Ghana’s economy is highly vulnerable to climate change and its resulting impacts on sustainable development and inclusive growth. In the past two decades, carbon emissions have doubled, leading to high levels of food insecurity and the prevalence of extreme weather events, such as flooding. As a result, approximately 10% of Ghana’s population currently experiences food insecurity, and urban areas are especially susceptible to flooding.
In response, the Ghanaian government is seeking to raise the necessary financing to implement 47 critical mitigation and adaptation measures required to meet the country’s commitments to the Paris Agreement and Sustainable Development Goal 13. However, the government’s current fiscal consolidation measures, combined with possible expenditure cuts that may result from an IMF program, could further exacerbate the already low levels of government spending on climate change mitigation and adaptation.
Additionally, limited access to finance, weak climate governance reforms, and low awareness of international climate finance opportunities for climate-smart enterprises continue to impede private sector investment in Ghana’s climate action. Therefore, a range of reforms is needed to close the existing climate finance gap in the country.
The Imani Centre for Policy and Education (IMANI) and the Africa Centre for Energy Policy (ACEP) has carefully analyzed both domestic and international climate finance landscapes to identify feasible pathways for securing climate finance amidst Ghana’s fiscal crisis. These findings were shared at a consultative dialogue held on 26th April, 2023 at the Tang Palace Hotel in Accra.
Find a summary of the findings below.