Transition to Green Economy is Not Charity but Smart Economics

Accra: Mr. Paa Kwasi Koomson, Former Vice President of Bank of America, emphasized that transitioning to a green economy is a strategic economic decision rather than an act of charity. He highlighted that Africa needs approximately US$184 billion annually to achieve its climate objectives under the Paris Agreement. This financial requirement, he argued, offers a chance to leverage blended finance and attract private sector investments.According to Ghana News Agency, Mr. Koomson shared these insights at the inaugural West African Green Economy Roundtable 2025 (WAGER 2025) and Awards Ceremony in Accra. The event, organized by the Pent Media Centre (PMC) of the Church of Pentecost (COP), focused on the theme: 'Advancing Sustainable Development through Green Growth in West Africa.' Mr. Koomson elaborated that embracing a green economy is crucial for job creation, reducing energy poverty, enhancing food security, and building resilience against climate shocks in West Africa.He noted the presence of ample globa l capital but pointed out the need for viable green projects, robust partnerships, and transparent governance to effectively channel these funds. Mr. Koomson advocated for scaling up innovative financial instruments like green bonds and sustainability-linked loans, coupled with supportive policies to assure investors of financial and environmental returns.Mr. Koomson also underscored the untapped potential of African financial institutions, such as banks, pension funds, and insurance companies, which collectively hold substantial assets. Redirecting even a small portion of these funds into renewable energy and sustainable infrastructure could lead to significant economic transformation, he stated. He encouraged stakeholders at WAGER 2025 to commit to concrete, actionable plans and partnerships that would boost investor confidence.In a related address, Mr. John Jinapor, the Minister of Energy and Green Transition, represented by Mr. Solomon Adjetey, Chief Director of the Ministry, remarked on Africa's unde rutilized renewable resources. Despite possessing 60% of the world's prime solar resources, the continent's development is hampered by outdated grids, high financing costs, and widespread energy poverty.Mr. Jinapor urged African leaders, private investors, and international collaborators to adopt ambitious strategies within the continent's Energy Transition Framework. This framework, he noted, aims for sustainable growth, energy security, and economic transformation by offering incentives like tax breaks and streamlined regulations to attract private capital.He emphasized the need for regional cooperation and policy harmonization to reduce costs and improve access, referencing initiatives like the African Continental Master Plan and EU-Africa Global Gateway. These efforts aim to mobilize substantial funding for green projects. Additionally, Mr. Jinapor advocated for integrating AI in grid optimization and exploring green hydrogen production, positioning Africa to fulfill its energy needs and emerge as a c lean fuel exporter.