The World Bank’s Forest Carbon Partnership Facility (FCPF) paid Ghana more than $4.86 million for reducing 972,456 tons of carbon emissions for the first monitoring period under the programme (June to December 2019).
“This payment is the first of four under the country’s Emission Reductions Payment Agreement (ERPA) with the World Bank to demonstrate potential for leveraging results-based payments for carbon credits,” said Pierre Laporte, World Bank Country Director for Ghana, Liberia, and Sierra Leone.
“Subject to showing results from actions taken to reduce deforestation, Ghana is eligible to receive up to $50 million for 10 million tons of CO2 emissions reduced by the end of 2024,” he said.
These actions are within a six-million-hectare stretch of the West African Guinean Forest, where biodiversity and forests are under pressure from cocoa farming and unsustainable harvesting, and small-scale mining.
Ghana is one of 15 countries that have signed ERPAs with the World Bank.
“The years of dialogue, consultations, and negotiations with local communities, traditional authorities, government agencies, private sector, CSOs, and NGOs have paid off,” Mr Samuel Abu Jinapor, Minister of Lands and Natural Resources said.
“This emission reductions payment will further promote confidence in Ghana’s REDD+ process for action to reduce deforestation and forest degradation while empowering local community livelihoods.
The road to global 1.5 degrees cannot be achieved without healthy standing forests, and Ghana is committed to making it possible,” he added.
Ghana is the world’s second-largest cocoa producer. Cocoa drives the economy, but it is also one of the leading causes of deforestation and forest degradation in the southeast and western regions of the country.
Stakeholders are working to help some 140,000 Ghanaian farmers increase cocoa production using climate-smart agroforestry approaches, rather than slash-and-burn land-clearing techniques that decimate forests. More sustainable cocoa farming helps avoid the expansion of cocoa farms into forest lands and secures more predictable income streams for communities.
Ghana’s Cocoa Board is participating in the REDD+ process, as are some of the most important cocoa and chocolate companies in the world, including World Cocoa Foundation members like Mondelēz International, Olam, Touton, and others.
Their combined actions are not only helping bring change to the cocoa sector, but they are also helping Ghana meet its national emissions reduction commitments under the Paris Agreement.
This level of collaboration is also reflected in the benefit-sharing plan underpinning Ghana’s ERPA with the World Bank.
Prepared through extensive consultations with local stakeholders and civil society organizations throughout the country, the plan ensures all participating stakeholders are fairly recognized and rewarded for their role in reducing emissions.
The Forest Carbon Partnership Facility (FCPF) is a global partnership of governments, businesses, civil society, and Indigenous Peoples’ organizations focused on reducing emissions from deforestation and forest degradation, forest carbon stock conservation, the sustainable management of forests, and the enhancement of forest carbon stocks in developing countries, activities commonly referred to as REDD+.
Launched in 2008 the FCPF has worked with 47 developing countries across Africa, Asia, Latin America, and the Caribbean, along with 17 donors that have made contributions and commitments totalling $1.3 billion.