Ghana has taken a major step towards addressing climate change and boosting sustainable development with the inauguration of the Climate Financing Division under the Ministry of Finance.
This new division, which aims to streamline and enhance the country’s access to climate finance, was officially launched by the Minister for Finance, Dr. Mohammed Amin Adam, at a ceremony in Accra.
In his keynote address, Dr. Adam emphasized the growing importance of climate finance in global economic management, citing recent climate disasters such as hurricanes in Florida and China, and the food insecurity crisis in Eastern Africa as reminders of the critical link between the environment and economic stability.
"The reality is that green and climate finance is the finance of the future," Dr. Adam noted.
"Our establishment of the Climate Financing Division signals our preparedness to adapt to the changing global finance landscape and secure the necessary funding to drive climate-resilient growth."
The Minister highlighted the devastating impacts of climate change in Ghana, including the Akosombo Dam spillage in 2023 and dry spells affecting the Northern and Middle Belt regions.
In response, the Ministry of Finance mobilized GHC 2 billion, including GHC 500 million from the Contingency Fund, to address the crises.
Dr. Adam stressed the growing demand for climate-related funding, with Ghana's Nationally Determined Contributions (NDCs) requiring an estimated $9.3 to $15.5 billion over the next decade.
He pointed to the global rise in green bonds, which raised $351 billion in 2022, as a clear indication of the financing opportunities available for countries that are prepared to act.
The Climate Financing Division, formed from the existing Natural, Resource Environment and Climate Change Unit, will serve as a central hub to attract international funding, forge partnerships with private sector investors, and implement green projects that promote sustainable development.
Dr. Adam expressed gratitude to President Akufo-Addo, former Finance Minister Ken Ofori-Atta, and other stakeholders for their roles in establishing the division.
He also urged the division’s team to play a pivotal role in Ghana’s quest for climate resilience.
“As we embark on this new journey, let us renew our commitment to climate action and sustainable development. Together, we can ensure that Ghana emerges as a leader in climate financing and a champion of a sustainable future,” Dr. Adam concluded.
The establishment of the Climate Financing Division is seen as a critical move in positioning Ghana as a key player in the global climate finance arena, helping the country mitigate the effects of climate change while fostering long-term economic prosperity.
Eva Esselba Mends, the Chief Director of the Ministry of Finance, on her part, emphasized that the inauguration marks the realization of a long-held vision to reposition the Ministry in the climate finance space.
This step is part of a broader strategy to respond to the evolving global financing landscape and the growing opportunities within climate finance.
“Today represents the culmination of a vision—a vision to reposition our Ministry to respond to opportunities in climate finance to better serve our mandate of strategically mobilizing and allocating resources,” said Madam Mends.
She highlighted the Ministry’s history of adapting to changing financial landscapes, referencing several reforms over the years.
These include the restructuring of various divisions to improve resource mobilization, transparency in revenue reporting, and engagement with external partners.
Madam Mends also noted the Ministry's efforts in managing State-Owned Enterprises (SOEs) through the Public Investment and Asset Division, which has improved oversight and private sector collaboration under the Public-Private Partnership (PPP) framework.
Ms. Mends praised the leadership of Finance Minister Dr. Mohammed Amin Adam for his consistent advocacy for climate financing at both national and global levels.
She expressed confidence that the new Climate Financing Division will serve as a practical tool to drive positive change and facilitate green growth, in line with the government's goals.
“This division will not only be a symbol of our commitment to building a climate-resilient economy but also a practical instrument to drive positive change and facilitate green growth,” she stated.
The division is expected to serve as a hub for collaboration with other divisions within the Ministry, as well as with various government agencies and international partners, to maximize resource mobilization and promote climate action across the country.
The launch of the Climate Financing Division signals Ghana’s commitment to aligning its financial strategies with sustainable development goals, ensuring that the country remains at the forefront of climate finance in the region.
“With the combined efforts of the Ministry of Finance, our partners, and stakeholders, we can create a future where climate finance and sustainable development are complementary in our national development aspirations,”
Well-wishers and stakeholders who spoke at the launch expressed confidence that the division will be a game-changer, positioning Ghana to better access global climate finance and drive sustainable development.
The division, which aims to streamline resource mobilization for green growth, was praised for its potential to catalyze climate resilience projects and foster collaboration with international partners.
Speakers commended the Ministry of Finance for its foresight and leadership in establishing the division, predicting it will become a success story in the country’s economic and environmental landscape.
The launch signifies Ghana’s strengthened commitment to addressing climate change while driving economic prosperity through sustainable financing.
Story by: Joshua Kwabena Smith
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