Assessing the structural capacity requirements that would allow developing countries to participate in evolving carbon markets. Case study: Ghana
This case study addresses the current capacity in Ghana and the capacity
necessary to participate in an evolving carbon market by focusing on
four fundamental areas:
1) Institutional capacity: Are the right entities in place and empowered to act? Are the appropriate institutional frameworks in place? Political leadership is included in this section
2) Policy level capacity: How can cross governmental policy measures be utilised to support carbon market participation?
3) Capacity for data management (MRV and technical capacity): How will Ghana accumulate and manage the data necessary for greater carbon market participation?
4) Financial Capacity: Is there adequate opportunity and capacity in the market to attract public/private sector capital to support the development of the carbon market?
Bearing in mind that Ghana has yet to register a single CDM project, this paper focuses on both the capacity necessary for participation in the current CDM, as well as the evolving new market mechanisms, recognising that:
- Additional financial, technical and human capacity is needed at all levels to ensure that Ghana is well positioned to develop all of its carbon market opportunities
- A high level of government intervention is not necessary for participation in the current CDM due to the fact that it is an emitter level mechanism that relies on project developers and the private sector for data collection and project implementation
- The Ghanaian government has recently committed to building the institutional capacity necessary for the enhanced data management required for the more advanced national level mechanisms in order to position itself to receive the scaled up finance that has been earmarked for developing countries with progressive adaptation and mitigation plans.
The case study concludes by making recommendations for actions that can be taken to increase Ghana’s participation in the CDM (as it looks now and as it may evolve) and, over time, new market mechanisms.
Marmanie Consulting Ltd, London, UK,19 pp.