Accra: The Select Committee on Environment, Science and Technology has expressed optimism about the socio-economic potential of the carbon market, urging businesses to explore its opportunities. The Committee highlighted the potential for the country to earn millions of dollars through taxes, fees, and direct investments into innovative smart technology, while also creating jobs, enhancing local air quality, and building resilience to climate change.
According to Ghana News Agency, the Committee’s leadership made these remarks following a two-day training on the progress of Ghana’s carbon market initiative. The training, organized by the Carbon Market Office (CMO) of the Environmental Protection Authority (EPA), aimed to educate committee members about the market’s prospects.
Mr. Yaw Frimpong Addo, Chairperson of the Committee, encouraged local businesses to engage with the carbon market value chain. He emphasized the importance of participation in boosting the economy and cautioned against repeating past mistakes, such as the limited earnings from cocoa exports. Mr. Addo noted the disparity in project proposals, with only seven out of 70 initiatives from Ghanaians. He assured that CMO officials would provide necessary guidance to businesses.
The carbon market allows entities to trade carbon credits, which represent reduced or avoided greenhouse gas emissions. This system enables countries like Ghana to generate funds and enhance climate ambitions while contributing to global emission reductions. A recent report estimates that Ghana’s carbon market could attract over one billion dollars in investment by 2030.
Professor Hamza Adam, Ranking Member of the Committee, described the carbon market as an emerging economy with significant revenue potential for Ghana. He highlighted projects such as clean cooking stoves, solar, and nature-based solutions, which could offer capacity-building opportunities for the youth.
Professor Nana Ama Browne Klutse, Acting CEO of the EPA, emphasized the carbon market’s role in meeting global climate obligations and building a resilient economy. She stated that the CMO is committed to scaling up projects and increasing local participation in the carbon market ecosystem. The Office aims to assist local service providers in securing accreditation to operate within the carbon market space by 2025.
Professor Klutse also indicated that the Office is promoting local manufacturing and assembling facilities to anchor carbon projects in Ghana. As of December 2024, the CMO received 70 project proposals focused on emission reductions and sustainable development, with clean-cooking initiatives leading the pipeline.
Ghana has signed bilateral agreements to trade carbon credits with countries such as Switzerland, Sweden, and Singapore, and is seeking further agreements with South Korea and Liechtenstein.
