The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Environmental activists yesterday argued that the full benefits from creating carbon credits, and their subsequent trading, should go to the Bahamian people and not be shared with an oil explorer seeking to recover its $150m investment.

Rashema Ingraham, executive director of Waterkeepers Bahamas, told Tribune Business that Challenger Energy Group, the former Bahamas Petroleum Company (BPC), should not be using carbon credits as “collateral” or leverage in its dealings with the Government.

The Davis administration previously told this newspaper it is “examining the merits” of Challenger’s proposal on how it could “monetise” its assets in this nation via an alternative to extracting any commercial oil discoveries. However, Ms Ingraham said she was “absolutely 100 percent against” the exploration outfit using carbon credits as an offset to obtain monetary reward for not proceeding with commercial drilling in Bahamian waters.

“One of the things they mentioned before was exchanging for carbon credits,” she said of Challenger. “The carbon credits should be for the people of The Bahamas and not for a private group to use as collateral for government business. When it comes to carbon credits, or anything that impacts the futures and lives of Bahamians, no private entity should use that as collateral to engage in any form of business with the Government.”

Challenger has provided no details on how the carbon credits proposal would be structured. However, given that these credits would likely be an offset to the non-extraction of any further commercial oil discoveries in Bahamian waters, it would appear likely that further exploratory wells will have to be dug to confirm if such deposits exist.

Carbon credits will only be created, and available for trading, if the existence of commercial oil deposits within The Bahamas can be verified. There would likely also have to be a revenue sharing agreement worked out with the Government if Challenger’s plan ever comes to fruition, and much work remains to yet be done.

Ms Ingraham, though, warned that further exploratory drilling by Challenger in Bahamian waters - in pursuit of carbon credits or otherwise - would represent a potential threat to the ‘blue economy’ carbon sinks that this nation is already hoping to monetise via these financial instruments, namely its seagrass beds, mangroves and wetlands.

“The Government has already been provided with several options on how we can move into the carbon credit market,” she told this newspaper. “The potential for use of our already existing natural ecosystems provides so much more for us to enter these markets, and especially if there is the potential for oil exploration to damage and devastate these ecosystems.”

Challenger, though, has said it is sufficiently encouraged by the results of its Perseverance One well, drilled in waters 90 miles west of Andros, to believe oil may yet exist below the Bahamian seabed. However, it has made clear that it will not proceed with further drilling activities unless it can find a joint venture or farm-in partner to share the bulk of the financial, technical and operational risk as it seeks to recover its extensive investment in this nation.

Ms Ingraham spoke as she and Casuarina McKinney, the Bahamas Reef Environmental Educational Foundation’s (BREEF) executive director, issued a public letter on behalf of the Our Islands, Our Future coalition calling on this nation to declare its “independence” from oil and fossil fuels. The first step in this process, they argued, is for the Government to ban oil drilling in Bahamian waters.

“We implore the Government to take the next critical step by setting The Bahamas on a path to declaring independence from oil. The transition will take time, but climate change won’t wait. The last thing we should do is encourage additional investment in a failing fossil fuel economy. First and foremost, this transition should include a ban on oil drilling in our islands and waters,” the duo wrote.

“By leading the way in declaring independence from oil, The Bahamas can inspire other nations to embrace sustainable practices and spearhead the fight against climate change. We can set an example for the world, demonstrating our commitment to preserving our natural heritage and securing a brighter future for future generations.”

And they added: “Declaring independence from oil would be a watershed moment that showcases our government’s unwavering dedication to saving our beautiful islands for generations to come. It is an opportunity to demonstrate global leadership and inspire climate action.

“By transitioning to renewable energy sources such as solar and wind, we can significantly reduce our greenhouse gas emissions, mitigate the effects of climate change and improve our lives. The abundant sunshine, wind and ocean currents that grace our shores are a natural advantage for harnessing renewable energy. Embracing clean energy technologies would protect our environment, create jobs, stimulate economic growth, and enhance energy security....

“Let us declare independence from oil, implement a ban on drilling, and pave the way towards a cleaner, greener, and more prosperous nation. Together, we can make The Bahamas a beacon of hope and a global leader in renewable energy.”