Ghana to unveil first phase of Green Finance Taxonomy to drive climate resilience and growth

The government of Ghana is set to unveil a significant step towards a greener future with the launch of its 1st Phase of the Green Finance Taxonomy at the 2024 Annual SDGs Investment Fair, scheduled for October 9, 2024.

This landmark event will serve as the cornerstone for aligning the country’s financial investments with sustainable development and climate resilience.

The Green Taxonomy is a critical framework that will guide public and private sector investments towards projects that foster low-carbon growth and help the country meet its climate action commitments under the Paris Agreement.

The event, themed; "Unlocking Green Growth: Financing the Future through Sustainable Investments," will bring together key stakeholders from the financial sector, government agencies, and international partners to explore how Ghana’s new taxonomy can accelerate the transition to a climate-resilient economy.

The framework will identify sustainable economic activities and establish criteria for evaluating investments that support renewable energy, green urban development, climate change mitigation, and biodiversity conservation among others.

Additionally, the fair will also feature speeches from high-profile government officials, including the Minister for Finance and the CEO of the Ghana Investment Promotion Centre (GIPC), and presentations on the Green Finance Taxonomy's strategic vision.

A panel discussion will also highlight success stories from regions that have already adopted similar taxonomies, emphasizing the potential for Ghana to become a hub for green investments in Africa.

The unveiling is expected mark the first phase of a comprehensive, multi-phase framework designed to guide investments towards sustainable and climate-resilient projects, a crucial step in advancing Ghana's green growth agenda.

The Taxonomy's rollout will occur in three key phases which include the launch, introducing a qualitative framework, outlining technical screening criteria for classifying green investments across various sectors.

This foundational stage is set to provide a clear structure for identifying environmentally friendly projects and initiatives.

The second phase will introduce quantitative standards, providing measurable criteria for assessing the environmental impact of investments.

This phase will also roll out fiscal incentives, such as tax exemptions and sector-specific incentives, to encourage more robust investments in sustainable projects.

Phase three will implement a Transitional Taxonomy to guide traditional carbon-intensive sectors like oil, gas, and mining sectors and push these industries toward more sustainable practices, balancing economic growth with environmental responsibility.

The event will be attended by key stakeholders, including representatives from major development partners including the United Nations Country Office, the German Development Cooperation through GIZ, the Tony Blair Institute, the UK Foreign, Commonwealth & Development Office (FCDO), and FSD Africa.

SSD/MA

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