December 14, 2023 [BFT Online]- The Ghana Stock Exchange (GSE) is set to collaborate with key stakeholders in the development of climate financing and carbon trading mechanisms in a bid to mobilise capital for the nation’s energy transition goals, said GSE’s Managing Director Abena Amoah.
Despite notable achievements following introduction of the Ghana National Energy Transition Framework – aimed at decarbonising the energy sector and achieving net-zero emissions by 2070 – substantial efforts are still required, particularly in domestic financing. The framework estimates a funding requirement of US$562billion for full implementation.
“The GSE seeks to partner the Ghana Carbon Market Office of EPA and all capital market stakeholders, to thoughtfully develop climate finance and carbon trading vehicles that mobilise domestic capital and crowd-in regional and international capital to finance our just transition targets,” Ms. Amoah said during the inaugural ‘Ring the Bell for Climate’ event.
The GSE has already taken steps to promote sustainable financing by introducing a Sustainable Bond Market Segment on its fixed income market. This segment allows issuers to list green and other sustainable bonds to fund projects generating climate or environmental benefits.
Additionally, the GSE has collaborated with member exchanges to endorse the WFE Green Equity Principles, fostering a global framework for ‘green’ offerings of listed equities. The exchange also advocates for increased local ownership in Ghana’s green earth minerals, leading to the listing of Atlantic Lithium on the GSE.
COP 28 Tango
The event was spearheaded by the World Federation of Exchanges (WFE), which the GSE is a member of, coincided with this year’s United Nation’s Conference of Parties (COP28) that recently concluded in Dubai, United Arab Emirates.
The event presented conflicting views, as the host and various stakeholders seemed to dampen enthusiasm for achieving net-zero goals. Instead, they supported a reduction in fossil fuel usage without advocating for a complete phase-out.
Concerns arose when it was revealed that COP28 President Sultan al-Jaber had asserted in November that there is no scientific basis for phasing-out fossil fuels. Some accused him of undermining the Conference’s overarching objective.
Sultan Al-Jaber reportedly argued that a complete fossil fuel phase-out would hinder sustainable development, suggesting it could regress the world to primitive conditions.
This elicited a stern rebuke from prominent net zero campaigners, including former US Vice President Al Gore.
In a historic move, however, COP28 concluded with a consensus to shift away from fossil fuels. The final text – agreed upon on December 13 – calls for all countries to move away from fossil fuel usage without explicitly endorsing a complete phase-out, aligning with the UAE Consensus.
The text acknowledges a need for substantial reductions to limit temperature rises to 1.5°C and marks an unprecedented commitment to transitioning away from all fossil fuels, potentially reshaping global economies.
While the agreement allows for responsible fossil fuel exploration, it lacks clear directions on climate finance. Advocates emphasise the importance of climate finance from developed countries to strengthen the final text – given that developing nations like Ghana rely on such support to address climate challenges and reduce reliance on fossil fuels.
These developed countries are responsible for a significant share of global carbon emissions and bear a greater historical responsibility for the current climate crisis compared to Africa, which contributes a mere three percent and is largely non-industrialised.
Tensions persisted as the Organisation of the Petroleum Exporting Countries (OPEC) has urged members to reject any deal targetting fossil fuels.
Pro Trial: Access 12,600 Tank Terminal and Production Facilities
12,600 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data
