The Energy Transition in Gayana

Guyana is undergoing a dramatic transformation, catapulted into global relevance by major offshore oil discoveries, even as it seeks to balance newfound hydrocarbon wealth with long-term sustainability goals. As one of the fastest-growing economies in the world, Guyana is now navigating the complexities of building a modern energy system while addressing climate imperatives, regional integration, and resource sovereignty. At the heart of this transition is a paradox, the country’s economic future is being reshaped by petroleum exports, yet its long-term resilience may depend on how effectively it can diversify its energy mix and leverage its mineral endowment, including gold, bauxite (aluminium ore), and diamonds, to participate in the global shift toward low-carbon development. Guyana’s mining sector is well-established, with gold playing a central role in both formal exports and informal livelihoods. However, environmental degradation, deforestation, and mercury contamination, particularly in the interior and riverine regions, continue to raise serious governance and ESG concerns. As demand for critical and industrial minerals intensifies, Guyana faces growing pressure to strengthen regulatory frameworks, ensure transparency, and attract responsible investment. Participation in regional blocs like CARICOM and the IADB, alongside alignment with the G77 and Commonwealth, positions Guyana to influence regional energy diplomacy while deepening South-South cooperation. The country must reconcile its emerging status as a petrostate with its commitments to environmental stewardship, low-carbon development, and inclusive growth. How Guyana manages this pivot will define its role not only in Latin America and the Caribbean but also in the evolving geopolitics of energy and raw materials.