An Economics Officer at the Ministry of Finance, Foster Gyamfi has said private sector funding was key for Ghana to effectively fight the impact of climate change as well as contribute to global efforts in keeping the temperate of the world below 1.5oC.
According to him, the impact of COVID-19 Pandemic has strength the budget of the government with government expenditure increasing while revenue decreased and this has made it more imperative to find ways to increase access to more private capital finance the countries climate change programmes.
“As we think of how to optimize our resources to meet our growth needs sustainably were reminded that – as a country we can only succeed in transitioning to a low carbon economy if government, the private sector and external development partners work together in consolidating the resources needed for going climate neutral”, he said
Mr. Gyamfi who disclosed this at the Ghana Investment Dialogue and said that the nation would need between $ 9.3 to $ 15.5 billion of investment to implement the 47 revised National Determined Contribution (GH – NDCs) programmes to fight climate change, from 2021 to 2030.
He said $3.9 billion of the total sum would be required to implement the 16 unconditional programmes of action under the NDCs as well as $5.4 billion to finance 31 conditional programmes of actions of the NDC from now to 2030.
He added that government would also need also need additional $ 3 million biannually to support coordination actions and regular international reporting on the NDCs.
He said 26th Climate Change Conference (COP 26) suggests that governments must provide more incentives for new investments, shifting more towards financing, which requires governments to create the right environments to attract more private investment.
He said added that the government must and was exploring more results-based financing options such as environmental and climate impact Bonds which were performance-based investment instruments.
He added that government must also secure a pipeline of development and infrastructure projects suitable for private financing and ensure that these projects are bankable and Environmental, Social and Governance factor (ESG) compliant to appeal to investors and their shareholders.
On his part, a Risk Manager at Ghana Infrastructure Investment Fund (GIIF), Mr Kwadwo Kwakye Gyan said Green Investment/Financing should be a key component of Ghana’s National Climate Change Policy (NCCP) and sustainable development strategies.
He hinted that globally, nations were adopting green financing and sustainability measures because were help to control the menace of climate Ghana.
He said stakeholders should also be concerned about the planet and not only the profit they would make from their businesses by investing in ventures that would help make the world a better place.
The Green Investment Dialogue was organised by the UN Global Compact in partnership with the Businesses in Environmental Stewardship Network (BESNet), a business network coordinated by A Rocha Ghana and International Union for Conservation of Nature (IUCN).
Aim of the dialogue is to engage businesses to encourage them to work in a way that would ensures that their operations have minimal negative impact on the environment and biodiversity; to also encourage them to adopt the green investment strategy – an incentive for businesses to transition to become eco- friendly.