The Youth Climate Council Ghana (YCC), an independent youth institutional mechanism for the youth climate movement in Ghana expresses deep concern and strongly opposes the recent proposal by parliament to establish a pension fund scheme for Members of Parliament (MPs) using revenues from the carbon market.
YCC noted that, the proposal directly undermines Ghana’s climate commitments and constitutes a blatant misuse of key climate finance intended for national sustainability efforts.
“The Paris Agreement, under Article 6, explicitly provides the framework for carbon markets, both voluntary and compliance, with the clear objective of advancing climate action and sustainable development. Diverting these funds away from their intended purpose violates international commitments and weakens Ghana’s ability to meet its emissions reduction targets.
“Carbon credit revenues must be strictly allocated to greenhouse gas (GHG) mitigation initiatives such as renewable energy expansion, reforestation, climate-smart agriculture, and waste management.
“This highlights the crucial contribution of Ghana’s carbon credit system, the “polluter pays” principle and the Paris Agreement’s commitment to climate finance integrity so any deviation from this mandate is an unjustifiable breach of trust and a setback for climate justice in Ghana,” it stated.
YCC further argued that “under Ghana’s Nationally Determined Contributions (NDCs), we aim to reduce greenhouse gas emissions by 64,000 ktCO₂e by 2030. A significant portion of this reduction relies on carbon market mechanisms and international financial support.
“Ghana requires between US$ 9.3 and US$ 15.5 billion of investment to implement the 47 NDC measures from 2020 to 2030 according to the updated NDC document which serves as a stark reminder of the importance of having internally or nationally generated funds to effectively meet our climate commitments and ensure the long-term success of environmental initiatives.
“Also, Ghana’s Carbon Market Framework identifies a major capacity gap in carbon trading expertise and institutional readiness, which must be addressed to fully benefit from global carbon markets”.
As such, “With only 33% of the Tier 2 emission reduction target met, every available fund must go toward climate mitigation, not personal financial benefits. Moreover, it is a known fact that countries in the global south including Ghana are highly climate-vulnerable, and resiliencebuilding such as protecting communities from extreme weather and coastal erosion is even more urgent nationwide.”
“While we acknowledge that MPs, like all workers, deserve a fair and structured pension scheme, this must not come at the expense of Ghana’s already limited climate funds, which are essential for achieving sustainability,” it stated.
The Youth Climate Council Ghana urges Parliament to immediately revoke this proposal and ensure that all carbon credit revenues are directed toward fulfilling the key commitments of the carbon market framework aforementioned.
It instead proposed that Parliament explores more innovative and sustainable revenue sources, such as reviewing current mining leases to increase Ghana’s revenue share, with even 1% dedicated to funding the MPs’ pension scheme.
“We call on civil society organisations, climate activists, and the general public to reject this proposal and demand greater accountability in climate finance governance. As young climate advocates, we remain committed to safeguarding Ghana’s environmental future, ensuring that climate finance serves its rightful purpose thus building a sustainable, climate-resilient nation for all.
“Parliament must prioritise long-term economic and environmental sustainability over short-term political convenience. Ghana’s carbon market revenue must remain intact for climate action,” it stressed.
