Brief 2: Ghana Climate FInance Brief w/ Layout pp2-11

This policy brief by the Climate Policy Initiative analyzes climate finance flows in Ghana for 2019 and 2020, revealing a significant gap between the tracked annual average of USD 830 million and the estimated investment needs of USD 9.3-15.5 billion. The document details the dominance of public funding, the concentration of investments in the AFOLU and energy sectors, and the challenges associated with tracking private sector investments and adaptation finance.

• Ghana faces a severe climate finance gap, with only a small fraction of its required investment being met. An annual average of USD 830 million was tracked in 2019 and 2020, which represents only 5-9% of the estimated required investment of between USD 9.3-15.5 billion.
• Climate finance in Ghana is heavily reliant on public sources, which accounted for 87% (USD 722 million) of total flows. The primary public contributors were domestic budgets (USD 271 million) and Multilateral Development Financial Institutions (USD 248 million), primarily providing grants and low-cost project debt.
• Private sector finance is significantly underrepresented, making up only 13% (USD 106 million) of overall climate finance. The vast majority of this private funding (88%) was directed toward energy systems, split almost equally between equity (45%) and debt (47%).
• Funding is distributed almost equally between adaptation (49% or USD 403 million) and mitigation (47% or USD 386 million). Adaptation finance is primarily funded by public actors and relies heavily on grants (53%) and concessional debt (42%), while mitigation finance uses a more diverse mix of instruments.
• The Agriculture, Forestry, and Land Use (AFOLU) and energy sectors are the largest recipients of climate finance, together accounting for over 53% of total flows. AFOLU received the highest overall investment at 28% (USD 235 million), while energy systems received 25% (USD 207 million), with 65% of energy investments focused on electricity generation.
• Tracking climate finance is hindered by a lack of standardized reporting methodologies and the absence of a national-level taxonomy. These issues are particularly acute for private sector investments and adaptation projects, which are often small components of larger portfolios.
• To close the finance gap, the brief recommends improving the granularity of national tracking, deploying innovative instruments like green bonds, guarantees, and blended finance, and building pipelines of investable companies, including SMEs, to attract private capital.

APA

Climate Policy Initiative (n.d.). Brief 2: Ghana Climate FInance Brief w/ Layout pp2-11. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/12/Climate-Finance-in-Ghana.pdf

Chicago

Climate Policy Initiative. Brief 2: Ghana Climate FInance Brief w/ Layout pp2-11. n.d. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/12/Climate-Finance-in-Ghana.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Brief 2: Ghana Climate FInance Brief w/ Layout pp2-11 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2023/12/Climate-Finance-in-Ghana.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiativendbrief, author = {{Climate Policy Initiative}}, title = {{Brief 2: Ghana Climate FInance Brief w/ Layout pp2-11}}, institution = {Climate Policy Initiative}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/12/Climate-Finance-in-Ghana.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }