Accra, Friday 19th, October, 2024 – Dr. Mohammed Amin Adam, Minister for Finance has inaugurated a Climate Financing Division in the Ministry of Finance to coordinate and co-lead climate finance initiatives to attract international funds, partner investors and implement projects that promote green growth.
The establishment of this Division the Minister noted is in response to building a sustainable and climate-resilient economy, noting that our economic management is intrinsically linked to ecological stewardship
“The fact is that all available scientific predictions assure us that changing and extreme climate is almost guaranteed. Already, we are seeing the impact on lives and the economy. This impact requires us, as the Ministry of Finance, to reimagine our ‘business as usual model’ and prepare to respond to the financing challenges associated with the changing climate, he noted.
Dr Amin Adam noted further, significant changes in the global financial architecture, especially, with climate finance and to which the country must be positioned to take advantage of.
Statistics indicate that in 2022, Green bonds raised US$351 billion to dominate the sustainable bond market, Official Development Assistance provided by DAC countries to the whole of Africa in 2023 was US$35.1 billion (barely 10% of 2022 Green Bonds). Of this ODA disbursed to Africa, about US$12 billion, was earmarked for climate action.
In September this year, Multilateral Development Banks (MDBs) announced that their collective financing for climate action hit a record high of US$125 billion in 2023, more than doubling the levels in 2019.
Already, the country’s reference programme for climate action indicates that Ghana needed US$9.3 to US$15.5 billion over the next decade to tackle climate impact. The Minister said the Division will therefore serve as the central pillar around which the Ministry will build its climate financing strategies.
“By leveraging innovative financing tools, we can build an ecosystem conducive to climate action, driving financial resources toward climate-resilient growth, Dr Amin Adam added.
The Minister expressed his appreciation to H. E. the President and Cabinet, Office of the Head of Civil Service, the Management Services Division, as well as his predecessor, Mr. Ken Ofori-Atta for their efforts in ensuring that this Division is established.
Ms. Eva Mends, the Chief Director of the Ministry, in her welcoming address, noted that the occasion was a culmination of a vision to reposition the Ministry to respond to opportunities in climate finance to better serve the Ministry’s mandate of strategically mobilizing and allocating resources.
“This Division will not only be a symbol of our commitment to building a climate-resilient economy but also a practical instrument to drive positive change and facilitate Green Growth.”
She pledged the Ministry’s support to the new division saying, “we will continue to nurture and nourish the Division to grow and fulfil its role”.
Present were representatives of donor partners who supported the Ministry in this initiative. These include, Eyeruselem Fasika, Country Manager of the African Development Bank, Dr Christian John, from the GIZ, Magdalena Leisten Johnson, from the UK FCDO, and Alfredo Manfredini Bohm from the Tony Blair Institute.
They commended the Ministry for establishing the Division acknowledged that this will significantly strengthen the country’s ability to implement and monitor climate related projects as well as improve governance in climate finance.
Mrs Phyllis Adwoa Fraikue, Chief Economics Officer is the Director for the Climate Financing Division. END