Ghana has taken a key institutional step in its push to modernise rice production and tap into global carbon finance markets, with the United Nations Development Programme (UNDP) and the Government of Ghana convening the inaugural Steering Committee meeting for a landmark climate-smart agriculture project.
The initiative, one of two nationally approved UNDP-led mitigation activities under the Ghana-Switzerland bilateral cooperation framework pursuant to Article 6.2 of the Paris Agreement, promotes the Alternate Wetting and Drying (AWD) irrigation technique as a scalable tool for climate mitigation and sustainable agriculture. AWD reduces methane emissions from rice fields by up to 30 percent, saves as much as 30 percent of irrigation water, and helps farmers maintain or increase yields.
By 2030, the initiative aims to reach 11,000 farmers across 242,600 hectares of rice fields, avoiding an estimated 1.3 million tonnes of carbon dioxide equivalent emissions.
The formation of the Steering Committee marks a significant governance milestone for the project. The committee brings together stakeholders from government agencies, farmer organisations, research institutions and development partners, with a mandate to approve annual budgets, monitor performance, manage operational risks and coordinate policy to support nationwide scaling of the AWD model.
Speaking at the event, Dr. Abdul-Razak Saeed, UNDP Ghana’s Head of Environment and Climate, described the project as “more than a climate intervention” and a “research-driven development solution,” adding that scaling AWD can cut methane emissions, improve farmer livelihoods, and demonstrate how high-integrity carbon markets can drive sustainable development.
Beyond the farm-level benefits, the project introduces a new revenue mechanism for Ghana’s agricultural sector. The initiative generates Internationally Transferred Mitigation Outcomes (ITMOs), which Switzerland will purchase under a performance-based climate finance model, providing results-based financing that links environmental outcomes directly to economic returns.
The broader bilateral programme falls under a $42 million pay-for-results collaboration between the Swiss Federal Office for the Environment (FOEN) and UNDP, making it one of the most substantial Article 6.2 arrangements on the African continent.
The project targets rice farmers in approximately 78 percent of Ghana’s rice production areas and aims to deliver an emission reduction target of 1.1 million tonnes of carbon dioxide equivalent by 2030, while providing farmers with additional income through carbon revenue.
For Ghana, the initiative also serves a broader strategic purpose. Rice remains a significant import commodity, and improving the competitiveness of local production through lower input costs and higher yields could reduce the country’s import bill over time. The governance structure established by the Steering Committee is expected to strengthen accountability and investor confidence as the project moves toward nationwide implementation.
