Ghana and Singapore companion to spend blockchain skills to facilitate the buying and selling of carbon credits.
Cementing Ghana’s Space as Africa’s Carbon Market Chief
Ghana’s Environmental Protection Company (EPA) has entered into an agreement to add the nation’s Ghana Carbon Registry (GCR) to a blockchain-primarily primarily based mostly Internationally Transferred Mitigation Outcomes (ITMO) network. This follows an initial agreement between the two events to operationalize the digital buying and selling and settlement of ITMOs.
Dominated below Article 6.2 of the Paris Settlement, ITMOs are a originate of carbon credit abnormal to incentivize climate action and make contributions to global efforts to mitigate climate alternate. They also can very effectively be transferred internationally and abnormal to generate climate finance for climate mitigation and adaptation tasks.
By operationalizing ITMOs, Ghana strengthens its discipline as a main in Africa’s carbon markets. Simultaneously, the agreement between the GCR and Singapore’s ZERO13 helps the Southeast Asia nation aid its situation as a world hub for carbon credit buying and selling.
John Kingsley Krugu, Executive Director of the EPA, commented:
“With the work EPA and other bodies in Ghana were doing, the nation has proven it most regularly is a pioneer in making Article 6.2-linked ITMO suppose a truth below its implementation agreement with Singapore.”
As allotment of the draw, Singaporean companies shall be in a discipline to steady excessive-quality carbon credits from Ghanaian tasks, serving to them meet their emissions low cost targets. Hirander Misra, CEO of Zero13, praised GCR’s collaboration with his company, announcing it demonstrates how skills can play the biggest role in advancing climate action.
This agreement between Singapore and Ghana sets a precedent for world collaboration on carbon markets and climate action.
Whereas hailed for offering a promising mechanism for world climate cooperation, ITMOs comprise several drawbacks including the probability of double counting, the lack of standardized methodologies as effectively as market volatility and fee uncertainty. To conquer these challenges, international locations have to agree on and put in force great world governance, transparent accounting, and rigorous verification processes.
