President Akufo-Addo has disclosed that Ghana has mobilised $800 million through carbon credit trading with other countries in a move to reduce global carbon emissions.

Speaking at the opening of the 29th Conference of Parties (COP29) in Baku, Azerbaijan, the president indicated that the country traded with foreign countries including Sweden and Switzerland through the carbon markets.

“Through article 6 of the Paris Agreement, Ghana has mobilised $800 million by trading carbon credits with nations like Switzerland and Sweden,” President Akufo-Addo said as he delivered his last speech at the conference.

Carbon credits are incentives paid by companies or individuals to entities that remove or reduce greenhouse gas emissions. The monies are to compensate for the gases emitted by the companies.

In 2023, Ghana began receiving payments from the World Bank for reducing emissions from deforestation and forest degradation, known as the REDD+.

At COP28, the country signed a $50 million emission reduction payment agreement with the Emergent Forest Finance Accelerator Incorporated, a US-based non-profit organisation, under the Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition.

Ghana’s commitment to Climate Action

Ghana has set a target of reducing its carbon emission by 64 million metric tonnes of carbon dioxide equivalent (MtCO2e) by 2030.

Committing to this climate promise, the president indicated that Ghana adopted 13 mitigating actions which have cut down its annual greenhouse gas emissions by 43% since 2021. 

“Despite financial and technical hurdles, we determined to reach the Paris Agreement goals across agriculture, forestry, energy and other sectors,” he added. 

A call for a sustainable future

World leaders have met in the Eastern European country in a drive for climate action.

This year’s conference is focusing on climate financing to aid developing countries overcome the vagaries of the negative impacts of climate change.

President Akufo-Addo highlighted the impacts of the changing climate as he impressed upon the need to take decisive measures to safeguard the environment.

“Climate change is real and immediately affecting our farmers, coastlines and communities. I question what world will we leave behind. Our children’s future hinges on our decisions,” the President said.

Concluding his speech at the conference, President Akufo-Addo charged other world leaders not to renege on their promises to provide financing for sustainable development on the African continent which contributes less to global emission but is adversely impacted by climate change.

“We call on our global partners to honour their commitments ensuring accessible concessional financing for sustainable development in Africa without unsustainable debts,” he said.