Ghana Moves to Sell Millions of Carbon Credits Under Article 6

Ghana is making strides in the global carbon market, planning to sell a significant portion of its carbon credits under Article 6 of the Paris Agreement. President John Mahama announced that 5.2 million tonnes of CO₂ equivalent (tCO₂e) have already been approved for trade, marking a major step in the country’s efforts to curb emissions and attract investment.

View of reforestation initiatives in Ghana. AI generated picture.

In his first State of the Union address, Mahama underscored the urgent need for climate action. ‘To meet our climate mitigation targets, Ghana has allocated 24 million tCO2 of its carbon budget—totalling 64 million tCO₂—for authorisation under Article 6 of the Paris Agreement,’ he told parliament. He confirmed that three projects have already secured approval to generate the initial 5.2 million tCO₂ for sale.

These projects focus on sustainable rice farming, converting waste into compost, and distributing energy-efficient cookstoves. They have likely received Letters of Authorisation (LoAs), a key requirement for trading credits as Internationally Transferable Mitigation Outcomes (ITMOs) under Article 6.2. While LoAs indicate government backing, they do not guarantee final approval, as additional accounting measures are required to prevent double counting.

By building a robust framework for Article 6 carbon trading, Ghana has become a leader in Africa’s emerging carbon economy. The country has already signed agreements with Switzerland, Sweden, and Singapore, reinforcing its commitment to international climate collaboration.

‘We are committed to strengthening institutional and human capacity through necessary adaptation and mitigation measures to bolster resilience in critical sectors such as agriculture, forestry, energy, and water resources,’ Mahama stated.

With these initiatives in place, Ghana is setting the stage for expanded participation in carbon markets. The country’s proactive approach highlights the increasing role of African economies in emissions trading, paving the way for future investment in sustainable development.