Take advantage of carbon market potential – Parliament advises businesses

The Select Committee on Environment, Science and Technology is optimistic about the carbon market. They encourage businesses to explore its potential.

The Committee believes Ghana could earn millions from this market. It could generate taxes, fees, and investments in smart technology. This would create jobs for local communities and improve air quality. Additionally, it would help build resilience against climate change.

The call to action came after a two-day training session. The training focused on Ghana's carbon market initiative organized by the Carbon Market Office (CMO) of the Environmental Protection Authority (EPA).

Mr. Yaw Frimpong Addo, the Committee Chairperson, urged local businesses to engage with the carbon market. He emphasized identifying opportunities within its value chain.

“I am learning about revenue streams in this value chain,” he said. He warned against repeating past mistakes like those in the cocoa sector.

Mr. Addo noted that only seven out of 70 project proposals were from Ghanaians. Most proposals came from foreign entities. He acknowledged that technicalities exist but assured support from CMO officials.

As a Member of Parliament for Manso Adubia Constituency, Mr. Addo plans to educate others about these opportunities.

The carbon market allows companies and countries to trade carbon credits. Each credit represents one ton of greenhouse gas emissions reduced or avoided.

This system helps Ghana raise funds and enhance climate goals while contributing to global emission reductions.

A recent report estimates that Ghana’s carbon market could attract over one billion dollars by 2030.

Professor Hamza Adam, the Ranking Member of the Committee, sees great potential in this emerging economy. He believes Ghana can generate significant revenue through various projects.

He mentioned technology-based solutions like clean cooking stoves and solar energy as key areas for development.

“Our youth can benefit from capacity building,” he added. They can learn skills for monitoring and reporting services previously handled by foreigners.

Professor Nana Ama Browne Klutse, Acting CEO of the EPA, highlighted the carbon market's potential for meeting global climate obligations. She stated that CMO aims to increase local participation in this growing ecosystem.

One focus area for 2025 is helping local service providers gain accreditation in the carbon market space. She also mentioned promoting local manufacturing and assembly facilities for carbon projects in Ghana.

As of December 2024, CMO received 70 project proposals aimed at reducing emissions and promoting sustainable development.

Leading these is a clean-cooking initiative targeting 9.1 million efficient stoves by 2030; it accounts for 26 proposals so far.

Other proposals include three electric mobility projects aiming to distribute over 120,000 electric bikes and vehicles.

Additionally, there are 15 nature-based solution projects along with initiatives focusing on solar energy and wastewater treatment.

Ghana has signed agreements with Switzerland, Sweden, and Singapore to trade carbon credits. An agreement with South Korea awaits Cabinet approval while negotiations continue with Liechtenstein.