By Kizito CUDJOE
While the United States (U.S.) withdrawal from the Paris Agreement deals a blow to global climate efforts, an energy expert has urged Ghana to craft strategies to benefit from potential openings while safeguarding against challenges.
Africa Senior Programme Officer at the Natural Resource Governance Institute (NRGI), Denis Gyeyir, noted that the U.S. decision has several implications. One significant outcome is the potential for increased funding opportunities for hydrocarbon producers, as funding for climate action is expected to decline.
On the back of this, he said the government of Ghana needs to carefully plan and position the country to attract funding that will be available for hydrocarbon investments. This is given that the country has not attracted any new Petroleum Agreement (PA) since 2018, amid the decline in production over the past few years.
But this, he added, “requires some regulatory amendments to our laws, some incentives in terms of attracting investments and the use of fiscal tools, for instance, that encourage companies to invest in exploration.”
However, Mr. Gyeyir cautioned that “over-investing in hydrocarbons could prove risky if a future U.S. administration rejoins the Paris Agreement and withdraws funding”.
The Africa Senior Programme Officer at NRGI pointed out that hydrocarbon projects typically have long lead times, often exceeding 10 years. He cited, for instance, that some of the agreements Ghana signed sometime in 2012 and even in 2009 are yet to come into production.
Moreover, he also warned: “Over-focusing on attracting investment into the petroleum sector could also hinder progress in renewable energy”.
He contended that by the time a U.S. government shifts back to climate action, Ghana may have missed the opportunity to invest in renewable energy – which is the future.
Mr. Gyeyir was responding to a question during a press conference organised by the Civil Society Organisations (CSOs) Alliance on key policy reforms – on illegal mining, anti-corruption, energy transition and climate action – and therefore called for a balanced approach.
He recommended that Ghana revamp its oil sector while simultaneously focusing on the energy industry’s future, including renewable energy and electric vehicles.
The CSOs, working in the extractive and environmental sectors, during the press conference reaffirmed their commitment to partner with government on achieving shared goals of development, sustainability and good governance.
“We believe that by working together we can harness Ghana’s vast resources for the benefit of all while, ensuring the protection of our environment and well-being of future generations.”
While acknowledging the 120-day timeline outlined by government to undertake some major initiatives, they noted that there are critical issues requiring immediate attention.
The CSOs Alliance noted that the addition of ‘Green Transitions’ to the Ministry of Energy’s mandate is commendable. However, they maintained that “energy transition must extend beyond one ministry to achieve national impact”.
Given this, they recommended establishing a high-level coordinating body – akin to Nigeria’s Energy Transition Implementation Working Group or South Africa’s Presidential Climate Commission – to drive efforts across sectors.
They also called for the development of an integrated energy transition strategy by reviewing and aligning the existing Energy Transition Framework and Investment Plan with manifesto commitments.
Furthermore, they advocated the acceleration of investments in renewable energy by creating a favourable regulatory and investment environment to enhance the renewable component of the country’s energy mix.
Meanwhile, they added that energy transition must be linked to green minerals through mapping resources, promoting research and ensuring value addition within the country.
“Ghana must leverage its natural resources and global energy transition goals to become a leader in sustainable energy,” the CSOs Alliance stated.
To realise government’s commitment to addressing climate change through reforestation policies and modern agricultural infrastructure, they urged an immediate implementation of the ‘Tree for Life’ and ‘Blue Water Initiative’.
They also called on government to ban new mining activities in forest reserves and adopt innovative farming methods to preserve natural ecosystems. “These measures are essential not only for climate mitigation but also economic resilience.”
