Ghana has launched a pioneering carbon credit pilot programme aimed at cutting greenhouse gas emissions and transforming rural economies through sustainable land-use practices, in line with its Paris Agreement commitments.
The initiative, currently in its two-year pilot phase from May 2024 to April 2026, is being implemented in five districts: Kumbungu, Tolon, and Savelugu in the Northern Region; Garu in the Upper East Region; and Nadoli in the Upper West Region.
It is designed to lay the groundwork for a robust, farmer-led carbon and biodiversity credit system.
The pilot, fully funded with £134,000 from UK Innovate, targets smallholder farmers and aims to develop a commercially viable platform to generate and trade carbon credits while restoring degraded lands.
If successful, it could position Ghana as a continental leader in voluntary carbon markets and biodiversity credit systems.
Ambitious Emission Reductions and Farmer Benefits
Dr. Alhassan Issah Suhiyini, a Research Associate at both the Ghana Standards Authority (GSA) and the University for Development Studies (UDS), is spearheading the project.
He said the model aims to sequester nearly 37 million tonnes of carbon dioxide over a 50-year commercial phase, scheduled from April 2026 to May 2076.
Core activities include tree planting, compost production, minimum tillage farming, and widespread adoption of clean cookstoves. These interventions are expected to achieve an average carbon sequestration rate of one tonne per acre in the first decade, rising to two tonnes per acre after 20 years.
Importantly, the project is being registered with the internationally recognised Gold Standard, enabling participating farmers to earn revenue through verified carbon credit trading. Additionally, the initiative will pilot biodiversity credits using a framework developed by the UK government.
“This is not just about reforestation, I t’s a transformative model that combines climate action with socio-economic empowerment,” Dr. Suhiyini explained.
Revenue Sharing Model Prioritises Farmers and Communities
Unlike most carbon offset programmes, Ghana’s model dedicates 80% of carbon credit revenue directly to farmers, setting a global precedent in community benefit-sharing.
The remaining 20% is earmarked for governance and sustainability structures, including local NGOs, traditional authorities, and regulatory bodies. Within that share, 10% will support broader community development projects, while the GSA will retain 10% for monitoring and administrative functions.
If scaled successfully, the commercial phase is projected to generate over US$64.5 billion in revenue over 50 years, with significant rural development dividends.
Empowering Women and Promoting Sustainable Land Use
The project also seeks to mainstream gender inclusion, targeting 60% female participation through farmer groups and cooperatives. Women involved in the shea value chain will benefit particularly from opportunities in collection, processing, and sales.
To further reduce environmental degradation, the programme promotes the conversion of agricultural biomass into briquettes for household fuel, thereby reducing deforestation caused by charcoal burning.
Dr. Suhiyini also highlighted the model’s potential for land reclamation, especially in areas affected by illegal mining (galamsey), making it a dual-purpose intervention for ecological restoration and economic revitalisation.
A Call for National and International Support
To move from pilot to full-scale implementation, the Ghana Standards Authority is seeking at least US$1.54 million in additional funding.
Dr. Suhiyini appealed to government ministries and climate finance institutions, including the World Bank and African Development Bank, to support the national rollout.
“This is a model that can reclaim degraded lands, reduce poverty, and attract climate finance,” he said.
“With the right investment and political will, Ghana can lead West Africa in leveraging carbon and biodiversity credits for sustainable development,” he added.
If scaled nationwide, the project could serve as a blueprint for similar initiatives across the region, supporting Ghana’s green economy while making its climate goals more attainable.
