Financing Climate Change In Ghana: An Assessment Of Policies And Incentives For Private Sector Participation

Abstract

For Ghana to achieve a major reduction in greenhouse gas emissions and adapt to current climate change impact, whilst maintaining its development mission, it requires stronger financial support with private sector participation. The study was therefore set forth to assess the existing policies and incentives available for private sector participation in climate change financing in Ghana. To accomplish this objective, purposive sampling technique was used to identify twenty- three (23) key informant stakeholders. Findings from the research show that that both private and public sector have much understanding of climate change financing in Ghana as well as investment opportunities that exist in climate change mitigation and adaptation. However, the findings of the study revealed that the private sector faces several challenges such political and macroeconomic instability, regulatory environments, development and operation of new technologies etc., hinders the private sector in mobilizing funds for climate change activities. The challenges notwithstanding, tax rebate, waiver of taxes and duties on green technology, subsidies, feed-in tariffs, inter alia could be useful to attract private sector investment, as well as a formalized pathway for public sector to collaborate with the private sector. The study recommends the need to clarify and reduce the cumbersome application process for climate finance. This will aid capacity building for private sector as well as provision of more incentives to attract investment into climate change.