Ghana poised to issue first transfer of emission savings
Ghana is poised to issue its first transfer of Internationally Transferred Mitigation Outcomes (ITMOs), a type of carbon credit representing verified emission savings.
The initiative is expected to take place in the last quarter of 2024 or the first quarter of 2025.
Madam Ophelia Mensah-Hayford, the Minister of Environment, Science, Technology, and Innovation, disclosed this during an event in Accra focused on solutions to reduce carbon dioxide emissions under Article 6 of the Paris Agreement.
The event, organized by the Klik Foundation and the Carbon Market Office of the Environmental Protection Agency, drew stakeholders from the carbon market project value chain to exchange ideas and insights within the sector.
The ITMOs will be generated from an improved charcoal cookstove project developed by ACT Commodities and Envirofit, as part of a cooperative agreement between Ghana and Switzerland signed in 2020.
The improved biomass cookstoves, totaling 180,000, would be sold at a below-cost price subsidized by carbon funds to smallholder farmers in rural and peri-urban areas.
The initiative aims to reduce smoke and toxic emissions in individual households by 80 per cent and reduce cooking fuel costs by 60 per cent.
The Klik Foundation will be the recipient of the ITMOs.
Madam Mensah-Hayford stated that beyond the emission reduction objective of the agreement, the country aimed to create more green jobs, contribute to the transfer of technology, and incentivize the private sector to contribute to the outcomes of the nationally determined contributions.
“It’s my understanding that the engagement with Klik has contributed to development of various projects ranging from sustainable cooking, electric mobility solar PV, waste-to-compost, sustainable rice cultivation,” she said.
The Minister noted that by December 2023, six projects under the framework had secured investment decisions totaling over $850 million, which included government fees, service fees, and direct investments.
Madam Simone Giger, Switzerland’s Ambassador to Ghana, said that Ghana boasts the largest pipeline of projects among all of Switzerland’s bilateral partner countries.
She commended the Ghana Carbon Market Office for its efforts, attributing the country’s leading position to the collaborative work of various institutions and local partner organizations.
The Ambassador emphasised that the agreement between Ghana and the Swiss government, along with the established framework, had provided a clear pathway and investment security for their cooperation.
“It has attracted interest and investments from the private sector locally and internationally. Ghana has really made a name for itself as a pioneer worldwide in carbon offsetting under Article 6 and it has been able to draw significant positive international attention to its efforts,” she said.
Mr. Yannick Träris-Kahriman, Director of Carbon Procurement at Klik Foundation, expressed enthusiasm about the projects developed under the Ghana-Swiss agreement.
“For the last two and a half years this is my fourth time visiting Accra and I am happy we are showcasing tangibles. This was a very technical process, we were struggling to break it down in a way that the private sector in Ghana could engage in projects,” he said.
Mr. Träris-Kahriman noted that the political will demonstrated by both Ghanaian and Swiss partners had expedited various processes, leading to significant advancements in project development and implementation.
Ghana is actively working to harness the potential of the carbon market by aiming to create demand for 24 million tonnes of carbon as part of its climate mitigation strategies.
Since 2020, the country has entered into cooperative agreements with Switzerland, Sweden, Singapore, and South Korea to mobilize sustainable financing for its Nationally Determined Contribution (NDC) programmes.
Source: GNA