The Environmental Protection Agency (EPA) is being urged to implement a carbon tax on the crude oil currently being extracted in the offshore Stabroek Block by ExxonMobil’s subsidiary Esso Exploration and Production Guyana Ltd (EEPGL) which could earn Guyana billions annually.
The University of Guyana’s GREEN Institute (UGGI) submitted a proposal to the EPA last Friday for the introduction of an upstream carbon tax to reduce pollution, and in particular carbon dioxide (CO2) emissions, associated with the crude oil now being extracted by EEPGL.
Since oil production began in December up to May, Exxon flared over nine billion cubic feet of natural gas, equivalent to the loss of 4,642 hectares of forest.
This would be valued at US$24 million based on the carbon price of US$5 per tonne under Guyana’s forest protection pact with Norway, according to calculations.
The UGGI proposal foresees a much higher carbon price.
