Ghana champions financing mechanisms to build resilience for climate change

 

Ghana is leading efforts to transform the Climate Vulnerable Forum and the Vulnerable 20 Group (V20) of Finance Ministers into a permanent Inter-Governmental Organization.

The primary goal is to advocate for a “Fair Share” Agenda, seeking appropriate financing for 29 adaptation, mitigation, and loss and damage measures.

Additionally, the country aims to leverage its natural resources to raise carbon financing, accelerate climate action, and ensure that the 1.5-degree Celsius temperature threshold is not exceeded.

Finance Minister Ken Ofori-Atta shared these objectives while addressing Parliament during the 2023 Mid-Year Budget Review.

Currently, Ghana’s President chairs the Climate Vulnerable Forum, while the Finance Minister leads the V20 Group—an organization representing 58 countries with a combined population of 1.5 billion people, predominantly in climate-affected regions of the world.

Mr. Ofori-Atta revealed that Ghana has already formulated a framework for the V20 Climate Prosperity Plan, designed to attract climate investments from the private sector.

It is estimated that climate change could cost Ghana approximately 1.7 percent of its GDP annually by 2030 if not adequately addressed.

To attract foreign direct green investments and benefit local businesses, the government is actively working to secure carbon financing that will support its Nationally Determined Contributions (NDCs) and fulfill its commitments under the Paris Agreement.

“As part of our efforts to address loss and damage from climate change, Ghana, as one of the first pathfinder countries, launched the in-country process for Ghana’s participation in the Global Shield against Climate Risk and the Global Risk Modelling Alliance.

“These initiatives will enable us to assess quantitatively our climate risk, design solutions informed by the data and facilitate access to resources from the Global Shield,” noted Mr. Ofori-Atta.

The government, in partnership with the Green Climate Fund, has established the Ghana Shea Landscape Emission Reduction Project (GSLERP) at an estimated cost of US$54.5 million.

The Project will focus on the Shea Landscape and will address the country’s efforts to reduce emissions from deforestation and forest degradation (REDD+).

“Additionally, government is implementing the Ghana Cocoa Forest REDD+ Programme (GCFRP), which covers 5.9 million ha – 79% off-reserve, 21% on reserve – in seven regions. The programme will benefit 12 million urban and rural residents,” said Ken Ofori-Atta.

Ghana became the second African country after Mozambique to receive FCPF REDD+ payments in January 2023.