Ghana’s carbon market is projected to attract over $1 billion in investments by 2030, driving job creation and advancing clean energy solutions, according to a report by the Carbon Market Office (CMO).

Minister for Environment, Science, Technology, and Innovation, Dr. Ibrahim Murtala Muhammed, highlighted key measures outlined in the report to achieve this target.

“Unlocking about $1.1 billion in financial flows by 2030. Twelve projects being developed by Klik Foundation under the Ghana-Switzerland agreement have reached investment decision points. The projects are set to leverage up to approximately $1.1 billion from direct investment, carbon revenues, and fees by 2030.

“These 12 projects are expected to create a minimum of 5,000 green jobs, save eight million tonnes of greenhouse gas emissions, and increase access to clean cooking, renewable energy, electric mobility, and green cooling,” he stated.

Ghana is set to attract significant investments through its carbon trading initiatives, leveraging funds from greenhouse gas reduction projects and revenue from associated fees.

Carbon trading enables countries and businesses to buy and sell carbon credits—permits representing the reduction or removal of greenhouse gases such as carbon dioxide. One carbon credit is equivalent to cutting, capturing, or preventing one tonne of carbon dioxide emissions.

This system provides Ghana with an opportunity to secure funding for eco-friendly projects while working towards emission reduction goals.

To maximize gains from carbon trading, Ghana has established policies and regulations. Out of the country’s total 64 million metric tonnes of carbon credits, 24 million metric tonnes have been made available for sale under Article 6.2 of the Paris Agreement.

According to the Carbon Market Office, 70 projects had been submitted for approval as of December 2024. These initiatives aim to lower emissions while promoting sustainable development.

Among the proposals, the clean cookstove project stands out, aiming to distribute 9.1 million stoves by 2030. This initiative dominates the pipeline, accounting for 26 of the submitted projects.

Other proposals include three electric mobility projects targeting the rollout of 120,160 e-bikes and electric vehicles. Additionally, 15 projects focus on nature-based solutions, while others span biochar production, solar energy generation, wastewater treatment, and electronic vehicle development.

Ghana has already signed agreements with Switzerland, Sweden, and Singapore to sell carbon credits, with the Swiss partnership currently being executed. Discussions are also ongoing with South Korea and Liechtenstein to expand participation in the market.

The report highlights that the carbon market will attract more investors, generate employment, and support Ghana’s climate action efforts. It also aims to encourage businesses and individuals to embrace cleaner technologies such as improved cookstoves and electric mobility solutions.

With strong policies and investor backing, Ghana is positioning itself as a leader in Africa’s carbon trading landscape.

A recent status report on the implementation of Article 6 of the Paris Agreement recognized Ghana among the nations making significant progress in carbon trading.

“Parties that have advanced the most include those that have launched projects and met existing reporting requirements, including Ghana, Guyana, Suriname, Switzerland, Thailand, and Vanuatu,” the report noted.