Insights from the Ghana-Singapore Collaboration at COP29 Azerbaijan
A significant milestone in global carbon markets was recently achieved as Ghana and Singapore strengthened their collaboration under Article 6.2 of the Paris Agreement. This agreement allows for cooperative approaches between countries, enabling the transfer of carbon credits known as Internationally Transferred Mitigation Outcomes (ITMOs) to help nations achieve their climate targets in a cost-effective and transparent manner.
This development followed the signing of a Memorandum of Agreement (MOA) between Ghana’s Environmental Protection Agency (EPA) and ZERO13 at COP29 in Baku, Azerbaijan. It demonstrated Ghana’s progress in implementing carbon credit trading and set the stage for further digital innovation within the carbon market ecosystem.
The accompanying panel discussion titled “Is Article 6.2 ITMO trading ready to take off and what does it mean for Ghana in the context of Singapore and beyond?”, moderated by Juliana Bempah, Principal Program Officer of the Environmental Protection Agency, Carbon Market Office of Ghana, featured Hirander Misra, CEO of ZERO13, Dr. John Kingsley Krugu, Executive Director for the Environmental Protection Agency (EPA) in Ghana, and Benedict Chia, Director General (Climate Change) from Singapore’s National Climate Change Secretariat. Together, they explored various themes, such as the role of digital carbon registry platforms, the integration of advanced technologies like blockchain and AI for transparency and accountability, and the broader implications for global carbon markets including the future of carbon credit trading to ensure community benefits and to promote trust and transparency through advanced technology.
Ghana: Leading the Way in African Carbon Markets
The Ghana-Singapore partnership builds on the Implementation Agreement signed in May 2024, positioning Ghana as a pioneer in African carbon markets. Ghana’s operationalisation of the Ghana Carbon Registry (GCR) is a testament to its commitment to leveraging Article 6.2 to unlock new opportunities. Through this agreement, Ghana’s EPA has partnered with ZERO13 to link the GCR to a blockchain-based ITMO Trading Hub and Settlement Network in Singapore.
This infrastructure is instrumental in enabling the secure issuance, tracking, and settlement of carbon credits. For Ghana, the partnership bridges its rich natural resources with Singapore’s financial and technological prowess, creating a pathway for the transparent and efficient trading of carbon credits on a global scale.
Dr. John Kingsley Krugu remarked, “Ghana is proud to demonstrate leadership in operationalising Article 6.2 activity. This collaboration is not just about emissions reductions but also about fostering economic and environmental well-being in Ghanaian communities.”
ITMO Projects and Sustainable Development
The first projects to be activated under this framework are focused on generating ITMOs for trade. These projects span multiple sectors, including agroforestry, which aligns with Ghana’s commitment to sustainable land use and climate action. This initiative also addresses critical socio-economic challenges. By connecting environmental activities with global carbon markets, the Ghana-Singapore collaboration ensures that local communities benefit from job creation, enhanced energy access, and improved environmental conditions.
Hirander Misra emphasised the significance of this effort, stating, “By leveraging our blockchain-enabled ITMO Trading Hub, we are demonstrating how technology can advance climate action while creating tangible benefits for local communities. This partnership is a blueprint for how nations can collaborate on carbon markets to achieve climate and economic goals simultaneously.”
Digital Innovation in Carbon Markets
A key highlight of the panel discussion was the role of technology in enhancing trust and transparency in carbon markets. Ghana’s integration with ZERO13’s blockchain-enabled platform ensures robust data provenance, eliminating issues such as greenwashing, whereas the ability to report the data from registries to the Climate Action Data Trust (CAD Trust), which is an initiative by the Singapore Government, The World Bank and IETA, avoids double-counting.
The panel emphasised the importance of digital measurement, reporting, and verification (dMRV) systems in establishing market credibility. These systems ensure that data from carbon credits is not only reliable but also accessible in real-time, fostering confidence among investors and other stakeholders.
This technology is further bolstered by auction mechanisms integrated into the platform, providing Ghana with access to global buyers and ensuring competitive pricing for its carbon credits. This step maximises the economic value of Ghana’s environmental efforts while maintaining transparency and fairness in trading processes.
Closing the Financing Gap in Climate Action
The panel acknowledged the ongoing challenge of addressing the global financing gap in climate action. With the demand for climate finance estimated by the United Nations at $4 trillion annually, Ghana’s innovative approach to carbon markets provides a valuable example of how public-private partnerships and technology can address these challenges.
The discussion highlighted the role of structured financial products, such as green bonds and derivatives, in de-risking investments and creating liquidity in carbon markets. These tools, combined with robust policy frameworks, are essential for ensuring the sustainability of carbon credit trading, particularly in emerging economies.
The Ghana-Singapore collaboration exemplifies how such partnerships can scale climate finance, making carbon markets more inclusive and effective.
Setting a Precedent for Global Collaboration
The partnership between Ghana and Singapore is not just a bilateral success story—it is a model for international cooperation in carbon markets. By integrating Ghana’s natural resources with Singapore’s financial and technological capabilities, the two nations are setting a precedent for other countries.
Benedict Chia of Singapore’s National Climate Change Secretariat noted, “Singapore’s collaboration with Ghana reflects our commitment to advancing global carbon markets. Together, we are creating a platform that not only addresses climate goals but also brings tangible benefits to communities.”
Next Steps: Building on Momentum
The panel discussion concluded with several actionable steps aimed at advancing the partnership between Ghana and Singapore. Firstly, project developers in Ghana will prioritise the creation of high-quality design documents that incorporate reliable baseline data to ensure robust project design. To facilitate efficient progress, Ghana’s EPA will work on expediting the evaluations of carbon credit projects, allowing for timely approvals. Additionally, ZERO13 will play a vital role by providing stakeholders with demonstrations of its ITMO Trading Hub, effectively showcasing the platform’s capabilities. Ongoing collaboration between the two nations will be essential; they will continue to align their efforts under the Implementation Agreement while exploring new opportunities to scale their initiatives. These strategic steps are critical in securing the long-term success of the Ghana-Singapore partnership and its broader implications for global carbon markets.
Conclusion
The Ghana-Singapore collaboration marks a pivotal moment in the evolution of carbon markets. By integrating cutting-edge technology, robust policy frameworks, and community-focused projects, this partnership exemplifies how nations can address climate challenges while driving economic growth.
As Ghana operationalises its carbon market infrastructure and Singapore establishes itself as a global trading hub, the two nations are setting the stage for a new era of climate action—one that prioritises transparency, inclusivity, and sustainability.
This partnership is more than a milestone; it is a call to action for the global community to embrace innovation and collaboration in the fight against climate change.
