The Centre for Economic Research and Policy Analysis (CERPA) has warned that Ghana could forfeit major climate finance opportunities and its early mover advantage in the global carbon market if urgent reforms are not undertaken to address weak institutions and policy gaps.
While the country has taken initial steps to position itself as a player in international carbon trading, such as engaging with Article 6 of the Paris Agreement and joining the World Bank’s Forest Carbon Partnership Facility, CERPA argues that poor regulatory coordination, overlapping institutional mandates, and limited capacity for verification and enforcement threaten to derail progress.
The think tank’s latest policy analysis, which shifts attention away from just the potential of carbon markets to the structural readiness of Ghana to capitalise on them, underscores a key concern that says, “Ghana’s carbon market ambition is outpacing its regulatory preparedness.”
CERPA highlighted that carbon markets could unlock billions in climate investments, create green jobs, and support rural livelihoods, but not without strong institutions, legal clarity, and transparency.
Despite being one of the first African countries to authorise the generation and transfer of mitigation outcomes under Article 6, CERPA says that real progress is being held back by weak legal frameworks, low public understanding of carbon rights, and a lack of transparency in existing carbon offset deals.
The report notes that overlapping responsibilities among government bodies, such as the Environmental Protection Authority (EPA), Forestry Commission, and Ministry of Environment create confusion for investors and raise the risk of regulatory capture.
CERPA’s analysis also reveals that Ghana lacks the technical infrastructure and skilled personnel needed to meet international standards for monitoring, verification, and enforcement of carbon credits.
“Without these capabilities, the country risks losing credibility in international markets and forfeiting access to emerging carbon finance streams that are increasingly performance-based and rigorous,” it said.
To correct course, CERPA recommends the swift finalisation and operationalisation of Ghana’s national carbon market framework.
The report also calls for a clear delineation of agency roles, harmonisation of standards, and strong legal provisions for benefit-sharing and dispute resolution.
Additionally, the Centre stresses the need for public education to improve awareness of carbon trading and ensure local communities are empowered to participate and benefit fairly.
With the African carbon credit market projected to be worth over $50 billion by 2050, CERPA called for decisive leadership, coordination, and investment in institutional readiness, particularly as the global race to monetise carbon sinks intensifies.
