World Bank approves $4 million grant for inclusive carbon credit program in Ghana

World Bank approves $4 million grant for inclusive carbon credit program in Ghana
Banking & Financial Services
Webp cxr4of4xxy3nf6q2trtuw7c2lxgd
Ajay Banga, 14th president of the World Bank | World Bank website

The World Bank and Solidaridad West Africa (SWA) have signed a grant agreement for a US$4 million project aimed at enhancing social inclusion in the Ghana Cocoa Forest Reducing Emissions from Deforestation and Forest Degradation (REDD+) Program (GCRP). The initiative will engage 20,000 farmers from 100 communities, including women, youth, migrant farmers, and persons with disabilities, to improve their participation in climate action and ensure equitable access to emissions reduction benefits.

Financed by the World Bank-managed Enhancing Access to Benefits while Lowering Emissions (EnABLE) Trust Fund, this project marks Ghana as the first recipient of an EnABLE grant. The fund promotes social inclusion and gender equality in climate finance. Civil Society Organizations (CSOs) will distribute benefits earned by communities for reducing emissions and generating high-integrity carbon credits.

“This grant signing is a major milestone for amplifying the voices of Ghana's most vulnerable groups, particularly women, in the climate change discourse,” said Robert R. Taliercio, World Bank Country Director for Ghana, Liberia, and Sierra Leone. “By partnering with organizations like Solidaridad West Africa that have deep roots in local communities, we can ensure equitable access to emissions reduction benefits in cocoa landscapes.”

The project aims to build capacity by increasing knowledge and skills among target groups to help them engage effectively in the Emissions Reduction Program (ERP). This includes developing communication toolkits tailored to demystify ERP processes and benefit sharing as well as training programs on climate action policies. The inclusion of these groups in REDD+ processes is expected to foster inclusive dialogue and policy formulation.

The Forestry Commission of Ghana, which leads the implementation of GCFRP alongside the Ghana Cocoa Board, supports this initiative due to its potential to stimulate large-scale community participation in sustainable practices that generate more emission reductions.

“Within the Carbon Fund Portfolio and beyond, Ghana has become a reference point for successful jurisdictional REDD+ implementation,” said John M. Allotey, Chief Executive of Ghana’s Forestry Commission. “We count on Solidaridad West Africa and Tropenbos Ghana's expertise to implement the EnABLE project effectively.”

Other activities under this project include support for locally led climate-resilient livelihoods through seed grants and technical assistance. It also focuses on developing green infrastructure and promoting climate-smart agricultural practices. Legal literacy on land rights is another critical aspect aimed at ensuring women's participation in REDD+ programs requiring land access.

“The future of Ghana's forests is at a crossroads,” stated Isaac Kwadwo Gyamfi, Regional Director for Solidaridad West Africa. “The EnABLE project comes at a crucial time when the country is entrenching its access to the carbon market.”

Mercy Owusu Ansah, Country Director Tropenbos Ghana added: “Our approach highlights inclusiveness, gender equality, and social equity so all stakeholders can participate meaningfully and benefit equitably from initiatives aimed at mitigating climate change.”

EnABLE was established in 2020 with support from Germany’s Federal Ministry for Economic Cooperation and Development (BMZ). Its purpose is to support Indigenous Peoples (IPs), Local Communities (LCs), women, youth, people with disabilities among other disadvantaged groups in emissions reduction programs.