Ghana is actively developing new funding strategies to support its forest and climate goals, moving beyond traditional grants to embrace market based solutions.
According to Dr. Jewel Andoh, a Forestry and Environmental Economist at the Council for Scientific and Industrial Research (CSIR), instruments like carbon credits and green bonds are pivotal for this transition.
Dr. Andoh explained that the country can no longer depend solely on government funds and international donors. He stated, “Carbon markets and green bonds offer Ghana a new frontier.” This approach treats the nation’s vast forests not as a cost but as a valuable natural asset that can generate sustainable economic returns.
Under its REDD+ strategy, Ghana aims to monetize the carbon sequestration services its forests provide by selling verified carbon credits. This creates a revenue stream to finance reforestation and community livelihoods. The existing Ghana Cocoa Forest REDD+ Programme is cited as a successful model of this mechanism.
However, Dr. Andoh cautioned that success hinges on robust data systems and transparent governance. Without strong monitoring and verification, the country risks undervaluing its resources and losing investor trust.
Beyond carbon credits, green bonds present another significant opportunity. These bonds could fund projects from forest restoration to sustainable agriculture, tapping into a global market worth over $1.5 trillion. Dr. Andoh suggested the Ministry of Finance and the Securities and Exchange Commission collaborate on a national framework for issuing them.
For these financial instruments to attract private investment, he emphasized that credible science and inclusive benefits are non-negotiable. Local communities must see direct economic value in conservation for these initiatives to succeed long term.
With an estimated annual funding gap of over $2 billion for its climate targets, Ghana’s foray into green finance is both a necessity and a strategic economic opportunity. It represents a fundamental shift toward making environmental stewardship a core pillar of national development.
