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The Deputy Minister for Finance, Dr. Alex Ampaabeng, has called on the African Development Bank Group (AfDB) to spearhead efforts aimed at increasing transparency in carbon markets.
Speaking at a panel discussion at the African Development Bank Group meetings, under the theme ‘Carbon Markets in Africa: Unpacking Complexity, Embracing Opportunities’, Dr. Ampaabeng emphasised the need for strategic investments in innovative technologies to achieve this goal.
Commenting on the government of Ghana’s dedication to environmental sustainability, Dr. Ampaabeng reaffirmed their commitment to reduce greenhouse gas emissions by 64 million tonnes by the year 2030.
This ambitious target, he added, aligns with the broader agenda to combat climate change and promote a greener economy.
However, he added that this will require an investment of US$6.3billion across energy, transport, industry, forestry and waste-management.
The Deputy Minister disclosed that government has established a credible rule-based national arrangement to regulate generation, and safeguard certification, authorisation and international transfer of carbon credit.
“In January 2023, the Cabinet of Ghana approved and subsequently published our national carbon market framework, which is aimed at facilitating unilateral carbon market approaches,” he disclosed.
Currently, he said, Ghana is involved in five government to government cooperative approaches with countries such as Switzerland, Sweden, Singapore, Liechtenstein and South Korea; and government to corporation approaches, notable among which are Mercuria Energy and British Petroleum.
Under the Ghana-Switzerland agreement, he noted that 12 projects are progressing – of which 8 are to generate approximately US$850million in investment. These investments, he added, are expected to generate 7,000 decent green jobs by 2030.
“This clearly underscores the governments of Ghana and Switzerland’s dual commitment to reducing emissions while fostering economic growth and job creation,” he said.
It is against this backdrop that the Deputy Finance Minister asserted it is Ghana’s view that Africa will benefit from an established compliance market to harness the continent’s collective climate action efforts while addressing significant financial gaps in the adaptation strategies.
He said, “This market we are proposing will ensure that the global north contributes their fair-share in mitigating the climate challenges they have significantly helped in creating”.
Furthermore, he maintained that it is time for Africa to adopt a more collaborative stance and take decisive actions supported by global cooperation to leverage Africa’s full potential in the fight against climate change.
The Deputy Minister’s remarks come at a crucial time when countries across the globe are grappling with the effects of climate change.
Thus, calls for the AfDB to take a leading role, it is believed, underline the importance of collaborative efforts and the bank’s potential influence in shaping a sustainable future amid the challenges of transparency and pricing of carbon credit on the continent.
