FAQs

Frequently Asked Questions

Paris Agreement & the NDCs

1What is the Paris Agreement?
The agreement adopted by the parties to the UNFCCC at its 21st meeting in Paris is reflected in Decision 1/CP.21.
2What is the objective of the Paris Agreement?
The Paris Agreement sets out a global framework to avoid dangerous climate change by limiting global warming to well below 2°C and pursuing efforts to limit it to 1.5°C.
It also aims to strengthen countries' ability to deal with the impacts of climate change and support them in their efforts.
To scale up their efforts and support actions to reduce emissions; build resilience and decrease vulnerability to the adverse effects of climate change; uphold and promote regional and international cooperation.
3What are the key elements of the Paris Agreement?
1. New emissions reduction targets for the Post-2020 timeframe by key countries.
2. Tools to catalyze more aggressive action over time.
3. Financial support to assist developing countries.
4. Strengthen transparency and accountability frameworks.
5. Spurring more than countries to take climate action.
6. Creating a path to even greater action in the years to come.
4What is Nationally Determined Contribution (NDC)?
Nationally determined contributions (NDCs) are at the heart of the Paris Agreement and the achievement of these long-term goals.
NDCs embody efforts by each country to reduce national emissions and adapt to the impacts of climate change.
The Paris Agreement (Article 4, paragraph 2) requires each Party to prepare, communicate and maintain successive nationally determined contributions (NDCs) that it intends to achieve. Parties shall pursue domestic mitigation measures, with the aim of achieving the objectives of such contributions.
The Paris Agreement maintained a modified international carbon market and non-market instruments in Article 6 to unlock green investment opportunities for collaboratively achieving the NDC, increasing private sector participation and contributing to the global mitigation goal.
5What does the Article 6 of the Paris Agreement say?
1. Parties recognize that some Parties choose to pursue voluntary cooperation in the implementation of their nationally determined contributions to allow for higher ambition in their mitigation and adaptation actions and to promote sustainable development and environmental integrity.

2. Parties shall, where engaging on a voluntary basis in cooperative approaches that involve the use of internationally transferred mitigation outcomes towards nationally determined contributions, promote sustainable development and ensure environmental integrity and transparency, including in governance, and shall apply robust accounting to ensure, inter alia, the avoidance of double counting, consistent with guidance adopted by the Conference of the Parties serving as the meeting of the Parties to this Agreement.

3. The use of internationally transferred mitigation outcomes to achieve nationally determined contributions under this Agreement shall be voluntary and authorized by participating Parties.

4. A mechanism to contribute to the mitigation of greenhouse gas emissions and support sustainable development is hereby established under the authority and guidance of the Conference of the Parties serving as the meeting of the Parties to this Agreement for use by Parties on a voluntary basis. It shall be supervised by a body designated by the Conference of the Parties serving as the meeting of the Parties to this Agreement, and shall aim:
(a) To promote the mitigation of greenhouse gas emissions while fostering sustainable development;
(b) To incentivize and facilitate participation in the mitigation of greenhouse gas emissions by public and private entities authorized by a Party;
(c) To contribute to the reduction of emission levels in the host Party, which will benefit from mitigation activities resulting in emission reductions that can also be used by another Party to fulfil its nationally determined contribution; and
(d) To deliver an overall mitigation in global emissions.

5. Emission reductions resulting from the mechanism referred to in paragraph 4 of this Article shall not be used to demonstrate achievement of the host Party’s nationally determined contribution if used by another Party to demonstrate achievement of its nationally determined contribution.

6. The Conference of the Parties serving as the meeting of the Parties to this Agreement shall ensure that a share of the proceeds from activities under the mechanism referred to in paragraph 4 of this Article is used to cover administrative expenses as well as to assist developing country Parties that are particularly vulnerable to the adverse effects of climate change to meet the costs of adaptation.

7. The Conference of the Parties serving as the meeting of the Parties to this Agreement shall adopt rules, modalities and procedures for the mechanism referred to in paragraph 4 of this Article at its first session.

8. Parties recognize the importance of integrated, holistic and balanced non-market approaches being available to Parties to assist in the implementation of their nationally determined contributions, in the context of sustainable development and poverty eradication, in a coordinated and effective manner, including through, inter alia, mitigation, adaptation, finance, technology transfer and capacity-building, as appropriate. These approaches shall aim to:
(a) Promote mitigation and adaptation ambition;
(b) Enhance public and private sector participation in the implementation of nationally determined contributions; and
(c) Enable opportunities for coordination across instruments and relevant institutional arrangements.

9. A framework for non-market approaches to sustainable development is hereby defined to promote the non-market approaches referred to in paragraph 8 of this Article.
6Has Ghana fulfilled all the Article 6 Cooperative approaches participation requirements?
As a Party to the Paris Agreement, Ghana engages in the Article 6.2 Cooperative Approaches on a voluntary basis consistent with the participation conditions in Decision 2/CMA3 thus, ratified the Paris Agreement in September 2016 and subsequently maintained its latest NDC on the interim NDC registry per Article 4, paragraph 12 of the Paris Agreement to satisfy the obligations under section 4 (a-b) of the Annex to Decision 2/CMA 3 and in consistent with its NDC, Ghana shall authorise and transfer ITMOs in tCO2eq units to meet the requirements in section 1(c) of the Annex to Decision 2/CMA 3.
7What is Ghana’s overall emission target as per the NDC?
Ghana aims to mitigate an absolute 64 MtCO2eq by 2030, with 24.6 MtCO2eq being the unconditional target and 39.4 MtCO2eq as the conditional target.
8What sectors does Ghana’s NDC cover?
The NDC target covers CO2, N2O, CH4, and HFCs gases and constitutes 88% of total emissions in the Energy, Industrial Processes and Product Use, LULUCF and Waste sectors.
The NDC implementation period for achieving the absolute 64 MtCO2eq is nine years, starting from 2021 to 2030, with the option to review the NDC target in 2025 in line with Article 4.9 of the Paris Agreement.

Carbon market office

1What is carbon market office?
An office setup to provide services related to the function of this framework and manage the GCR.
2What is the main function the carbon market office
The carbon market office shall identify all Mitigation Activity Participants (MAPs) involved in the design and implementation of mitigation activities as well as the buying, selling and brokering of ITMOs in relation to the requirements set out in section 5.1.7 of Ghana’s Article 6 Cooperative approaches framework.
3What is GCR?
The Ghana Carbon Registry (GCR) is a registry that has been established by the Government of Ghana to serve as a database for collecting and tracking transactions from mitigation activities at the sector, city and corporate levels. The Registry operates as an online database that collects bottom-up data, uses high-quality standards/protocols for quantifying and verifying GHG emissions reduction of projects, ensures independent third party verification, issues carbon credits generated from such projects and tracks the credits over time in an efficient and transparent manner.

Fees and Charges

1What are the terms and conditions for fees and charges?
All fees shall be charged on the issuance of ITMOs at ex-post except for the mitigation activity participant application fee, which is a one-time ex-ante payment.
The mitigation activity participant application fee shall remain the same for two years before it is reviewed. All ex-post charges on the issuance of ITMOs shall remain unchanged over the crediting period unless the activity experiences material variations from the terms of the authorisation.
Details of the fees and charges are elaborated at Schedule 6 of the Ghana carbon market framework.

Article 6.2 Cooperative Approaches

1What does the Article 6 Cooperative Approaches mandate Parties pursuant to Paragraph 2 & 3 of the Article 6 of the Paris Agreement?
Paragraph 2 of the Paris Agreement mandates Parties to engaging on a voluntary basis in cooperative approaches that involve the use of internationally transferred mitigation outcomes towards nationally determined contributions, promote sustainable development and ensure environmental integrity and transparency, including in governance, and shall apply robust accounting to ensure, inter alia, the avoidance of double counting, consistent with guidance adopted by the Conference of the Parties serving as the meeting of the Parties to this Agreement.
Paragraph 3 states: The use of internationally transferred mitigation outcomes to achieve nationally determined contributions under this Agreement shall be voluntary and authorized by participating Parties.
2What does Ghana’s National framework for market and non-market mechanisms under Article 6 of the Paris Agreement state?
Ghana’s has developed a National framework for market and non-market mechanisms under Article 6 of the Paris Agreement to complement the other domestic and international climate finance resource mobilisation efforts.
Ghana is convinced that its participation in the international carbon market will not only lead to realising the NDC targets and successively increasing its mitigation ambition, but it also has the potential to drive foreign direct green investments to benefit local businesses. However, achieving such multiple benefits will require a strong national policy, regulatory and institutional framework.
That is why Ghana outlined its strategy to participate in the market and non-market mechanism under Article 6 in its updated NDC to the UNFCCC. The strategy defined a specific goal of making approximately 24 million tonnes of emission of its conditional absolute emission reductions available for transactions under Article 6.2 cooperative approaches.
3Is there any legal mandate buttressing Ghana’s National framework for market and non-market mechanisms under Article 6 of the Paris Agreement?
Ghana’s Article 6 cooperative approach Framework has been prepared and adopted in pursuit to Cabinet’s approval of the updated Nationally Determined Contributions to the UNFCCC in November 2022 and in furtherance of the Parliament Ratification of the Paris Agreement to make Ghana accede to the Agreement to pave for implementing the NDC.
The framework document has further received Cabinet endorsement as Ghana's policy document on the market and non-market mechanism under Article 6 of the Paris Agreement.
The framework is also supported by section 2(h) of the Environmental Protection Agency (EPA) Act 490, 1994 which mandates the EPA to prescribe standards and guidelines relating to air pollution, among others.
In furtherance of the relevant provisions of the EPA Act 490, 1994, the following specific functions under Article 6.2 cooperative approach transactions will be implemented:
Authorisation of ITMOs for transfer to acquiring participating Party by the Minster responsible for the Environment Sector under section 3 of the EPA Act 490, 1994.
Transfer and ITMOs through the operations of Ghana Carbon Registry according to procedures laid out in this framework to the acquiring participating Party by Executive Director of EPA per section 2(e) section 2 (o) of the EPA Act 490, 1994.
Institutional structures established under this framework to make decisions as part of the mitigation activity development steps derived its mandate from section 2 (j) of the EPA Act 490, 1994.Including imposed fees on Article 6 cooperative approach transactions in accordance with section 2 (q) of the EPA 490, 1994.
Additionally, legislative instruments will be adopted to strengthen the Article 6 transactions in Ghana.
4How will you ensure Environmental Integrity?
Each mitigation activity aiming to generate ITMOs or Verified Emission Reduction (VERs) for authorisation must demonstrate Environmental Integrity per the established requirements in schedule 2 of this framework document in furtherance of the requirements specified in Decision 2/CMA3 and applicable national laws of any participating Party.
Ghana shall maintain a carbon registry system built on robust NDC accounting rules and apply Corresponding Adjustment (CA) that prevents double counting and only grant authorisation to ITMOs or VERs generated from mitigation activities in its conditional NDCs and those Outside NDC as may be determined by the participating Parties over the 2021-2030 implementation period.
Ghana shall give Formal Recognition (FOR) to all offsets from voluntary carbon market projects to achieve enhanced accounting in reporting greenhouse gases to the UNFCCC.
5What are the steps involved in developing a project under Ghana’s National framework for market and non-market mechanisms?
The Ghana Carbon project must reduce emissions or increase sequestration of Carbon in a manner that is real, permanent, verifiable and additional. Additionality is a concept from international Carbon project accounting principles that requires a project activity is additional to “business as usual” and would not have occurred in the absence of an incentive provided by a Carbon offsets market. Carbon reduction projects registered on the Reserve must be verified by an independent third party after passing the eligibility criteria for Conditional NDC actions and Unconditional NDC actions laid down by the reserve.
After a project has been positively verified and approved by the Reserve, it is officially registered on the Reserve and issued offset credits known as Mitigation Outcomes (MOs).
The Mitigation Activity Cycle is made up of 14 main steps. Click on this link to see details on each of the steps.

4. Voluntary Carbon Offsets Market (VCM) Projects

1What is Voluntary Carbon offsets Market (VCM) Projects?
The VCM is a decentralized market where private actors voluntarily buy and sell carbon credits that represent certified removals or reductions of greenhouse gases (GHGs) in the atmosphere.
2How does Ghana’s Article 6 Cooperative approaches framework regulate Voluntary Market Projects?
Voluntary Carbon Market (VCM) projects seeking to generate offset credits for domestic voluntary commitment programmes shall NOT be subject to the authorisation and tracking requirements.
The decision to accept offset credits generated and use towards the voluntary commitment programme shall be agreed to by the participating entities and recognised by the Article 6 Office.
VCM projects in this category shall apply for Formal Recognition (FOR) under the procedures in section 6.1.6 of the framework to enhance the greenhouse gas emission accounting approach.
It shall NOT be mandatory for any VCM project developer in this category to obtain a Letter of Authorisation (LOA) towards creating Verified Emissions Reductions (VERs) before applying Corresponding Adjustment. However, any project developer that wishes to implement a VCM project has the option to request for Corresponding Adjustment at any stage of its development prior to issuance to increase the offset credits' environmental integrity.
3What is the process involved if a Voluntary Carbon Market project needs Corresponding Adjustments towards other mitigation purposes?
Any VCM project developed to generate VERs for authorisation toward the voluntary domestic offsetting or transfers, as determined by the participating Parties, shall apply the authorisation procedures (section 2.4) laid out in the framework document.
The VCM project seeking to generate authorised VERs for voluntary domestic offsetting or for transfers shall meet the conditions and methodological requirements in schedules 4, 6 and 7 of the Article 6 framework document.
The authorised VERs created from a VCM project shall be issued either on the GCR or a registry linked to the international crediting standards.
4Does Ghana’s Carbon Registry (GCR) accept VCM projects from other ICS?
The Article 6 framework is open for VCM projects from other ICS. The activity developer requests registration of mitigation activity on GCR managed by A6.O or on the registry linked to ICS such as GS, VCS or VERRA. The ICS’ registry shall notify the Article 6 Office via email message of registration of VCM project on its registry and reflected authorisation status.