Future policy direction in resolving climate change problem: Korean’s perspective

Ghana stands out among other African countries as a leader in its efforts to address climate change, particularly because of its solid policy, institutional and legal arrangements; having several climate change policies and frameworks in place.

Ghana’s efforts to address climate change remain commendable. The country is well-positioned to lead the African continent in climate action, particularly due to the establishment of the Ghana Carbon Market Office (GCMO), which helps to identify and manage greenhouse gas reduction projects.

It is expected that the implementation of additional climate programmes and initiatives will make it very easy for the country to secure climate financing and resources from a variety of sources, including international organisations. 

Nationally Determined Contributions

One promising area is the bilateral greenhouse gas reduction agreements, which leverage private sector finance and technology to help countries meet their Nationally Determined Contributions (NDCs) under the Paris Agreement.

These agreements allow countries to identify and implement greenhouse gas (GHG) reduction projects utilising private sector financial resources and technology.

Countries can secure financial resources following ITMO transfer and the allocated reduction amount for them to achieve their NDC goals.

For a country like Ghana, these projects offer significant advantages that the country can greatly benefit from, including the creation of new jobs and technology transfer from developed countries.

Proactive approach

Moving forward, the government must adopt a proactive approach to diplomacy; engaging with developed nations to secure the necessary technology and financial support.

Rather than waiting for advanced countries to approach them first to offer assistance, Ghana should take a more proactive role in forging partnerships to advance its development goals.

In support of Ghana’s efforts in tackling climate change, a Korean environment expert residing in Ghana proposes the following policy recommendations to further accelerate the country’s progress towards achieving its climate targets:

Policy recommendations

Enactment passage  law

To enhance Ghana’s climate governance and align with its commitments under the Paris Agreement, the government should enact climate-specific legislation such as the pledged National Climate Change Law to establish more legally binding and enforceable commitments.

This Law will strengthen the country’s legal and regulatory landscape, accelerate the achievement of its climate goals and facilitate the transition to low-carbon, climate-resilient development.

The Law may draw from existing climate policies and frameworks, as well as sector policies and regulations, to provide a much-needed legal backing to further strengthen these policies and frameworks.  

By enacting such a law, Ghana can strengthen its climate governance, unlock climate finance and position itself as a leader in Africa’s carbon market. 

Innovative climate finance resource Mobilising climate financing is crucial to achieving Ghana’s NDCs, as well as its national development goals.  

One key initiative this new government can implement is issuing Green Bonds, which will provide dedicated funding for green projects such as renewable energy projects, sustainable agriculture and climate-resilient infrastructure.

Green bonds present a unique opportunity to involve the private sector in climate financing while diversifying the country’s investment portfolio, rather than relying on debt and equity from development partners.

Lessons can be drawn from Kenya’s Green Bond Programme, through which Acorn Holding Limited, a real estate firm in Nairobi, was able to raise up to USD 4 million for the development of environmentally friendly student accommodation.

Ghana has commendably taken initial steps towards adopting green bonds as a source of mobilising climate financing by issuing the Securities Industry (Green Bonds) Guidelines (2024) in alignment with the Green Bond Principles set by the International Capital Market Association (ICMA). However, the country is yet to issue its first green bond. 

Local climate change fund

Ghana faces a significant climate financing gap, which poses a major barrier to achieving its NDCs.

Ghana predominantly relies on funding from international agencies to finance climate change projects and initiatives.

However, it is imperative that a local climate change fund be established to fund the country’s climate change projects and initiatives.

Potential sources of funds can include revenue generated from other taxes and levies such as the emissions levy and vehicle emissions tax. 

Green projects inventory

The government, through the appropriate agency, could establish a Green Project Inventory, which will serve as a centralised database where both the government and private entities can register projects in need of funding and investment, particularly from external sources.

Investors can leverage this inventory to efficiently identify and select projects that align with their investment interests, while also enabling local green businesses to attract the financing they need.

This system will enable the efficient identification of priority projects, highlight key investment sectors, help direct resources to underfunded sectors and enhance transparency and accountability. 

Technology transfer

Enhancing international partnerships and technology transfer is crucial for Ghana’s transition to a low-carbon and climate-resilient economy.

Through bilateral agreements and partnerships with technologically advanced international organisations and countries such as South Korea, Ghana can gain access to global green funds, technical expertise and climate-friendly innovations.

Partnering with organisations such as the Korea Environmental Industry and Technology Institute (KEITI), development banks and technology leaders can accelerate the deployment of renewable energy solutions, climate-smart infrastructure and sustainable agriculture practices.

Finally, although national pride is important, ultimately, Ghana’s priority should be its economic development and the well-being of its people.

With the right strategies, the country can achieve a brighter, more sustainable future for all its citizens.

The writer is Chief Representative ,of Ghana Representative Office, of KEITI. Email: kimhs1@keiti.re.kr