Ghana is actively pushing to gain financial support through carbon markets. The nation is using its abundant forest resources. It is also developing new policy rules to attract money. These efforts aim to secure new climate financing.
Minister of State for Climate Change and Sustainability, Baba Seidu Salifu, stated that Ghana faces hurdles. Weaknesses exist in building projects. Systems for measuring, reporting, and verifying emissions also need work. Regulatory frameworks also need strengthening. These gaps could slow down progress. Ghana wants to join global carbon trading more deeply.
This move fits into a wider economic plan for Ghana. Access to easy money for climate projects is becoming harder. The country wants to find new ways to fund climate action. Minister Salifu spoke at a Government Accountability Series event. He said that joining carbon markets is a top goal. It joins priorities like building more renewable energy. It also includes developing strong infrastructure to handle climate change.
“Our focus has not only been on accessing funding but also building the institutional systems required for Ghana to sustainably attract, manage and deploy climate finance,” Mr. Salifu said. He pointed to efforts to improve how projects are approved. Work is also ongoing to create a list of projects ready for investment. Ghana is also preparing itself better for carbon markets.
Ghana has already taken initial steps. In 2023, the country made an agreement with Switzerland called an Article 6 agreement. This deal means Ghana will supply reductions in greenhouse gas emissions. These will come from projects focused on clean cooking and waste management. This deal is one of the first of its kind in Africa. It serves as a test case. It shows how developing nations can earn money from cutting emissions.
The country also runs REDD+ programmes. These programmes aim to cut emissions from losing forests. They also target preventing damage to forests. Ghana has already secured payments for these efforts. The World Bank and other partners provide support. These actions are starting to create carbon credits. These credits are linked to protecting forests. However, the amounts are still small compared to what is possible.
The minister noted that improving these outcomes depends on closing technical gaps. “Limited capacity in carbon markets, particularly in project development, measurement, reporting and verification systems and regulatory frameworks, constrains our ability to fully participate and benefit,” Mr. Salifu said. Carbon markets are seen as a vital source of funding for poorer countries. This is true as other funding sources tighten.
Mr. Salifu said that donors are growing tired. Support through free grants is decreasing. This forces countries to look for new tools. “There remains a heavy reliance on loan-based climate finance, which raises concerns around debt sustainability and fiscal pressure,” he said. He stressed the need for more grants and easier loans. To improve its position, the government has started new partnerships. These cover getting money for climate actions. They also cover renewable energy and strong infrastructure. They include developing carbon markets.
These are agreements without firm promises. They aim to prepare for future investment. The relevant office has also helped local banks. This includes the Ghana Infrastructure Investment Fund (GIIF). The Ghana Investment Promotion Centre (GIPC) also participated. They met with international partners. This is to build a list of climate projects that banks can fund. These projects cover renewable energy. They also cover farming and infrastructure that can withstand climate change.
However, turning these early plans into valuable carbon assets will depend on how trustworthy Ghana's systems are. This includes how well it measures emissions. It also includes how quickly clear rules are put in place. Competition for climate finance is growing in Africa. The minister also pointed out slow processes. Accreditation to global climate funds like the Green Climate Fund takes time. This delays getting money. “These realities underscore the urgency of reform and innovation,” he said.
Looking ahead, the government plans to improve its tracking and reporting systems. It will speed up its approval for global climate funds. It will also deepen its involvement in carbon markets. This is part of its goal to transform the economy. “Climate action is not charity. It is a stra