The Ghanaian government is taking significant steps towards regulating the production of carbon credits within its borders, as announced by the Minister of Lands and Natural Resources, Samuel A Jinapor. This move aligns with a continental trend where countries like Zimbabwe and Kenya are implementing similar measures to ensure equitable distribution of benefits from offset projects.
Landscape view of nature around Wli waterfalls, Ghana.
At the inaugural Africa Climate Summit, the African Union committed to enhancing Africa's presence in carbon markets, prompting Ghana's decisive action. Minister Jinapor, speaking during an interview in Nairobi, Kenya, stated, ‘We need a proper framework, legislation, and policy to regulate Ghana's carbon market, and we are actively working on it.’
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Carbon credits, each representing the removal or prevention of a tonne of carbon dioxide, are vital in mitigating climate impacts. However, in Africa, they've historically fetched lower prices, currently averaging less than $10 per tonne compared to over $100 in other regions. The proposed Ghanaian legislation aims to address these disparities.
Key provisions expected in the legislation include the registration and verification of carbon credits, monitoring environmental standards, and fair benefit-sharing among stakeholders. While regulation offers environmental benefits and prevents abuse, some cost increases and political challenges need careful consideration.
As the global carbon credit market, valued at $2 billion annually, continues to grow, Ghana's efforts to enact comprehensive legislation reflect a commitment to sustainable development and environmental responsibility.
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