By Alex Ababio
The Minister for Finance, Dr Mohammed Amin Adam, has officially unveiled a Climate Financing Division within the Ministry of Finance to drive green growth.
According to the Minister , the new division is created to coordinate and lead initiatives to attract international funding in order foster partnerships with investors and thus implement projects that drive green growth and sustainability.
Dr Amin Adam reiterated that the creation of this division synchronizes with the goal of Ghana in building a sustainable and climate-resilient economy.
He highlighted that effective economic management is closely tied to environmental stewardship.
“The fact is that all available scientific predictions assure us that changing and extreme climate is almost guaranteed.
We are seeing the impact on lives and the economy, already, As a mater of urgency ,this impact requires those of us at the Ministry of Finance to reimagine our ‘business as usual model’ and thus prepare to respond to the financing challenges associated with the changing climate,” he further stated
Urging significant changes in global financial structures, particularly in climate finance, Dr Amin however,stressed the need for Ghana to position itself strategically to leverage these opportunities.
About two years ago in 2022, Green bonds raised $351 billion globally which dominated the sustainable bond market. In comparison, Official Development Assistance (ODA) provided by DAC countries to the whole of Africa in 2023 amounted to $35.1 billion—just 10% of the 2022 Green Bond figure. Out of this, approximately $12 billion was allocated for climate action.
Additionally, in September 2023, Multilateral Development Banks (MDBs) announced a record $125 billion in collective climate financing, more than double the 2019 levels.
Ghana’s reference programme for climate action has revealed that the country requires between $9.3 billion and $15.5 billion over the next decade to mitigate climate impacts.
Dr Amin Adam further noted that the newly established division would serve as the cornerstone for developing the Ministry of Finance climate financing strategies.
“As we decide to leverage innovative financing tools there is the need for us to build an ecosystem conducive to climate action whiles considering driving financial resources toward climate-resilient growth,” Dr. Amin Adam emphasized
The Minister expressed gratitude to President Nana Addo Dankwa Akufo-Addo, the Cabinet, the Office of the Head of Civil Service, the Management Services Division, and his predecessor, Mr. Ken Ofori-Atta, for their contributions to the establishment of the division.
Chief Director’s Remarks
In her opening address, Ms. Eva Mends, Chief Director of the Ministry of Finance, described the inauguration as the realization of a vision to position the Ministry to seize climate finance opportunities and better fulfill its mandate of resource mobilization and allocation.
“We must see this Climate Financing Division as a unit which will not only be a symbol of our commitment to building a climate-resilient economy but also a practical instrument to drive positive change and facilitate Green Growth,” she stressed. She also pledged the Ministry’s ongoing support to the new division.
“We will continue to nurture and nourish the Division to grow and fulfill its role,” she assured.
Acknowledgment from Partners
Representatives from key donor partners who supported the initiative were present at the event. These included Eyeruselem Fasika, Country Manager of the African Development Bank; Dr. Christian John from GIZ; Magdalena Leisten Johnson from the UK Foreign, Commonwealth & Development Office (FCDO); and Alfredo Manfredini Bohm from the Tony Blair Institute.
They commended the Ministry for its forward-thinking approach and noted that the Climate Financing Division would significantly enhance Ghana’s capacity to implement and monitor climate-related projects while improving governance in climate finance.
Leadership of the Division
The Climate Financing Division will be led by Mrs. Phyllis Adwoa Fraikue, Chief Economics Officer.