Ken Ofori-Atta, the Minister of Finance of Ghana, has indicated that Ghana will participate in global carbon markets over the next nine years.
Carbon markets present an alternative climate investment option for the Government of Ghana to explore and implement climate actions geared towards the achievement of the Ghana-Nationally Determined Contributions (NDCs).
Carbon market refers to a diverse set of systems that are regulated in different jurisdictions for trading greenhouse gas pollution rights.
During the just-ended COP26 climate Change Conference in Glasgow, Ghana updated its NDCs with 47 adaptation and mitigation measures on climate change.
In line with these measures, the country requires between $9.3 billion and $15.5 billion to implement climate interventions till 2030. Specifically, the government would require $3.9 billion to implement the 16 unconditional programmes of actions over the period and $5.4 billion for the remaining 31 conditional programmes.
Meanwhile, with a target of 64 million tonnes of total carbon emissions, 24 million tonnes are available for carbon market transactions, the minister said.
“Government has successfully put in place the critical policies and regulatory arrangements that will enable Ghana to participate in global carbon markets”.
Ken Ofori-Atta, Minister of Finance
With these policies in place, this paves the way for investors (local or foreign) and project developers to either independently or with the government, trade carbon with countries and corporations with ambitious net zero targets over the next nine years.
Ghana to receive funding from Switzerland to meet climate targets
Ken Ofori-Atta said the Government of Switzerland has accepted Ghana’s request to pilot climate change mitigation activities under Article 6.2 of Internationally Transferred Mitigation Outcomes (ITMOs).
This was in connection with a 2020 bilateral agreement between the two countries which sought to set the framework conditions for the implementation of Article 6 of the Paris Agreement.
In line with this agreement, Ghana will receive funding from Switzerland to leverage finance and stimulate investment in green friendly projects that will contribute to achieving our Nationally Determined Contributions and SDGs, in exchange for two million tonnes of carbon emission reduction credits.
According to the Minister of Finance, the Environmental Protection Agency (EPA) and KLIK Foundation, noted for climate protection and carbon offsetting, have identified Solar Photovoltaic Systems, Landfill Gas, Cook stoves and Biomass Pellets as areas in Ghana to be developed into mitigation programmes to achieve the objectives of the bilateral agreement.
According to Ken Ofori-Atta, “this agreement will open the doors for commercial projects and empower national businesses to drive climate action in the country. The project will be named the National Clean Energy Access Programme (NCEP).”
Another partnership agreement for climate cooperation under the Paris Agreement is reported to have been signed between Ghana and Sweden at the COP26 summit. These among other partnerships yet to be agreed upon are aimed at helping Ghana keep temperatures at 1.5 degree Celsius.
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