Explore debt-for-nature swaps to address galamsey – Expert tells Ghana at COP29
Debt-for-Nature Swaps as a Tool to Fight Illegal Mining in Ghana
The African Head of Sustainable Finance at KPMG Africa, John Boateng Akuoko-Tawiah, has proposed the adoption of Debt-for-Nature swaps to address the environmental damage caused by illegal mining, commonly referred to as galamsey, in Ghana. This innovative financial mechanism could support environmental restoration while alleviating some of Ghana’s debt burden.
What Are Debt-for-Nature Swaps?
Debt-for-Nature swaps involve a portion of a country’s foreign debt being forgiven in exchange for commitments to environmental conservation. Examples include reforestation, protecting biodiversity, or reclaiming degraded lands.
Why It’s Relevant to Ghana
- Environmental Degradation: Illegal mining has polluted water bodies, degraded agricultural lands, and stripped forest reserves, exacerbating climate change.
- Climate Change Impact: Forests serve as carbon sinks. Their destruction undermines efforts to curb global warming.
- Economic and Legal Challenges: Despite severe sanctions under the Minerals and Mining (Amendment) Act, 2019 (Act 995), enforcement has struggled to eliminate illegal mining.
Proposed Approach
- Adaptation Fund Utilization: Mr. Akuoko-Tawiah suggested leveraging programmes like those implemented in Brazil to restore degraded ecosystems through tree planting and land reclamation.
- Inter-Ministerial Collaboration: He emphasized the involvement of key ministries, such as:
- Ministry of Finance: For funding and policy alignment.
- Lands and Natural Resources (MLNR): For managing reclamation projects.
- Environment, Science, Technology, and Innovation (MESTI): For technical expertise.
- Stakeholder Engagement: Local communities must actively participate in safeguarding restored ecosystems.
Long-Term Solutions
While Debt-for-Nature swaps could provide immediate relief and support environmental projects, Mr. Akuoko-Tawiah stressed the importance of robust enforcement of mining laws to prevent further environmental damage. This includes:
- Stronger enforcement regimes.
- Community vigilance to deter illegal mining activities.
Climate-Friendly Energy Transition
At the same event, other experts discussed challenges and opportunities in transitioning to cleaner energy sources:
- Kwadwo Kwakye Gyan, Head of Risk and Sustainability Management at GIIF, highlighted the affordability barriers of renewable energy infrastructure like solar and wind power.
- Proposed Solutions:
- Public-Private Partnerships (PPPs): To finance energy projects.
- Government subsidies and reduced tariffs: To make renewable energy affordable.
- Capacity-building: Adoption of appropriate technologies and data-driven decision-making.
Conclusion
Adopting Debt-for-Nature swaps could be a game-changing tool in the fight against galamsey, with the added benefit of alleviating Ghana’s debt. Coupled with robust enforcement of mining laws and a pivot to climate-friendly energy policies, Ghana can achieve sustainable development while restoring its ecological integrity.
