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Ghana is Working on Legislation to Regulate the Production of Carbon Credits in the Country

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. 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.

BUSINESS  INSIDER