Climate finance stakeholders push for research-led financing 

Climate finance stakeholders have called for comprehensive research and wider consultation before reintroducing any tax mechanism to fund Ghana’s climate actions. 

At a stakeholder research dissemination conference on financing carbon emissions in Ghana, organised by the Environment for Development (EfD), participants highlighted the urgent need to support the country’s climate adaptation and mitigation efforts.  

The event was supported by the University of Ghana, Institute of Statistical, Social and Economic Research (ISSER), Environmental Protection Authority (EPA) and the Ghana Institute of Management and Public Administration (GIMPA). 

Stakeholders criticised the December 2024 approval of the Emissions Levy Act, 2023 (Act 1112), which imposed fees ranging from GH¢75 for motorised tricycles and motorcycles to GH¢300 for vehicles with a capacity of 3,000cc or higher.  

Ghana became the third African country to introduce a carbon tax after South Africa and Mauritius, but the levy was abolished in March 2025 following stakeholder opposition. 

Professor Anthony Amoah, Lead Researcher at EfD, told the Ghana News Agency that “how the carbon tax was introduced was problematic in terms of its broader consultation.”  

“The product that they were selling was not clear. What the revenue was going to be used for was not clear. The institutions responsible for working together to ensure collection and administration of the funds were not clear and didn’t present alternatives,” he said. 

Prof. Amoah, who is also Acting Dean of the School of Sustainable Development, University of Environment and Sustainable Development, said these issues contributed to the backlash and subsequent cancellation of the tax, urging government to ensure future climate financing schemes were research?driven from inception.  

“When we are looking at climate finance, we should start with a broader consultation and research should lead the whole process,” he said. 

Mr Darryl Bosu, Deputy National Director of A Rocha Ghana, said although Ghana contributed minimally to global emissions, it faced severe climate change impacts.  

He noted that challenges affected agriculture, infrastructure, roads, water systems and health, making adaptation financing critical. 

“If we look at the current scheme of things, the opportunity, the capacity we have, and even the responsibility on us as a country connected to a global interest on climate change issues, I don’t think we are at the point where we need to be imposing taxes directly on citizens yet,” he stated. 

Mr. Bosu urged the government to explore carefully structured and targeted tax initiatives rather than blanket flat rates.  

“If Ghana wants to look at really getting some finance through a form of a tax, then we need to structure it better, be more precise in who we target for what, and not set up a blanket flat rate for people who are not even necessarily responsible,” he said. 

Mr. Bosu said that many companies were already implementing projects and providing finance for climate adaptation and mitigation. 

He stressed the need for government to create enabling mechanisms and equitable operating spaces for businesses and individuals to engage in climate action rather than leading solely through taxation. 

Source: GNA 

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