The nation has set a substantial goal of attaining 24 million tonnes of carbon credits by the year 2030, demonstrating its unwavering dedication to curbing carbon emissions and addressing the far-reaching consequences of climate change.
During the second joint meeting of the Intergovernmental Committee of Senior Officials and Experts for North Africa and West Africa held in Accra, Dr. John Ampontuah Kumah, the Deputy Minister of Finance, underscored the nation’s ambitious commitment. He stated, “the country is poised to have approximately 24 million tonnes of carbon credits available for transactions on the compliance market by 2030”.
The theme of the joint meeting, ‘investing in Energy Transition, Food Security, and Regional Value Chains for Sustainable Development in North and West Africa Sub-regions’, the joint meeting has brought to the forefront the pressing challenges confronting both sub-regions, including concerns related to food security, the transition towards sustainable energy, and the development of regional value chains.
These challenges hold significant implications for the well-being and sustainable development of the regions.
Ghana has achieved a notable milestone by becoming the second country in Africa, following Mozambique, to receive payments from the World Bank’s trust fund for efforts in reducing emissions from deforestation and forest degradation, commonly referred to as REDD+. Under this program, the World Bank’s Forest Carbon Partnership Facility (FCPF) has disbursed US$4.86 million to Ghana.
This payment acknowledges Ghana’s reduction of 972,456 tonnes of carbon emissions during the initial monitoring period, spanning from June to December 2019.
This payment marks the first installment of the country’s Emission Reductions Payment Agreement (ERPA) with the World Bank, aiming to demonstrate the potential for results-based payments in exchange for carbon credits.
Ghana stands to receive up to US$50 million, subject to achieving results in curtailing deforestation activities. Specifically, this funding is tied to reducing 10 million tonnes of CO2 emissions by the conclusion of 2024.
These actions are focused within a six-million-hectare region in the West Africa Guinean Forest, where biodiversity and forests face considerable pressures from activities such as cocoa farming, unsustainable harvesting, and small-scale mining.
It is noteworthy that Ghana is among the 15 countries that have entered into ERPAs with the World Bank.
Climate shocks
Dr. Kumah underscored the pressing nature of these challenges, particularly in light of the fact that as of 2022, over 20 million people in Africa, including at least 10 million children, grapple with severe food shortages. The situation is exacerbated by increasing debt levels and the growing frequency and severity of climate-related shocks, which impede investments in long-term climate-resilient solutions.
Despite the intricate and demanding global context, Dr. Kumah conveyed his optimism. Drawing from Ghana as an illustrative case, he highlighted the nation’s improved fiscal standing, successful reviews with the IMF, and advancements in achieving macroeconomic stability and debt sustainability.
He asserted that the current focus lies in orchestrating an economic revitalization underpinned by strong institutions and an active private sector, a model he believes can be replicated across the continent.
The deputy minister stressed the significance of nurturing regional value chains in West Africa’s manufacturing sector, which currently contributes to less than 10 percent of GDP. With the African Continental Free Trade Area in operation, enhancing competitiveness and fostering resilience against global shocks becomes pivotal.
Kumah pointed out that agricultural value chains possess the potential to reshape the economic landscape of North and West Africa. They can address food insecurity, create trade opportunities, and generate quality employment for the burgeoning youth populations. He accentuated the importance of scaling up private-sector-led initiatives to boost efficiency and productivity improvements throughout the continent.
Dr. Kumah directed his attention to the issue of energy poverty, acknowledging its substantial impediment to economic development and trade in Africa. He noted that nearly half of sub-Saharan Africa lacks access to electricity, with a substantial gap in rural areas. He highlighted Ghana’s commitment to sustainable development and climate change mitigation through the implementation of the National Energy Transition Framework.
The deputy minister reiterated Ghana’s dedication to reducing carbon emissions and mitigating the effects of climate change, emphasizing their commitment to green businesses and green jobs.
He pointed out that these efforts not only benefit the environment but also offer enhanced financial and social returns compared to traditional ‘business-as-usual’ investments.