small South American nation, finds itself in a unique position. Officially classified as net-zero, thanks to its vast carbon-absorbing rainforests, it has simultaneously become a significant global oil producer. This development presents a complex environmental challenge, prompting debate about the effectiveness of current carbon accounting methods. The UN's accounting practices attribute emissions from the burning of Guyanese oil to the consuming nations, not Guyana itself. This approach, while technically correct, raises questions about accountability and the overall impact on global emissions. Benita Davis, Policy Forum Guyana Project Coordinator, notes that "Some persons saw it as a blessing. 'We're going to finally be rich, we're going to be the Dubai of the Caribbean.' But then you realize oil and gas has a negative impact." The rapid expansion of Guyana's oil industry, beginning roughly five years ago, has led to environmental concerns. While the country's forests continue to absorb significant emissions, the volume of oil exported and subsequently burned elsewhere significantly contributes to global greenhouse gas levels. Aieshia Williams, WWF-Guianas Conservation Director, emphasizes the importance of mitigating threats to Guyana's forests and freshwater resources to ensure the country's net-zero status is maintained. "Making sure those are kept at the minimum and mitigated and managed is important." The story of Guyana highlights the complexities of global climate action and the need for a more comprehensive approach to carbon accounting. It underscores the importance of sustainable development practices that balance economic growth with environmental protection.