Dep. Finance Chief Ampaabeng calls for AfDB leadership in enhancing Continent’s carbon market transparency

Deputy Finance Chief Dr. Alex Ampaabeng at a Ministerial Roundtable Event during the African Development Bank (AfDB) 2024 Annual Meeting, has urged the AfDB to take a proactive role in enhancing the transparency of carbon markets through strategic investments in innovative technologies.

Highlighting the importance of digital monitoring, reporting, and verification, Dr. Ampaabeng emphasized that these advancements would help Africa attract better carbon pricing and foster sustainable economic growth and transformation.

The Ministerial Roundtable discussion, titled “Carbon Markets in Africa: Unpacking Complexity, Embracing Opportunities,” focused on the potential benefits of a well-established compliance carbon market for the Continent.

Dr. Ampaabeng noted that such a market would enable Africa to harness its collective climate action efforts while addressing significant financial gaps in adaptation strategies. He stressed the necessity for collaboration among African countries and global cooperation to ensure fair contributions from the Global North in mitigating climate challenges.

“We strongly urge the African Development Bank (AfDB) to take a leading role in enhancing the transparency of carbon markets through strategic investments in innovative technologies. By supporting advancements in digital monitoring, reporting, and verification, Africa will attract better carbon pricing.

“These efforts will not only bolster our collective climate action but also foster sustainable economic growth and transformation,” Dr. Ampaabeng stated.

With the global need for trillions of dollars in climate action funding, interest in carbon markets is rapidly growing as a key innovation for scaling climate finance.

Africa, with its vast natural assets, holds significant potential in carbon markets, offering opportunities to channel international investment into climate mitigation and adaptation.

Leveraging carbon markets can drive African-led development priorities, such as expanding energy access, promoting sustainable agriculture, protecting ecosystems, developing skills, and creating jobs.

To achieve Africa’s ambitious carbon market agenda, a common understanding of the market’s challenges and opportunities is essential. This includes comprehending the current state, trends, priority initiatives, regulatory tools, knowledge systems, and market gaps.

Speaking further at the Ministerial Roundtable Event and outlining Ghana’s strategic advancements in utilizing carbon markets toward achieving the country’s climate commitments under article 6 of the Paris Agreement, Dr Ampaabeng averred Ghana has pledged to reduce 64 million tonnes of greenhouse gas emissions by 2030, setting the nation on course to a net-zero emissions pathway by mid-century.

This will, however, require a $6.3 billion investment across vital sectors such as energy, transport, industry, waste, and forestry.

“We have established a credible rule-based national arrangement to regulate generations, safeguard and certification, authorisation, and international transfer of carbon credits,” Dr Ampaabeng added.

Ghana is currently involved in five Government-to-Government (G2G) cooperative approaches and an innovative Government-to-Private (G2P) approach with partners including Switzerland, Sweden, Singapore, South Korea, and Liechtenstein, as well as with corporate giants such as Mercuria Energy and British Petroleum.

Under the Ghana-Switzerland agreement, the country is progressing with 12 projects, of which eight are expected to mobilise approximately $850 million in investments and at least 7,000 green decent jobs by 2030. This underscores the country’s dual commitment to reducing emissions and fostering economic growth and job creation.