President Nana Addo Dankwa Akufo-Addo has revealed that Ghana has generated approximately $800 million from trading carbon credits with other nations.
He noted that this revenue would significantly support Ghana’s climate-resilient initiatives aimed at cutting down global carbon emissions.
Carbon credits are financial incentives provided to entities that reduce or eliminate greenhouse gas emissions, serving as compensation for emissions produced by companies or individuals.
Speaking at the opening session of the 29th Conference of Parties (COP29) in Baku, Azerbaijan’s capital, President Akufo-Addo highlighted that Ghana’s carbon trading efforts primarily involve European countries, including Sweden and Switzerland, through their carbon markets.
“Through article 6 of the Paris Agreement, Ghana has mobilised $800 million by trading carbon credits with nations like Switzerland and Sweden,” President Akufo-Addo stated.
President Akufo-Addo stated that Ghana aims to cut its carbon emissions by 64 million metric tonnes of carbon dioxide equivalent (MtCO2e) by the year 2030.
He said Ghana had adopted 13 mitigating actions which had cut down its annual greenhouse gas emissions by 43 per cent since 2021, stressing that “Despite financial and technical hurdles, we determined to reach the Paris Agreement goals across agriculture, forestry, energy and other sectors.”
The President, pledged that his government would continue to take decisive measures to safeguard the environment, adding that “Climate change is real and immediately affecting our farmers, coastlines and communities. I question what world we will leave behind. Our children’s future hinges on our decisions.”
He urged world leaders to honor their commitments to fund sustainable development in Africa, a continent that contributes minimally to global emissions yet suffers significantly from the effects of climate change.
“We call on our global partners to honour their commitments ensuring accessible concessional financing for sustainable development in Africa without unsustainable debts,” he stated.
Simon Stiell, Executive Secretary of the United Nations Framework Convention on Climate Change, emphasized that the climate crisis profoundly affects all aspects of human life while causing severe damage to national economies. He cautioned that no country should hinder collective global efforts to address this pressing challenge.
He also noted that, despite the universal impact of the climate crisis, it was disheartening that no single COP conference had yet achieved the comprehensive transformation required by nations worldwide.
“But if we want to address the excesses of the climate crisis, then it is here that Parties need to agree on a way out of this mess.
“What inspires me is human ingenuity and determination: our ability to get knocked down and to get up again over and over again, until we accomplish our goals,” he said.
The COP29 Summit stands as one of the most significant assemblies of world leaders aimed at advancing the objectives of the Paris Agreement under the UNFCCC.
The event has drawn approximately 50,000 participants, including more than 100 government representatives from Africa. They join other UN member states, along with the State of Palestine, the Holy See, the Cook Islands, and the European Union, all of whom are parties to the UNFCCC.