The Programme for Promoting Integrated Mechanisms for Climate Risk Management and Transfer (ICRM) ends at the end of June this year, after more than three years of successful implementation.
Its main objective is to develop and implement ICRM approach in the country’s agricultural businesses for hedging the financial risks against extreme weather events.
The programme, commissioned by the German Federal Ministry for the Environment, Nature Conservation, and nuclear Safety (BMU), and is jointly implemented by the Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH and Munich Climate Insurance Initiative (MCII).
In a speech read on behalf of the Director, Economic Strategy and Research Division of the Ministry of Finance, Dr. Alhassan Iddrisu, noted that Ghana as a member of the United Nations Framework Convention on Climate Change (UNFCCC) and a party to the Paris Agreement, recognizes vulnerability to climate risks and the challenges climate change present for economic development.
“To give policy direction to serious risk posed by climate change and, to ensure sustainable development, a National Climate Change Policy was launched in July, 2014”.
Dr. Iddrisu went on to add that Ghana would require a total of US$22.6 billion to implement the programmes outlined in Ghana’s Nationally Determine Contribution‘s document and out of this amount, an estimated US$12.6 billion which represents 56.2% of the total investment is required to implement the adaptation programmes which shows how the country places a premium on climate adaptation.
Eric Nana Agyeman-Prempeh, Director-General, National Disaster Management Organisation (NADMO) onbserved that the project started in 2017 in two selected pilot districts namely; Zabzugu in the North East Region and South Tongu in the Volta Region.
He stated that the ICRM project hugely impacted the beneficiary communities in the areas of climate change adaptation to flood and drought events as well as, the adoption of smart agriculture practices, even though it is yet to be evaluated.
Agyeman-Prempeh noted however, that the ICRM project needs more attention in risk transfer since climate change still presents certain risks that go beyond efforts that is put in.
ICRM is an approach to dealing with the risks and manifestation of climate related disasters. It differs from previous concepts in the disaster management paradigm that focused almost exclusively on response, and didn’t pay much attention to opportunities to reduce the incidence or potential impact of climate disasters.
Currently, there are significant barriers to establishing risk transferring mechanisms such as climate insurance in the agriculture sector.
Climate change scenarios in Ghana reveal significant decline in the production of food staples due to drought, high temperatures, windstorms and floods among other factors.
Dr. Elke Stumpf, GIZ Team Leader of Market-Oriented Agricultural Programme and ICRM said Ghana faces extreme weather events like temperature variation and floods and that climate risks are everywhere. She strongly believes Ghana needs risk insurance for the agriculture sector since it plays such an important role in the economy. Dr. Stumpf emphasised that the agriculture sector is at risk of climate change and needs to be tackled comprehensively and hoped the final workshop for ICRM would explore and elaborate future risks for the country.