The Secretary-General of the International Chamber of Commerce Ghana, Emmanuel Doni-Kwame, says there’s the need to develop financial policies that will promote environmentally friendly practices since most investors are gradually using clean price as an incentive for investing in bonds.
Clean Price in the global financial space is when investors decide to forfeit accrued interest payment on bonds.
Speaking to Citi Business News on how Ghana can take advantage of such bonds, the Secretary-General of the International Chamber of Commerce Ghana, Emmanuel Doni-Kwame, urged the Finance Minister to think of climate change initiatives for future benefits.
“Finance is a key thing, and once we are talking of businesses getting involved, then you should create an enabling environment for people to invest in clean energy, research and technology development as well as building capacities.”
“Currently, businesses are responding by developing the necessary technologies, products, and services to adapt to the effect of climate change. Globally, we know countries are developing clean bonds and as far as the price agreement is concerned, Article 6 [Paris Agreement] which is still being negotiated, is to create the global standard for trading in carbon credit,” he said.
Paris Agreement
Article 6 of the Paris Agreement aims at promoting integrated, holistic and balanced approaches that will assist governments in implementing their NDCs through voluntary international cooperation.
This cooperation mechanism, if properly designed, should make it easier to achieve reduction targets and raise ambition. In particular, Article 6 could also establish a policy foundation for an emissions trading system, which could help lead to a global price on carbon.
The Paris Agreement is an agreement within the United Nations Framework Convention on Climate Change, dealing with greenhouse-gas-emissions mitigation, adaptation, and finance, signed in 2016.