Gov’t unveils Green Finance Taxonomy to drive sustainable dev’t
The government has launched the first phase of Ghana’s Green Finance Taxonomy at the SDGs Investment Fair, marking a significant step towards sustainable economic growth.
This new framework aims to guide investments into environmentally friendly sectors and align the nation’s financial system with global sustainability trends.
Speaking virtually at the launch, Finance Minister Dr. Mohammed Amin Adam emphasized the initiative’s dual objectives, which is meant to reduce the country’s debt levels to sustainable levels while improving environmental management.
He acknowledged the complexities of transitioning from carbon-intensive activities to low-carbon alternatives, noting that this shift requires “some sacrifices” and “hard decisions.”
The Green Finance Taxonomy is being implemented using a phased approach, which should lead to developing a transitional taxonomy for specific high-carbon industries like oil, gas, and mining.
Dr. Adam stressed the importance of this approach, saying, “This helps us build our resilience and achieve future environmental stewardship, which are critical for delivering development without compromising our future environmental standards.”
Addressing the economic implications, the minister highlighted the significant role of high-carbon industries in Ghana’s economy.
“They generate growth and revenue for the economy,” he said. “Transitioning swiftly away from these activities will certainly negatively affect the economy.”
To mitigate potential disruptions, the government plans to develop a transitional taxonomy, guiding a gradual shift from high-carbon to low-carbon activities.
Dr. Adam emphasized the need to balance environmental goals with economic stability.
“We should do it in such a way that the economy is not negatively affected,” he cautioned. “Rather, the transition must provide opportunities for harnessing the potential associated with low-carbon economies and create green jobs.”
The Ghana Green Finance Taxonomy aligns with the United Nations Sustainable Development Goals (SDGs), with Dr. Adam noting the approaching 2030 deadline.
“The taxonomy will help accelerate the implementation of the SDGs towards achieving sustainable outcomes in green energy, forestry management, and water management,” he explained.
By aligning the taxonomy with sustainable development standards, Ghana is expressing its commitment to achieving a greener economy and transitioning its energy systems towards low-carbon alternatives.
The minister also expressed support for the global SDG stimulus, which aims to direct resources towards projects that positively impact the SDGs.
This initiative is expected to play a crucial role in attracting green investments, creating jobs, and fostering economic growth while prioritizing environmental sustainability.