Ghana needs to raise $12.5 billion to effectively implement its climate change adaptation action plans.
Per the country’s Nationally Determined Contributions (NDCs), $4.2 billion, representing 34 percent, needs to be raised at the national level while $8.29 billion, or 66 percent has to be raised from international sources.
The NDCs are countries’ self-defined national climate pledges under the Paris Agreement of the United Nations Framework Convention on Climate Change (UNFCCC), detailing what they will do to help meet the goal of limiting global warming to 1.5 degrees Celsius, as well as adapt to climate impacts and ensure sufficient finance to support these efforts.
The Minister of Finance, Ken Ofori-Atta, stated these during the first workshop on the Global Shield against Climate Risks and Global Risk Modelling Alliance on 6th July 2023, in Accra.
He said given the cost, it was critical to have an innovative climate financing mechanism that would help implement the adaptation plan within the stipulated time.
Key actors dialogue
The workshop was aimed at engaging key actors on climate change issues in the country through a multi-stakeholder process to inform them about the Global Shield (GS) initiative and the Global Risk Modelling Alliance (GRMA), their objectives, and the support available to the country.
Launched at the Conference of the Parties (COP27) by the Vulnerable Twenty (V20) Group and the Group of Seven (G7), the GS against Climate Risks is aimed at increasing protection for climate-vulnerable economies and communities by providing and facilitating substantially more and better pre-arranged and trigger-based finance against disasters and climate risks.
The GRMA, on the other hand, emanated from a strategic agreement between the V20 Group of Ministers of Finance and the cross-sector Insurance Development Forum (IDF).
Mr Ofori-Atta said Africa had over the last two decades, lost over $200 billion due to climate change issues, emphasising that to build a climate-resilient economy and transition to a low-carbon development pathway, it was imperative that informed decisions were made based on reliable data at both the national and subnational levels.
“Data-driven decision-making will enable us to prioritize interventions, mobilize financial resources, and implement timely solutions to manage climate risks,” he explained.
Initiative
The Finance Minister also said by joining the GS and GRMA, Ghana was embracing an opportunity to enhance its understanding of climate risks, assess the country’s vulnerabilities and gain access to essential data and expertise for informed decision-making.
Mr. Ofori-Atta observed that signing up for the GS and the GRMA demonstrated a proactive step towards safeguarding the nation’s environment, economy, and well-being of the people.
“This initiative offers us the chance to strengthen our adaptive capacity, enhance resilience and forge a sustainable future for generations to come,” the minister pointed out.
On the financial front, the minister suggested that it was necessary to establish mechanisms that would provide pre-arranged and trigger-based financing.
That, he said, meant having financial instruments in place that could be activated swiftly in response to climate-related emergencies.
Mr. Ofori-Atta further stressed the need for social protection programmes to be designed and strengthened to assist those most affected by climate change, including vulnerable communities, smallholder farmers, and informal sector workers who may bear the brunt of climate impacts.
Climate financing, threat
The Minister of Environment, Science, Technology, and Innovation, Dr. Kwaku Afriyie, said evidence-based analysis and results should help the nation to design people-centered new investments towards a low-carbon transition status.
He said the Delivery Plan Progress Report released by Canada and Germany exposed the disparities in developed countries’ climate finance efforts.
He stressed that developed countries were still failing to meet their commitment to mobilize $100 billion in climate finance annually for developing countries, a pledge made over a decade ago and was meant to be fulfilled by 2020.
“Developed countries need to step up, stop dodging scrutiny, and work to rebuild trust with developing countries, delivering on their climate finance commitment,” Dr Afriyie suggested.
He further explained, for instance, that the country would not be able to reduce its emission rate by 64 million tonnes or to build resilience in priority sectors, including water, agriculture, and restoration of its biodiversity and health if the nation did not receive the needed resources.
Support
The German Ambassador to Ghana, Daniel Krull; the Development Director, British High Commission in Ghana, Beth Cadman, and the Head of Cooperation European Union Delegation to Ghana, Massimo Mina, all pledged their commitment towards the country’s efforts to implement its climate change plans.