CandleFocus

Ghana Leverages Blockchain for Carbon Credit Trade

Author: Content Editor
Ghana and Singapore have partnered to utilize blockchain technology for the trading of carbon credits. The agreement involves Ghana's Environmental Protection Agency adding the Ghana Carbon Registry (GCR) to a blockchain-based Internationally Transferred Mitigation Outcomes (ITMO) network. ITMOs are a type of carbon credit used to incentivize climate action and can be transferred internationally for climate finance projects. This move positions Ghana as a leader in Africa's carbon markets and Singapore as a global hub for carbon credit trading. Singaporean companies will now be able to obtain carbon credits from Ghanaian projects to help meet their emissions reduction targets. The agreement sets a precedent for international collaboration on carbon markets and climate action. However, ITMOs face challenges such as double counting, lack of standardized methodologies, market volatility, and price uncertainty, which require robust international governance and verification processes to address.

Related News