Swiss carbon credit procurement agency Klik Foundation has pledged $850 million for carbon reduction projects in Ghana.
The Klik Foundation compensates abroad part of the emissions of Switzerland’s transport sector under the Swiss CO2 Act, by purchasing Internationally Transferred Mitigation Outcomes (ITMOs) in accordance with Article 6 of the Paris Agreement.
The newly announced investment will go towards a total of six carbon reduction projects in Ghana, aiming to reduce 6 million metric tons of carbon dioxide emissions and support the local economy by creating 7,000 new jobs.
Of the $850 million, $700 million will be invested in said projects, whereas the remaining $150 million are to be generated from future carbon credit revenue.
The projects selected by the Klik Foundation span a range of different sectors, including clean cooking solutions, sustainable agriculture in palm oil and rice production, green cooling systems, renewables, electric means of transportation, and composting.
In addition to providing climate benefits, these projects will also greatly benefit local communities in Ghana, particularly women and children.
Using clean cookstoves, for example, reduces the consumption of coal, and therefore makes for cleaner air in schools and homes.
Ghana has been diligently working towards creating the infrastructure and regulatory framework needed to facilitate its participation in the global carbon market, and the partnership with the Klik Foundation is testament to the country’s willingness to mitigate the climate crisis.
The carbon market can be a powerful tool to help reduce the world’s CO2 emissions, while building a more sustainable, environmentally-friendly economy for the generations to come.