Ghana’s forests could become a new source of economic value as the global push to reduce carbon emissions creates opportunities for countries to earn income from protecting and restoring natural ecosystems, experts have said.
For decades, forests have largely been viewed through the lens of timber, biodiversity and environmental protection. However, growing interest in climate finance is creating a new market where forests can generate financial returns by helping to reduce the amount of carbon dioxide released into the atmosphere.
This market, known as forest carbon markets, allows activities such as protecting forests, restoring degraded lands and planting trees to generate carbon credits, certificates representing a verified reduction or removal of greenhouse gases from the atmosphere.
In simple terms, a carbon credit gives financial value to actions that help fight climate change. Companies or organisations seeking to reduce their emissions can purchase these credits to support projects that remove or prevent carbon emissions.
Senior Research Scientist at the Council for Scientific and Industrial Research-Institute for Industrial Research (CSIR-IIR), Dr. Kofi Ampomah Benefo, said forest carbon markets represent an emerging business opportunity created by the global response to climate change.
Speaking at the launch of Transparency International Ghana’s (TI-Ghana) project on inclusive governance for forest carbon markets, Dr. Benefo explained that forests play a critical role because trees absorb carbon dioxide from the atmosphere and store it.
“Forest carbon is basically the absorption of carbon dioxide by trees,” he said.
He explained that as the world seeks solutions to limit global temperature increases, activities that reduce greenhouse gas emissions are becoming increasingly valuable.
“If anybody can do something that will reduce the carbon emissions that we create, then there is some kind of business,” Dr. Benefo said.
According to him, the carbon market should be understood like other markets where goods and services are exchanged, except that in this case, the value comes from verified environmental benefits.
He said Ghana’s participation in the market could create opportunities for government, private sector actors, communities and investors to benefit from climate-related financing.
The opportunity is also attracting attention because of the growing global demand from companies seeking to reduce their carbon footprint and meet environmental commitments.
However, stakeholders say the success of Ghana’s forest carbon market will depend on how well the country manages issues around transparency, governance and benefit sharing.
Project Coordinator at TI-Ghana, Michael H. Okai, said strong institutions and accountable systems would be necessary to ensure that climate finance delivers benefits for both communities and the environment.
There are also ongoing discussions around ownership rights, particularly regarding who should benefit from carbon credits generated from forests. Experts have noted that questions around land ownership, tree ownership and carbon rights must be clearly addressed to provide confidence for investors and communities.
As interest in carbon markets expands globally, Ghana’s forests could become more than natural resources, they could become part of a new green economy where conservation creates financial value.
