Center for Economic Research and Policy Analysis calls for bold policy action to unlock carbon market potential

The Centre for Economic Research and Policy Analysis (CERPA) has released a new policy paper examining the emerging carbon market landscape in Ghana.

The paper outlines the opportunities and challenges facing the country’s carbon trading ambitions and provides strategic policy recommendations to position Ghana as a competitive player in the global carbon economy.

As nations work to meet climate goals under the Paris Agreement, carbon markets are gaining traction as powerful tools for emissions reduction and sustainable finance. Ghana has made early moves in this space, including participation in the World Bank’s Forest Carbon Partnership Facility and engagement with Article 6 of the Paris Agreement.

Yet, CERPA finds that the country’s progress remains fragmented and at risk of being undermined by regulatory uncertainty, capacity constraints, and institutional gaps.

Key Highlights from CERPA’s Analysis:

• Ghana is one of the first African countries to authorize the generation and transfer of mitigation outcomes under Article 6 of the Paris Agreement.
• The potential for voluntary and compliance carbon markets could attract climate finance, generate green jobs, and support local communities.
• However, overlapping mandates across government agencies, weak legal frameworks, and low public awareness could stall growth.
• CERPA also notes a lack of transparency in existing agreements and limited national capacity to monitor, verify, and enforce carbon-related commitments.
  

CERPA’s Policy Recommendations:

• Finalise and operationalise Ghana’s national carbon market framework, ensuring alignment with international standards and private sector participation.
• Clarify institutional mandates to reduce fragmentation and enhance coordination among regulatory agencies.
• Strengthen legal and regulatory frameworks with clear guidelines for benefit-sharing, safeguards, and dispute resolution.
• Invest in capacity-building for local verification bodies, registries, and enforcement mechanisms.
• Promote public awareness and stakeholder education on carbon market opportunities, rights, and risks.
• Leverage international climate finance to support readiness, innovation, and infrastructure development.
  

The policy paper emphasises that carbon markets can offer Ghana a new avenue for climate-smart development, but only with the right mix of strategy, safeguards, and governance. Without clear rules and capable institutions, Ghana risks losing credibility and missing out on billions in climate investment.