Ghana is set to sell 24 million of its 64 million metric tonnes of carbon credits to prospective buyers under Article Six of the Paris Agreement. This is to help reduce emissions, create green jobs and foster innovation.
Carbon credits are avoided greenhouse gas emissions which are used in exchanged of funds to ensure sustainable development initiatives. Each carbon credit is worth one metric tonne of carbon dioxide.
President John Mahama who disclosed this at the State of Nation Addresss (SONA), said out of the total carbon credits available 5.2 million tonnes had already been allocated to three key projects, focusing on sustainable rice cultivation, waste to compost conversion and transformative cookstoves.
“We pledge to align our national policies with international efforts to limit global warming to 1.5°C by 2050 and promote a fair and just transition to renewable energy sources,” President Mahama said.
He said through the Ghana Carbon Market under the Environmental Protection Agency, 68 carbon market projects are currently under review at various stages of approval.
Nonetheless, Ghana has also signed bilateral cooperation agreements with Switzerland, Sweden, and Singapore to facilitate carbon trading, while discussions with South Korea are at the cabinet level.
At the 29th United Nations Climate Change Conference (COP29) held in Baku, Azerbaijan, significant progress was made in operationalizing global carbon markets.
Negotiators adopted standards for a UN-backed global carbon crediting mechanism, crucial for meeting emissions reduction goals.
Importantly, this development is expected to influence existing voluntary carbon markets by promoting standardization and increasing confidence among participants.
