Ghana’s financial sector is on the cusp of a climate finance revolution, with carbon markets emerging as a lucrative opportunity for banks to diversify their portfolios and support sustainable development. The country’s early establishment of a Carbon Market Office has positioned it as a credible supplier of high-integrity carbon credits in a tightening global market.
Carbon markets enable countries to trade emission reductions, with Article 6.2 facilitating bilateral trades through Internationally Transferred Mitigation Outcomes (ITMOs).
Ghana’s banks can capitalize on this by financing climate-smart agriculture, clean energy, and nature-based solutions, generating new revenue streams and de-risking portfolios.
The Carbon Market Office has authorized projects, including clean cooking initiatives and sustainable rice cultivation, expected to generate significant carbon credits.
Fidelity Bank Ghana is already offering sustainability services, supporting clients in navigating climate risk and carbon markets.
As the future of banking shifts towards managing carbon wisely, Ghana’s financial institutions are poised to play a pivotal role in the country’s sustainable development.
By: Justice Akoto, Sustainable Operations Advisor-Fidelity Bank
Source: www.climatewatchonline.com
