Ghana risks losing out on billions of dollars in green investment if it does not address bureaucratic hurdles. Minority Chief Whip Frank Annoh-Dompreh issued this warning regarding the global carbon credit market.
Mr. Annoh-Dompreh stated that Ghana has already established key foundations, such as the Ghana Carbon Market Office. This office operates under the Environmental Protection Authority. However, the nation must quickly simplify regulations and strengthen governance. It also needs to attract credible investors to fully participate in this emerging market.
This initiative fits into Ghana’s broader economic strategy to leverage climate action for national development. Carbon markets allow countries to trade credits for reducing greenhouse gas emissions. Ghana aims to use this mechanism to fund projects, create jobs, and achieve its climate commitments. This aligns with national goals for energy transition and food security.
Addressing Parliament on Thursday, Mr. Annoh-Dompreh urged the government to provide greater policy certainty. He called for transparent approval processes and clear timelines for investors. He also stressed that fees must be reasonable. He emphasized, “The carbon credit market must not be treated merely as a trading platform for emissions reductions. It must be treated as a national development instrument.”
The Nsawam-Adoagyiri MP also cautioned against short-term financial gains that could compromise Ghana's future climate commitments. He urged the nation to reject low-quality carbon projects. These projects could undermine confidence in global carbon markets. He further highlighted the importance of involving local communities in all carbon projects. This includes proper consultation and fair benefit-sharing mechanisms.
Ghana’s active participation in the carbon market could position it as a leader in Africa's green transition. However, this requires careful management and strategic planning. Policymakers must focus on expanding projects in renewable energy, agriculture, and forestry. These sectors can generate jobs while reducing emissions. The government must also invest in local expertise rather than relying solely on foreign consultants. The establishment of a national carbon finance academy, linked to universities, would support this goal.
The effective functioning of carbon markets relies heavily on robust data management and institutional coordination. Mr. Annoh-Dompreh called for strengthening the Ghana Carbon Registry. He also advocated for improved coordination among institutions responsible for the sector. He emphasized, “Carbon market decisions should not sit in files for months.” This underlines the need for efficient administrative processes to facilitate investment. The nation must welcome investors who bring technology, financing, and long-term partnerships. Weak projects without sustainable implementation plans should be screened out.