This decision trails efforts made by other African nations, including Zimbabwe and Kenya, to enact legislation aimed at ensuring that the government and local communities receive a greater share of benefits from offset production.
Carbon credits have become a big industry, with wealthier nations offsetting their emissions by either financing clean and sustainable energy projects or compensating developing economies for conserving their natural environments.
The African Union, in a declaration at the inaugural Africa Climate Summit, committed to implementing a mix of measures that elevate Africa’s share of carbon markets.
“We need a proper framework, legislation policy to regulate the carbon market of Ghana,” Jinapor said in an interview in Nairobi, Kenya’s capital, on the sidelines of the summit. “We are in the process of doing so.”
Africa is struggling to fully benefit from the global carbon credit system. Carbon credit prices have been historically lower on the continent than in many other parts of the world where schemes are more strictly regulated.
Africa’s market currently sees the continent earning less than $10 per ton of carbon. Other regions can secure over $100 for the same amount in some instances.
This makes it challenging for climate projects to secure adequate financing on the continent.
At the U.N. COP27 climate summit last year, an African Carbon Market Initiative (ACMI), comprised of several nations, including Kenya, Malawi, Gabon, Nigeria and Togo, was launched to increase the number of carbon credits generated on the continent to around 300 million credits by 2030 and 1.5 billion a year by 2050.
This, the ACMI said could unlock $6 billion in revenue by 2030 and $120 billion by 2050.