Carbon Market: Ghana’s ambitious green agenda unlocks $850 million investments

Carbon Market: Ghana’s ambitious green agenda unlocks $850 million investments 

Ghana’s Ministry of Environment, in collaboration with international partners, has successfully unlocked a staggering $850 million in investments, catalyzing the nation’s green transformation until 2030.

The secured $850m investments are per the country’s efforts in the implementation of Article 6 bilateral voluntary cooperation of the Paris Agreement.

According to the Minister for Science and Environment, Dr Kwaku Afriyie, a total of twelve projects are currently in development under the Ghana-Switzerland agreement, a testament to the nation’s commitment to sustainable practices.

Notably, eight of these projects have reached crucial investment decision points, paving the way for the injection of approximately $850 million. This substantial capital infusion is derived from a mix of direct investment, carbon revenues, and fees, underscoring the diverse financial instruments leveraged to drive Ghana’s green agenda.

The anticipated outcomes of these investments are nothing short of transformative as projections indicate the creation of a minimum of 7,000 green jobs, alongside commendable environmental gains, including the saving of 6 million tonnes of greenhouse gas emissions. These projects span critical sectors such as clean cooking, renewable energy, electric mobility, and green cooling, aligning Ghana with global efforts to combat climate change.

Crucially, the partnership between Ghana and Switzerland extends beyond bilateral cooperation. Two Article 6 projects focusing on sustainable agriculture and waste-to-compost initiatives have received the joint authorization of the Ministry of Environment and Switzerland’s Federal Office of Environment, securing a substantial investment totaling $100 million, with an additional carbon value of $29 million.

Furthermore, Ghana is actively engaged in five Government-to-Government (G2G) bilateral cooperative approaches, in line with Article 6.1 of the Paris Agreement. Collaborating with nations such as Sweden, Singapore, South Korea, and Liechtenstein, Ghana positions itself as a regional leader in fostering international cooperation to achieve shared climate goals.

At the core of Ghana’s ambitious green initiatives is a commitment to mitigate 64 million tonnes of greenhouse gas emissions by 2030, as outlined in its revised Nationally Determined Contributions (NDC).

However, achieving this target requires substantial financial backing, with an estimated $6.3 billion investment planned across 34 mitigation actions spanning energy, transport, industry, waste, agriculture, and forestry sectors.

A significant portion of this financial commitment, approximately $1.4 billion, is expected to be mobilized domestically to fund nine unconditional mitigation actions, aiming to achieve 25 million tonnes of emission savings.

The remaining $4.9 billion, crucial for implementing conditional measures and beyond, will be sourced from international cooperation, including participation in the carbon market.