By: Hannah DadzieThe UK government and development partners have held a Roundtable in Accra, to build on the success of the Carbon Market Development Roundtable 2022.
The development partners include Ghana’s Environmental Protection Agency, Ghana’s Forestry Commission, Foundation for Climate Protection and Carbon Offset (klik) and the Embassy of the Netherlands. It brought together project developers, traders, verifiers and other sector experts to discuss the progress and ongoing potential of Ghana’s carbon market.The discussion focused on two key areas for Ghana, which are progress on cook-stove emissions and the protection of Ghana’s forests. It also focused an update on Ghana’s carbon market and regulatory framework, a discussion about structuring carbon projects and lessons learned, a session on the forestry sector and a deep-dive into global standards for carbon trading.
Speaking ahead of the event, British High Commissioner, Harriet Thompson said Ghana is embracing and growing its carbon market at time when the world is looking for smart climate finance solutions. According to her, this is important as nations come together to work towards ambitious climate commitments ahead of COP28.‘‘As a long-term partner to Ghana and as a global champion of carbon markets, we are determined to bring together governments, civil society organisations, experts, policy-makers, businesses and investors to realise Ghana’s carbon trading potential. A potential that will create economic opportunities and protect Ghana’s beautiful forests and green spaces.” She addedGhana is showing global leadership in the supply and selling of carbon credits under the Paris Agreement’s Article 6 international trade provision. The recently published ‘National Carbon Market Framework’ means Ghana has one of the most advanced carbon markets across Africa. The Framework has created levies on carbon credit exports, and is supporting the growth of relationships with nations buying carbon credits and opening opportunities with new trading platforms.Since, the first Carbon Market event, Ghana has made substantial progress by receiving its first payment through the UN’s Reducing Emissions from Deforestation and Forest Degradation+ scheme (REDD+ scheme), Developing Swiss-Ghana collaboration around carbon projects. The new framework has seen major businesses developing their plans to invest carbon offset finance in Ghana.
UK’s support for carbon markets
The UK is a strong supporter of carbon pricing and a pioneer on carbon markets, through both domestic action and its support for the uptake of carbon pricing schemes around the world. The UK is working through international fora to set the foundations for a credible new global carbon trading system rooted in environmental integrity. Through its International Climate Finance, BEIS are providing £130m to support more ambitious carbon pricing, and to enhance the integrity of the international carbon market, using new and innovative approaches that reduce emissions and leverage investment.
The UK currently supports over 30 low- and middle-income countries to implement domestic carbon pricing initiatives, such as a carbon tax or emissions trading system, or through baseline and crediting approaches through its engagement in multi-donor funds.Carbon markets is the generation and trade in units (also referred to as credits) which represent a tonne of greenhouse gas (GHGs) that is either avoided, by protecting threatened standing forests reduced through cleaner technology, or removed from the atmosphere through planting trees.
It can also be trade in allowances, for instance, a permit to emit one tonne of greenhouse gas under Emissions Trading Schemes like the UK’s.
