Ghana is making bold moves in the Ghana’s Carbon Market and global carbon market, with projections pointing to over $1 billion in investments by 2030. As the country positions itself as a key player in Africa’s green economy, investors are eyeing opportunities in carbon credits, reforestation, and sustainable energy projects. With the right policies, Ghana could turn carbon trading into a financial powerhouse—if bureaucracy doesn’t get in the way.
Ghana is making significant strides in the global carbon market, with projections indicating that the country could attract over $1 billion in investments by 2030 through its carbon trading initiatives.
This move is expected to generate thousands of jobs, drive clean energy adoption, and position Ghana as a leader in Africa’s green economy.
Ghana has identified 24 million metric tonnes of carbon credits available for sale under Article 6.2 of the Paris Agreement, which allows countries to trade carbon credits to meet their emission reduction targets.
As part of its efforts to leverage this opportunity, Ghana has signed agreements with Switzerland, Sweden, and Singapore, while negotiations are ongoing with South Korea and Liechtenstein.
Switzerland has committed to purchasing carbon credits from Ghanaian projects, particularly in biogas and renewable energy, to help the European nation meet its climate goals, Sweden is also working with Ghana to facilitate international carbon credit transfers while ensuring sustainable development benefits, while Singapore is allowing Singaporean companies to buy Ghanaian carbon credits to offset part of their carbon tax obligations.
However, Ghana’s Carbon Market Office (CMO) has received 70 proposals for emission-reduction projects, spanning various sectors, including, 26 clean cookstove initiatives, aimed at improving energy efficiency, reducing indoor air pollution, and decreasing deforestation, three electric mobility projects, promoting the use of electric vehicles and sustainable transport solutions, and multiple nature-based solutions, such as reforestation and mangrove restoration projects, to enhance carbon sequestration.
The rapid expansion of Ghana’s carbon market is expected to have a far-reaching impact such as job creation, clean energy adoption and investments.
To ensure transparency and accountability, Ghana has established a robust International Carbon Market Framework, outlining procedures for developing and monitoring carbon projects.
The government has also initiated calls for project applications under bilateral agreements to authorize carbon credit sales.
However, challenges remain, including ensuring transparency, preventing fraudulent carbon credit transactions, and adapting to global market dynamics.
Last Updated on March 30, 2025 by samboad
