Climate finance is a hot topic in Ghana right now. Stakeholders are asking for thorough research and broader talks before any new taxes are introduced to fund climate efforts. At a recent conference hosted by Environment for Development (EfD), experts highlighted the pressing need for effective climate adaptation and mitigation strategies.
Ghana, the third African nation to adopt a carbon tax after South Africa and Mauritius, faced backlash after the December 2024 approval of the Emissions Levy Act, 2023, which imposed fees from GH¢75 for motorcycles to GH¢300 for larger vehicles. However, this levy was canceled in March 2025 due to strong opposition.
Professor Anthony Amoah, Lead Researcher at EfD, pointed out the flaws in how the carbon tax was presented. He noted, “The product that they were selling was not clear,” emphasizing the need for better communication about how the collected revenue would be used and which institutions would handle it. Amoah advocates that future initiatives should prioritize research and stakeholder involvement right from the start.
Mr. Darryl Bosu, Deputy National Director of A Rocha Ghana, echoed these sentiments. He highlighted that although Ghana contributes little to global emissions, it faces severe impacts from climate change affecting agriculture, infrastructure, and public health. Bosu argued for a careful approach to taxation, stating, “We need to structure it better and not impose flat rates on those who aren’t really responsible for emissions.”
Interestingly, a study published by the World Bank in 2024 found that areas most affected by climate change in Ghana—such as Northern regions—often lack adequate resources for adaptation. This gap points to the pressing need for thoughtful financing solutions rather than heavy-handed tax measures.
Recent social media discussions indicate a strong public sentiment for collaboration between the government and private sector. Many companies are already making strides in climate action. The key now is for the government to create supportive frameworks that enable both businesses and individuals to participate in these efforts without just relying on taxation.
Getting climate finance right is crucial for Ghana’s future. The focus should be on transparent, well-structured initiatives that engage all stakeholders, ensuring everyone has a role in combating climate change.
For deeper insights, check out the World Bank’s report on climate adaptation in Ghana.
