Climate change could cost Ghana 1.7% of GDP annually by 2030 if left unaddressed – Ofori-Atta

The World Bank estimates that climate change could cost Ghana approximately 1.7 per cent of GDP annually by 2030 if left unaddressed, Finance Minister, Ken Ofori-Atta has said.

Cognisant of this assessment, Mr Ofori-Atta said the government is working to secure carbon financing to support its Nationally Determined Contributions (NDCs) and meet its commitments under the Paris Agreement.

This, he explained, will drive foreign direct green investment to benefit local businesses.

Delivering the Mid-Year Budget Review before Parliament on Monday, July 31, 2023, Mr Ofori-Atta noted that as part of efforts to address loss and damage from climate change, Ghana, as one of the first pathfinder countries, launched the in-country process for Ghana’s participation in the Global Shield against Climate Risk and the Global Risk Modelling Alliance.

These initiatives, the minister indicated will enable us to assess quantitatively our climate risk, design solutions informed by the data and facilitate access to resources from the Global Shield.

Touching on what government has done to curb climate change, he said the Government in partnership with the Green Climate Fund has established the Ghana Shea Landscape Emission Reduction Project (GSLERP) at an estimated cost of US$54.5 million.

The GSLERP will focus on the Shea Landscape and will address the country’s efforts to reduce emissions from deforestation and forest degradation (REDD+).

Additionally, the Minister stated that the Government is implementing the Ghana Cocoa Forest REDD+ Programme (GCFRP), which covers 5.9 million ha (79% off-reserve, 21% on reserve) in seven regions. The programme will benefit 12 million urban and rural residents.

It was disclosed that Ghana became the second African country after Mozambique to receive FCPF REDD+ payments in January 2023.

According to Mr Ofori-Atta, Ghana continues to have an impressive record in the climate space. He said President Akufo-Addo currently chairs the Climate Vulnerable Forum while he chairs the V20 Group of Finance Ministers. This is an organisation of 58 countries with a population of 1.5 billion people in the most affected regions of the world.

He said under the leadership of the President, Ghana is transforming the Climate Vulnerable Forum and V20 into a permanent Inter-Governmental Organisation. The aim is to champion, principally, a ‘Fair Share’ Agenda to ensure appropriate financing for 29 adaptation, mitigation, and loss and damage; whilst leveraging

natural resources to raise carbon financing for accelerated climate action and to ensure that the 1.5-degree Celsius temperature threshold is not breached.