Ghana is taking a significant step in the international carbon market, with plans to sell over a third of its carbon credits under Article 6 of the Paris Agreement. President John Mahama announced that 5.2 million tonnes of CO2 (tCO2) equivalent have already been authorised for trade, reinforcing the country’s commitment to emissions mitigation.
Aerial view of reforestation efforts in Ghana. AI generated picture.
Addressing parliament in his first State of the Union speech, Mahama emphasised the urgency of tackling environmental challenges. ‘To meet our climate mitigation targets, Ghana has allocated 24 million tCO2 of its carbon budget—totalling 64 million tCO2—for authorisation under Article 6 of the Paris Agreement’, he stated. He further confirmed that three projects have already been approved to generate the initial 5.2 million tCO2 for trade.
The approved projects focus on sustainable rice cultivation, waste-to-compost initiatives, and the deployment of transformative cookstoves. These projects have likely received Letters of Authorisation (LoAs), a critical step for ensuring the credits can be sold as Internationally Transferable Mitigation Outcomes (ITMOs) under Article 6.2. While LoAs signal governmental endorsement, they do not guarantee final approval, as corresponding adjustments must be made to prevent double counting of credits.
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Ghana has positioned itself as a frontrunner in the African carbon market by developing frameworks that align with international trading standards. The country has already signed cooperation agreements with Switzerland, Sweden, and Singapore, further strengthening its role in cross-border carbon trading.
‘We are committed to strengthening institutional and human capacity through necessary adaptation and mitigation measures to bolster resilience in critical sectors such as agriculture, forestry, energy, and water resources’, Mahama stated, highlighting Ghana’s broader strategy for sustainable development.
With these authorisations in place, Ghana is not only advancing its environmental goals but also opening new opportunities for investment in carbon markets. The move signals growing engagement from African economies in global emissions trading, setting a precedent for other nations looking to capitalise on carbon credit mechanisms under the Paris Agreement.
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As carbon markets gain momentum, Ghana’s proactive stance highlights the increasing demand for transparent, high-quality carbon credits. At DGB Group, we’re leading this shift with large-scale nature-based projects that not only generate verifiable carbon units but also restore ecosystems, enhance biodiversity, and create lasting benefits for local communities. For businesses looking to align with global environmental frameworks and unlock new opportunities in the carbon economy, our solutions offer both impact and value. Discover how DGB can strengthen your sustainability strategy today.
