If climate change remains unaddressed, Ghana could face a significant cost of approximately 1.7 per cent of its GDP annually by 2030, the World Bank has estimated.
In response to this challenge, the Finance Minister, Ken Ofori-Atta, said during the presentation of the 2023 mid-year budget review that the government is actively working to secure carbon financing to support the country’s Nationally Determined Contributions (NDCs) and meet its commitments under the Paris Agreement.
NDCs represent the country’s self-defined national climate pledges, outlining their efforts to contribute to the global goal of limiting temperature rise to 1.5°C, adapting to climate impacts, and securing sufficient finance to support these endeavours.
By securing financial support to advance these climate initiatives, the minister emphasized that it will attract foreign direct green investments, which will benefit local businesses and help shield the country from potential shocks caused by climate change.
“As part of our efforts to address loss and damage from climate change, Ghana, as one of the first pathfinder countries, launched the in-country process for Ghana’s participation in the Global Shield against Climate Risk and the Global Risk Modelling Alliance. These initiatives will enable us to assess quantitatively our climate risk, design solutions informed by the data and facilitate access to resources from the Global Shield.
“Government in partnership with the Green Climate Fund has established the Ghana Shea Landscape Emission Reduction Project (GSLERP) at an estimated cost of US$54.5 million. The GSLERP will focus on the Shea Landscape and will address the country’s efforts to reduce emissions from deforestation and forest degradation (REDD+),” he added.
He further added that: “Government is implementing the Ghana Cocoa Forest REDD+ Programme (GCFRP), which covers 5.9 million ha (79% off-reserve, 21% on reserve) in seven regions. Ghana became the second African country after Mozambique to receive FCPF REDD+ payments in January 2023.”
The programme is said to benefit 12 million urban and rural residents.
“Under the leadership of the President, we are transforming the Climate Vulnerable Forum and V20 into a permanent Inter-Governmental Organisation. The aim is to champion, principally, a ‘Fair Share’ Agenda to ensure appropriate financing for adaptation, mitigation, and loss and damage; whilst leveraging our natural resources to raise carbon financing for accelerated climate action and to ensure that the 1.5-degree Celsius temperature threshold is not breached,” he said
