By Juliet ETEFE ([email protected])
Green Tax Youth Africa (GTYA) has opposed a proposal by Majority Leader Mahama Ayariga to establish a pension scheme for retired parliamentarians funded by carbon credit revenues.
The advocacy group describes the motion as misguided and a direct contradiction of green financing’s intended purpose, arguing that such revenues should be dedicated to addressing climate change through investments in renewable energy, carbon offset initiatives and green entrepreneurship.
GTYA criticised the justification that using carbon credit funds for a parliamentary pension scheme would reduce taxpayer burdens while promoting sustainability.
According to the organisation, this claim is misleading and does not align with principles of environmental finance. Instead, it creates an exclusive financial benefit for a select group of individuals at the expense of Ghana’s broader sustainability agenda.
“Carbon credit revenues and green financing mechanisms are designed to address the pressing issues of climate change by funding renewable energy projects, carbon offset initiatives and green entrepreneurship. Redirecting these funds to sustain a pension scheme for a select group of individuals undermines their fundamental purpose and contradicts global best practices,” the group states.
“The argument that retired MPs deserve additional pension security is redundant. Articles 98 and 114 provide guidelines to Article 71 of the 1992 Constitution, which already guarantees pension benefits for MPs and other high-ranking public officials. There is no justification for establishing another pension scheme that disproportionately benefits individuals who have already had access to significant financial resources during their tenure,” it added.
The group emphasised that Ghana’s pension system already suffers from deep structural inequalities, where only a small percentage of high-income earners benefit from existing schemes while the majority, particularly those in the informal sector, struggle to secure financial stability post-retirement.
Rather than diverting carbon credit revenues into pensions for a select group, GTYA proposed a series of alternatives to ensure that sustainability funds are used effectively.
It called for parliament to establish an internal welfare mechanism that supports struggling former MPs without burdening national or development funds.
The group also advocated for a complete overhaul of the country’s pension system to ensure equitable benefits across all sectors, including private and informal workers.
Additionally, it urged a thorough review of the country’s Green Bond Guidelines to ensure that revenues from carbon credits are directed toward climate solutions such as renewable energy projects, nature-based solutions and Small- and Medium-size Enterprises developing green technologies.
It recommended that proceeds from carbon credits should be invested in community-driven climate adaptation projects that benefit vulnerable populations rather than political figures.
The organisation also suggested that Ghana study and adapt the European Green Deal model to channel funds into impactful environmental and economic initiatives which drive national development.
It emphasised that the country’s economic and environmental future should be shaped by policies which serve the entire population, not just a minority.
