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Ghana partners with Singapore for blockchain carbon trading

Ghana partners with Singapore for blockchain carbon trading

GrafaGrafa2024/11/18 20:00
By:Isaac Francis

Ghana’s Environmental Protection Agency (EPA) has advanced its carbon market initiatives through an agreement to integrate the Ghana Carbon Registry (GCR) into a blockchain-based Internationally Transferred Mitigation Outcomes (ITMO) network.

This step follows an initial arrangement to facilitate digital trading and settlement of ITMOs, as outlined under Article 6.2 of the Paris Agreement.

ITMOs serve as a mechanism to promote international climate cooperation by enabling carbon credit transfers that support climate finance for mitigation and adaptation projects.

This move underscores Ghana's growing role in Africa’s carbon market landscape while enhancing Singapore’s status as a global hub for carbon credit trading.

"With the work EPA and other bodies in Ghana have been doing, the country has shown it can be a pioneer in making Article 6.2-related ITMO activity a reality under its implementation agreement with Singapore," remarked John Kingsley Krugu, Executive Director of the Environmental Protection Agency (EPA).

Under the partnership, Singaporean companies will have the opportunity to purchase high-quality carbon credits from Ghanaian projects to meet emissions reduction targets.

Hirander Misra, CEO of Zero13, praised the collaboration, emphasising the role of technology in propelling climate action forward.

Despite its potential, ITMO trading comes with challenges, such as the risk of double counting, the absence of standardised practices, and market volatility.

Addressing these concerns requires strong governance, transparent accounting, and strict verification measures to ensure reliable international cooperation.

This Ghana-Singapore partnership serves as a model for cross-border collaboration in the carbon credit space, illustrating how blockchain technology can enhance transparency and efficiency in environmental initiatives.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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