Climate advocates are opposing Parliament’s proposal to fund a pension scheme for MPs using revenues from carbon credit trading, calling it a reckless diversion of critical climate funds.

The proposal, introduced by Majority Leader Mahama Ayariga, has led to the formation of a committee to explore its feasibility.

Air pollution is the world’s top environmental health threat, cutting life expectancy more than malaria, HIV/AIDS and traffic accidents combined. In 2021, it caused 8.1 million deaths—700,000 of them children under five.

However, critics insist it undermines Ghana’s climate commitments and misuses resources meant for environmental sustainability.

“There’s a perception that we are all very rich and well-to-do, but many of you in this chamber know that that is far from reality,” Mr Ayariga defended.

“We are proposing to design an MPs' pension scheme funded from revenues from carbon credit. If we establish the right infrastructure for a carbon credit market and ensure policies maximise Ghana’s gains from trading in carbon credits, some of those revenues can go into the pension fund for MPs.”

Former Minister of Works and Housing, Kojo Oppong Nkrumah, backed the idea of a pension scheme but suggested determining MPs’ pensions at the beginning of their term rather than at the end. He argued this would allow MPs to plan for their financial futures more effectively.

However, climate groups have slammed the proposal, warning it contradicts the core purpose of carbon trading, which is meant to support emissions reduction and sustainability projects.

Coordinator of Eco-Conscious Citizens, Awula Serwaa, expressed outrage.

“I thought this was a bad joke. This money should be used for environmental projects in communities devastated by climate change and illegal mining, not for MPs’ pensions.”

The Youth Climate Council Ghana (YCC), an umbrella body for climate-focused groups, is already mobilising opposition.

The group has launched a petition and is gathering signatures to pressure Parliament into reversing the decision.

“This is a complete misallocation of funds and a breach of trust regarding what climate finance should be used for,” said Rosemary Balami, Communications and Outreach Officer for YCC.

In a statement, YCC strongly condemned the move, insisting that diverting carbon finance to pensions violates international climate agreements, including Article 6 of the Paris Agreement, which mandates carbon markets to support greenhouse gas (GHG) reduction and sustainable development.

“This proposal directly undermines Ghana's climate commitments and constitutes a blatant misuse of climate finance intended for national sustainability efforts.

"Diverting these funds away from their intended purpose weakens Ghana’s ability to meet its emissions reduction targets,” the statement read.

YCC is calling on Parliament to explore alternative revenue sources, such as reviewing current mining leases to increase Ghana’s revenue share, with a fraction dedicated to MPs’ pensions instead.

The Green Tax Africa group has also rejected the proposal.

“We vehemently oppose the agenda before Parliament to set up a pension scheme funded through carbon credit revenue. Parliament must stay away from climate funds,” said Nii Addo, Executive Director of the group.

The groups warn that they will escalate their resistance if Parliament proceeds with the plan, vowing to take further action to protect Ghana’s climate finance from political appropriation.