Strong Governance Essential for Climate Investment in Ghana

Strong governance systems are crucial for Ghana to attract climate finance and sustainable investment. Elikem Kotoko, Deputy Chief Executive Officer of the Forestry Commission, made this statement at the Ghana-UK Business Summit in London. He highlighted that this is essential for unlocking significant financial flows.

Mr. Kotoko explained that while Ghana has abundant natural resources and opportunities for environmental restoration, investors look beyond just potential. They demand strong ESG performance, credible governance structures, and a commitment to transparency and accountability. Investors increasingly assess how institutions manage environmental risks and their social impact before committing capital.

Ghana's economic strategy increasingly focuses on attracting foreign direct investment for development. This call for strong governance aligns with global trends where sustainable financing is tied to environmental and social responsibility. Prior agreements, like the UK-Ghana Growth Partnership announced at similar summits, aim to boost investment and jobs, underscoring the need for a stable investment climate. The country's efforts in forest restoration and carbon market development are directly linked to its ability to attract these targeted funds.

“Attracting investment requires more than natural resources. It requires strong ESG performance, credible governance systems, transparency and accountability,” Mr. Kotoko told the summit. He stressed that the governance pillar of ESG focuses on building trust through accountability, safeguards, and stakeholder engagement. These elements are key to making Ghana a reliable destination for green capital.

Strengthening governance will not only improve climate outcomes but also boost Ghana's appeal to investors. Without this foundational strength, climate interventions risk failing to achieve lasting impact. Ghana's commitment to robust monitoring, reporting, and verification systems will be closely watched by potential funders and partners.

The Forestry Commission has enhanced its safeguard systems and benefit-sharing mechanisms. This aims to ensure greater transparency for all stakeholders involved. These improvements are vital for building investor confidence in Ghana's burgeoning green economy sector.

Mr. Kotoko warned that climate projects often struggle to deliver long-term results if environmental, social, and governance factors are not managed cohesively. He stated, “Without all three pillars working together, climate interventions often struggle to achieve lasting impact.” This holistic approach is essential for sustainable development.

Ghana is actively seeking private capital to fund its forest restoration projects and participate in global carbon markets. This initiative was also a key discussion point at the summit. The country is positioning itself as a strong partner in global climate action through these efforts.