By: Joyce Gyekye
Ghana has signed bilateral agreements with Sweden and Singapore on carbon credits under Article 6 of the Paris Agreement.
The agreements, which will be the third including Switzerland, set the framework conditions for cooperation to help Ghana implement her Nationally Determined Contributions, NDCs of the Paris Agreement. It aims at keeping global temperature rise to below 2 degrees Celsius. The agreements will enable the adoption of green and low carbon technology solutions as well as create jobs and address environmental issues.
Ghana’s Minister of Environment, Science, Technology and Innovation, Ophelia Mensah Hayford, signed the virtual agreements with the Director General of the Swedish Energy Agency, Robert Andren and Singapore’s Minister for Sustainability and the Environment, Grace Fu. After the signing the countries will commence with the ratification process and operationalize the agreements.
This sets out a legally binding framework and processes for the generation and international transfer of carbon credits between Ghana and Sweden and similarly between Ghana and Singapore. Minister of Environment, Science, Technology and Innovation, Ophelia Mensah Hayford said Ghana and Singapore started exploring bilateral cooperation regarding Article 6 of the Paris Agreement in 2020.
This was approved by the cabinet in 2023 and a Parliamentary approval in February 2024. She said “The agreements would be implemented within six years with the possibility of an extension based on the availability of Internationally Transferred Mitigation Outcomes (ITMOs) for exchange.”
Madam Hayford stated that the implementation of the pacts would lead to positive socio-economic, and environmental benefits for the countries. She said the agreements would be implemented through the private sector, with the government playing a facilitative role.
Madam Grace Fu said Singaporean companies have started exploring business opportunities in Ghana and in view of this a business team will be in the country in July this year.The agreement with Singapore includes sustainably growing cocoa trees in shaded farms to protect them from climate impacts like heat stress and pests within the Kwawu area in the Eastern region.
ITMO, is a driving concept in Article 6 of the Paris Agreement which allows countries to cut their greenhouse gas emissions by investing in projects that reduce emissions in other countries
