H.E. JOHN DRAMANI MAHAMA
OFFICE OF THE PRESIDENT OF THE REPUBLIC OF GHANA
JUBILEE HOUSE
ACCRA
Your Excellency,
PROPOSAL FOR ENGAGEMENT WITH THE E.U. AND THE U.A.E. ON BILATERAL AGREEMENTS IN PURSUIT OF THE PARIS AGREEMENT AND THE ENHANCEMENT OF THE CARBON MARKET
I write to respectfully submit for your kind consideration a proposal to advance Ghana’s climate mitigation and adaptation objectives under the Paris Agreement, through strategic engagement with development partners in the emerging global carbon credit market.
Background
The Paris Agreement, adopted at COP21 and effective since 2016, has served as a unifying global framework to combat climate change and reduce greenhouse gas emissions. Central to its implementation are nationally determined contributions (NDCs), which outline each country’s mitigation and adaptation strategies. Ghana, like many others, has committed to these goals through well-defined programs.
In 2021, Ghana updated its NDCs under the leadership of the Ministry of Environment, Science, Technology and Innovation (MESTI), signalling increased ambition and urgency in addressing climate risks. The emergence of voluntary and compliance carbon markets has since opened a compelling opportunity: the ability to generate and trade verified emission reductions to support the achievement of both our national and global climate targets.
Current Context
Carbon markets offer a transformative pathway for countries like Ghana to finance climate-smart development. By selling high-quality carbon credits — particularly from nature-based solutions — Ghana can unlock significant revenue streams to support its Sustainable Development Goals (SDGs) and invest directly in rural, farming communities.
The Climate Market Office has projected that Ghana could generate up to $1 billion USD in revenue through active participation in carbon trading. Achieving this potential, however, will require Ghana to proactively pursue bilateral agreements with high-demand carbon credit buyers, notably the European Union (EU) and the United Arab Emirates (UAE).
The EU has committed to reducing greenhouse gas emissions by 90% by 2040, with a provision for up to 3% of these reductions to be achieved through the purchase of international credits from developing countries starting in 2036. Similarly, Gulf nations, including the UAE and Saudi Arabia, are investing billions of dollars into voluntary carbon markets. The Saudi-backed NEOM initiative alone is coordinating the purchase of over 30 million tons of carbon credits through the Regional Voluntary Carbon Market Company.
Proposal Objective
This proposal aims to initiate bilateral engagements with countries like the UAE and EU to:
- Establish formal carbon market partnerships under Article 6 of the Paris Agreement;
- Facilitate direct trade of carbon credits between Ghanaian entities and sovereign buyers;
- Generate significant climate finance to fund sustainable agriculture, biodiversity protection, and rural development;
- Enable the growth of credible local carbon project developers — including emerging Ghanaian companies like Sikafields Technologies, which is already working with smallholder farmers to develop high-integrity, nature-based carbon projects.
Justification
The EU’s Emissions Trading System (ETS) and the Gulf’s regional voluntary carbon platforms provide a ready and credible demand base. Engaging through bilateral agreements will:
- Enhance Ghana’s access to premium carbon markets,
- Ensure Ghanaian public and private institutions benefit from global climate finance flows;
- Strengthen our implementation of REDD+, GCFRP, and other strategic climate initiatives;
- Promote climate-smart agriculture beyond cocoa — expanding to crops like oil palm, which also offer carbon sequestration benefits and rural economic transformation.
These agreements will align with Ghana’s NDC implementation timeline and create institutional frameworks to maximise participation by local actors.
Conclusion
Your Excellency, I submit this proposal for your kind consideration and possible adoption as part of Ghana’s forward-looking climate strategy. The time is now for Ghana to assert its leadership in Africa’s carbon economy — not only as a participant but as a strategic architect of market-based climate solutions that uplift our people and restore our land.
Kindly accept, Your Excellency, the assurances of my highest consideration.
Yours faithfully,
FRANK ANNOH-DOMPREH
MINORITY CHIEF WHIP
PARLIAMENT OF GHANA