Accra: Ghana requires an estimated US$9.3 billion to finance climate mitigation and adaptation measures, the Financial Stability Review 2025 has stated. The Review emphasized the urgent need to mobilize public and private capital to address the growing climate-related risks confronting the economy.
According to Ghana News Agency, the report prepared by the Financial Stability Council (FSC) indicated that Ghana's climate transition agenda aims for significant reductions in greenhouse gas emissions, but achieving these targets depends on access to sustainable financing instruments, including green bonds. The report stated that the scale of financing required calls for innovative funding mechanisms and stronger regulatory frameworks to attract investment into climate-resilient projects.
The Review warned of significant threats to Ghana's long-term economic outlook due to climate risks, with projected Gross Domestic Product losses ranging between eight and 30 percent by mid-century if mitigation measures are not effectively implemented. It noted that flood-related losses are expected to double to about US$200 million annually by 2050, while heat stress and changing weather patterns could adversely affect agriculture.
The developments have implications for financial stability, as climate-related shocks could affect asset quality, insurance liabilities, and investment returns across the financial sector. The report mentioned that the Securities and Exchange Commission had introduced guidelines governing the issuance of green bonds in line with international best practices to promote transparency and accountability. Under these guidelines, proceeds from green bonds are to be channeled into environmentally sustainable projects, including renewable energy, clean transport, green buildings, and climate adaptation initiatives.
The Review outlined that the framework also requires regular disclosure and independent verification to prevent greenwashing and strengthen investor confidence in sustainable finance instruments. A robust green financing regime would help attract institutional investors and support Ghana's broader development objectives within the context of global climate commitments.
The report also highlighted that financial institutions are increasingly being encouraged to integrate environmental, social, and governance considerations into their operations and risk management practices. It stressed that stronger regulatory coordination and sustained policy support are essential for developing a sustainable finance market capable of meeting Ghana's climate financing needs.
The Review reiterated that although Ghana has made progress in establishing the regulatory foundation for green finance, closing the funding gap remains critical to safeguarding economic stability and building resilience against climate shocks.