Ghana’s Carbon Market is expected to attract more than one billion dollars in investments by 2030, creating jobs and promoting clean energy solutions, a new report by the Carbon Market Office (CMO) has revealed.
The funds will come from potential investments in projects that reduce greenhouse gas emissions as well as revenue from fees.
Carbon trading allows companies and countries to buy and sell carbon credits – permits that represent a reduction or removal of greenhouse gases like carbon dioxide (CO₂).
One carbon credit equals one tonne of CO₂ emission reduced, removed, or avoided.
This system helps countries like Ghana to raise money for climate-friendly projects while cutting down emissions.
Ghana’s Progress in Carbon Trading
Ghana has put in place policies and regulations to ensure it benefits from carbon trading.
So far, 24 million metric tonnes of its 64 million metric tonnes of carbon credits have been made available for sale under Article 6.2 of the Paris Agreement.
The report said 70 projects had been submitted to the CMO for approval as of December 2024.
These projects aim to cut emissions and promote green development in Ghana.
The report said the clean cookstove initiative that dominated the project pipeline, which sought to distribute 9.1 million stoves by 2030, led the proposals with 26 projects.
Project developers had proposed three electric powered mobility products with the quest to distribute 120,160 e-bikes and e-vehicles.
The report noted that 15 of the proposed projects received were focusing on 15 nature-based solutions; two on biochar, three in solar energy generation, two waste water, and six electronic vehicles.
Ghana’s International Carbon Trading Agreements
Ghana has already signed agreements with Switzerland, Sweden, and Singapore to sell carbon credits.
The Swiss agreement is currently being implemented while discussions with South Korea and Liechtenstein are ongoing.
The report says the carbon market will bring in more investments, create jobs, and support Ghana’s fight against climate change.
It will also encourage businesses and individuals to adopt cleaner technologies, such as improved cookstoves and electric vehicles.
With the right policies and investor support, Ghana could become a key player in Africa’s carbon trading system.
In the latest Paris Agreement Article Six Implementation Status Report, Ghana stands out, having successfully engaged with five acquiring Parties.
“Parties that have progressed most include those that begun projects and met existing reporting requirements, including Ghana, Guyana, Suriname, Switzerland, Thailand, and Vanuatu,” it said.
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