Ghana leverages blockchain to digitalize carbon credit trading, enhancing transparency and positioning as a key market leader.
Ghana is making significant progress in global carbon markets using blockchain technology for carbon credit trading. In partnership with Singapore, Ghana has digitalized the trading and settlement of Internationally Transferred Mitigation Outcomes (ITMOs), a core element of the Paris Agreement’s Article 6.2. This follows a key deal inked in May 2024 and puts Ghana as an influential player in Africa carbon markets. Further, it strengthens Singapore’s position as an international carbon trading center.
Ghana’s Environmental Protection Agency (EPA) is closely associated with this development. The EPA has partnered with a blockchain firm called ZERO13 to connect the Ghana national carbon registry to a global ITMO Trading Hub based in Singapore. This partnership aims to make carbon credits more transparent and more accessible to issue, track, and trade. Dr. John Kingsley Krugu, the EPA Executive Director, pointed out that this partnership is a significant step towards achieving the goal outlined in Article 6.2 for climate action on an international level.
Blockchain Auction System to Enhance Ghana’s Carbon Credit Market
The first projects under this agreement will center on Ghana’s environmental programs, sustainable terrestrial utilization, and agroforestry projects. These projects will produce ITMOs, tradable instruments on the global market. This will enable companies in Singapore to purchase quality carbon credits from Ghana to meet emission reduction targets and, at the same time, aid development in Ghanaian communities.
In addition, the blockchain platform will feature an auction system of carbon credits. This will ensure that the price is fair and affordable to allow global buyers to enjoy safe access to the Ghanaian credits. The auction mechanism should enhance Ghana’s carbon market and increase the pace of the country’s climate change targets.
Hirander Misra, the CEO of ZERO13, focused on the importance of technology in safe and transparent carbon trading. He pointed out that it contributes to the achievement of national climate objectives but also fosters the region’s economic development.
At COP29, the project will demonstrate how blockchain technologies are useful in implementing climate agreements made at the international level. It is thus important that Ghana and Singapore bring out the best of the two countries’ natural resources and trading infrastructure in order to foster world-over examples in the implementation of climate action and sustainability.
