Ghana’s carbon market infrastructure needs strengthening to deliver economic value and achieve climate goals. Frank Annoh-Dompreh, Member of Parliament for Nsawam-Adoagyiri, highlighted this critical need in a recent address. He advocated for clearer policies, regulatory certainty, and protection of national interests within the carbon market.
The current framework, managed by the Ghana Carbon Market Office under the Environmental Protection Authority (EPA), has already established foundational elements. These include support for Article 6 of the Paris Agreement and voluntary carbon market activities. Ghana has also begun recording numerous mitigation activities across energy, agriculture, forestry, and transportation sectors. This proactive engagement positions Ghana to benefit from the global carbon credit market.
This initiative fits into Ghana’s broader economic strategy to leverage green financing and sustainable development. The country aims to meet its Nationally Determined Contributions (NDCs) under the Paris Agreement. A well-managed carbon market can attract significant foreign investment and create new job opportunities. It aligns with Ghana's job creation agenda, food security agenda, and energy transition strategy.
Mr. Annoh-Dompreh underscored that the carbon market must function as a national development instrument. He stressed that Ghana must ensure genuine emissions reductions, tangible community benefits, and increased private-sector investment. This approach will prevent Ghana from selling future carbon credits cheaply, which might hinder its own climate commitments.
Moving forward, the government must simplify rules, accelerate approval processes, and ensure predictable timelines. It also needs to clearly communicate distinctions between various carbon market transactions. Decision-makers must also resource and support key institutions like the Ministry of Environment, EPA, and the Carbon Market Office. These steps are crucial for the efficient operation of Ghana’s carbon market.
Ghana must also insist on high-integrity carbon credits to avoid credibility challenges seen in other global markets. Projects must demonstrate environmental integrity and transparent benefit-sharing. This commitment ensures that communities, who own and manage critical land and natural resources, are properly engaged and compensated. Clear grievance mechanisms and fair benefit-sharing arrangements are essential for all carbon projects.
Building a strong domestic project pipeline is another key government priority. This involves targeting high-impact sectors like renewable energy, methane reduction, and forest restoration. Aligning carbon financing with national development challenges like job creation and food security will maximize impact. Ghana should also invest in national capacity building to reduce reliance on foreign consultants. Training local experts in project design, carbon accounting, and legal contracting is paramount.
The Ghana Carbon Registry requires further strengthening to accurately track mitigation activities and transfers. A digital, transparent, and secure registry, integrated with the national greenhouse gas inventory, is vital. Improved coordination among institutions will ensure that carbon market decisions are processed efficiently, without lengthy delays. These measures will help attract credible investors and position Ghana as a leader in sustainable development.