Ghana and Singapore associate to make use of blockchain know-how to facilitate the buying and selling of carbon credit.
Cementing Ghana’s Place as Africa’s Carbon Market Chief
Ghana’s Environmental Safety Company (EPA) has entered into an settlement so as to add the nation’s Ghana Carbon Registry (GCR) to a blockchain-based Internationally Transferred Mitigation Outcomes (ITMO) community. This follows an preliminary settlement between the 2 events to operationalize the digital buying and selling and settlement of ITMOs.
Ruled underneath Article 6.2 of the Paris Settlement, ITMOs are a type of carbon credit score used to incentivize local weather motion and contribute to international efforts to mitigate local weather change. They are often transferred internationally and used to generate local weather finance for local weather mitigation and adaptation tasks.
By operationalizing ITMOs, Ghana strengthens its place as a pacesetter in Africa’s carbon markets. Concurrently, the settlement between the GCR and Singapore’s ZERO13 helps the Southeast Asia nation keep its standing as a worldwide hub for carbon credit score buying and selling.
John Kingsley Krugu, Govt Director of the EPA, commented:
“With the work EPA and different our bodies in Ghana have been doing, the nation has proven it may be a pioneer in making Article 6.2-related ITMO exercise a actuality underneath its implementation settlement with Singapore.”
As a part of the association, Singaporean firms will be capable to safe high-quality carbon credit from Ghanaian tasks, serving to them meet their emissions discount targets. Hirander Misra, CEO of Zero13, praised GCR’s collaboration together with his firm, saying it demonstrates how know-how can play an important position in advancing local weather motion.
This settlement between Singapore and Ghana units a precedent for worldwide collaboration on carbon markets and local weather motion.
Whereas hailed for providing a promising mechanism for worldwide local weather cooperation, ITMOs have a number of drawbacks together with the chance of double counting, the shortage of standardized methodologies in addition to market volatility and worth uncertainty. To beat these challenges, international locations should agree on and implement strong worldwide governance, clear accounting, and rigorous verification processes.
