The Minister of State in charge of Climate Change and Sustainability, Issifu Seidu, is calling for a shift in the approach to co-funding climate projects, proposing the use of carbon credits as a more sustainable and accessible option for developing countries.

Speaking during a meeting with the Green Climate Fund delegation on August 4, 2025, he emphasised the urgent need to make funding models more flexible and tailored to the realities of developing nations.

While acknowledging that recent reforms have helped simplify funding processes, the Minister noted that many countries, including Ghana, still struggle to meet high co-financing requirements due to mounting public debt and limited fiscal space.

“We welcome the progress made in streamlining procedures, but accessibility remains a real challenge. For countries like ours, where debt levels are high, committing to 70 to 75 percent of co-funding is extremely difficult,” he stated.

To address this, he is proposing that carbon credits be included as part of national co-funding contributions. Under this model, countries would be able to generate value through carbon markets and count that toward their share of required funding.

According to the Minister, this approach could create a more balanced and equitable pathway for accessing climate finance.

The proposal reflects Ghana’s ongoing efforts to take a leading role in climate finance reform, ensuring that funding frameworks are not only effective but also fair and inclusive.



DR/MA

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