Ghana and India Join Forces to Tackle Climate Change with $1 Billion Carbon Credit Deal

A landmark partnership to generate revenue and reduce emissions

by Motoni Olodun

Ghana and India have announced a landmark partnership to develop carbon offset projects in the West African nation that could generate up to $1 billion in revenue. The deal, signed on Tuesday in Accra, is the first of its kind in the region and aims to create over 1,000 jobs by 2030.

The agreement was reached between the Jospong Group of Companies (JGC), a diversified Ghanaian conglomerate, and EKI Energy Services Ltd. (EKI), a leading Indian carbon credit developer and supplier. Under the terms of the memorandum of understanding (MoU), EKI will provide JGC with technical assistance and expertise to implement carbon reduction initiatives across various sectors, such as waste management, renewable energy, and forestry.

The partnership will leverage the global carbon market, which allows countries and companies to trade emissions reductions to meet their climate goals. By developing carbon offset projects, Ghana and India hope to benefit from the growing demand for carbon credits, especially from developed countries that need to offset their emissions.

According to the joint statement, the collaboration is expected to mobilize $1 billion in carbon finance over the next five years, with a potential to scale up to $5 billion in the long term. The revenue will be shared between the two partners and invested in Ghana’s social and economic development.

The deal is also aligned with Ghana’s national climate action plan, which aims to reduce greenhouse gas emissions by 15% by 2030 and achieve carbon neutrality by 2050. Ghana is one of the signatories of the Paris Agreement, a global pact to limit global warming to well below 2 degrees Celsius above pre-industrial levels.

The MoU was witnessed by Dr. Henry Kokofu, the executive director of the Environmental Protection Agency (EPA) of Ghana, who hailed the partnership as a significant milestone that will position Ghana as a leader in the climate change arena. He also praised JGC and its chairman, Dr. Joseph Siaw Agyepong, for taking the initiative to invest in the carbon market and leverage the opportunities it offers.

EKI’s CEO, Mr. Manish Dabkara, expressed his confidence in the partnership and assured his strong support in attracting carbon investments for JGC. He said that EKI has over 15 years of experience in the carbon sector and has supplied over 200 million offsets to the international market. He also said that EKI is committed to sharing its knowledge and best practices with JGC and other stakeholders in Ghana.

Dr. Agyepong, the chairman of JGC, highlighted the collaborative focus on technical, financial, and developmental aspects. He said that the partnership will not only generate income for both parties, but also create employment opportunities, enhance environmental protection, and improve the quality of life for the Ghanaian people. He also announced the provision of scholarships for 10 individuals interested in pursuing studies on climate change this year.

The partnership between Ghana and India is a testament to the strong bilateral relations between the two countries, which have been growing steadily in recent years. The two countries have cooperated in various fields, such as trade, investment, education, health, and agriculture. The carbon deal is expected to further strengthen the ties and foster mutual benefits for both nations.

The partnership also reflects the global trend of increasing collaboration and innovation in the fight against climate change. As the world faces the unprecedented challenges posed by the climate crisis, more countries and companies are joining forces to find solutions and seize opportunities. By harnessing the power of the carbon market, Ghana and India are showing the way forward for a greener and more prosperous future.

Source: CNBC TV18

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