Ghana Launches the First Phase of the Green Finance Taxonomy

By Richard Adorsu-

Photo Credit: qz.com

NEW AFRICA BUSINESS NEWS (NABN) Accra GHANA- Ghana unveiled the 1st Phase of the Green Finance Taxonomy at the 2024 Annual SDGs Investment Fair.

This event served as the landmark to align the country’s financial investments with sustainable development and climate resilience.

The Green Taxonomy is to serve as framework that will guide public and private sector investments towards projects that foster low-carbon growth and help the country meet its climate action commitments under the Paris Agreement.

The event, themed “Unlocking Green Growth: Financing the Future through Sustainable Investments,” brought together key stakeholders from the financial sector, government agencies, and international partners to explore how Ghana’s new taxonomy can accelerate the transition to a climate-resilient economy.

The framework will identify sustainable economic activities and establish criteria for evaluating investments that support renewable energy, green urban development, climate change mitigation, and biodiversity conservation amongst others.

The launch marks the first phase of a comprehensive, multi-phase framework designed to guide investments towards sustainable and climate-resilient projects, a crucial step in advancing Ghana’s green growth agenda.

The Taxonomy’s rollout will occur in three key phases which include the launch, introducing a qualitative framework, outlining technical screening criteria for classifying green investments across various sectors.

The First phase outlines a clear structure for identifying environmentally friendly projects and initiatives.

The second phase will introduce quantitative standards, providing measurable criteria for assessing the environmental impact of investments.

Phase three will implement a Transitional Taxonomy to guide traditional carbon-intensive sectors like oil, gas, and mining sectors and push these industries toward more sustainable practices, balancing economic growth with environmental responsibility.

For New Africa Business News Richard Adorsu Reports, Africa Correspondent