The General Manager of the Jospong Green Transition Office, Ing. Dr. Glenn Kwabena Gyimah, has emphasized the need for Ghana to quicken the establishment of a carbon pricing policy to ensure fair pricing in the carbon market.
Speaking at the 30th Conference of the Parties, (COP 30) in Belém-Brazil, Dr. Gyimah stated that, "Fair pricing is the way to go, but it all must start from the government policy in coming out with the carbon pricing scheme, which is very critical to drive home the carbon price and protect green businesses"
According to Dr. Gyimah, the lack of a carbon pricing policy in Ghana creates uncertainty for project developers, making it challenging to determine the price of carbon. He explained, "If the country happens to have a policy on carbon price, then for sure it gives a lot of confidence on the pricing. Because the moment there is a price scheme by the government, then everybody would need to comply with it."
To be sure, Fair pricing in climate change refers to the equitable distribution of costs and benefits associated with climate change mitigation and adaptation. It involves a system where the costs of carbon emissions are recognized and compensated, ensuring that those who suffer the most from climate change are compensated for their losses. This approach is often referred to as F.A.I.R.—Foreseeable, Automatic, Immediate, and Regular.
Dr. Gyimah noted that Ghanaian project developers currently base their carbon pricing on the sustainability factor of the project, using sensitivity analysis to determine the maximum and minimum prices. However, he stressed that government policies are necessary to support the growth of the carbon market.
We don't have the carbon taxation as one of the carbon pricing schemes, and so that's why I'm saying that our space now in Ghana as a private player, we play the carbon pricing between the lowest and then the maximum kind of pricing that can make the project sustainable," Dr. Gyimah said.
When asked if Ghana is likely to introduce a carbon tax regime, Dr. Gyimah replied, "I think we are not far from there. The truth is that we keep generating emissions... At a point in time, government will have to come to a point where the system can support it."
Dr. Gyimah concluded that it is too early to conclude whether the carbon pricing is sustainable for current projects, but he is optimistic about the future. "I will leave that to maybe the future, where we've been able to test it over time and then have enough data to be very sure of the outcome, whether it has been sustainable or not."
Source: Kofi Ahovi, courtesy Jospong Group
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