Climate change losses could cost Ghana 1.7% of GDP – Finance Minister
Mr Ken Ofori-Atta, Minister of Finance, says climate change losses, if unaddressed, could cost Ghana 1.7 per cent of Gross Domestic Product by 2030.
He made the revelation during the Mid-year budget review presented to parliament in accordance to the Public Financial Management Act.
According to the Africa Development Bank the African continent has seen a loss of 5 to 15 per cent in GDP per capita growth due to climate change.
The bank said the continent needs an estimated amount of $1.6 billion to meet its NDCs from 2022 to 2030.
It noted that the African countries are been shortchanged of a promised climate financing fund of $235 billion yet they received $29.5 billion between 2019 and 2020.
To address the challenge, the Minister of finance said the government is working to secure carbon financing to support its Nationally Determined Contributions (NDCs) in order to meet the commitment of the Paris Agreement.
According to the Minister, the NDCs could also drive foreign direct green investment to the benefit of local businesses.
Mr Ofori-Atta said due to the launch of the in-country process for Ghana’s participation in the Global Shield against Climate Risk; the damages of climate change could be addressed.
He said such initiatives would enable Ghana to assess quantitative data on climate risk, design solutions informed by the data and facilitate access to resources from international organizations.
Mr. Ofori-Atta also said government in partnership with the Green Climate Fund had established the Ghana Shea Landscape Emission Reduction Project (GSLERP) with an estimated cost of $54.5 million.
He said GSLERP would focus on Shea Landscape to address the country’s efforts to reduce emissions from deforestation and forest degradation (REDD+).
Additionally, he said the government was implementing the Ghana Cocoa Forest REDD+ Programme (GCFRP) which covers 5.9 million hectares (79 per cent off-reserve, 21 per cent on reserve) in seven regions.
The Minister praised Ghana’s effort to address Climate change, particularly when the President is the chair of the Vulnerable Forum while the Finance Minister chairs the V20 Group of Finance Ministers.
He said the government intended to convert the V20 into a permanent Inter-Governmental Organisation with the aim to champion, principally a ‘Fair Share’ Agenda to ensure appropriate financing for adaptation, mitigation, and loss and damage.
Mr. Ofori-Atta added the government would use the V20 to leverage the natural resources to raise carbon financing for climate action and to ensure that the 1.5-degree Celsius temperature threshold was not breached.
Source: GNA