Exploring The Potential Of Green Bonds For SDGs Financing In Ghana

The deadline for the achievement of the Sustainable Development Goals (SDGs) is fast approaching, and 2020 commences the decade of action to accelerate SDGs implementation. Financing the SDGs remains a major challenge for many countries especially those in the developing world.

Exploring different innovative ways of SDGs financing within integrated national financing frameworks for which Ghana is a pioneer country, bring to the fore the option of green bonds.

Green bonds are debt securities issued by financial, non-financial or public entities where the proceeds are used to finance 100% environmentally friendly projects. Generally, the overall bond market size of green bonds is estimated at $100 trillion, yet demand is being unmet, calling for more uptakes.

As a step towards the potential issuance of green bonds in Ghana, the Ministry of Finance initiated a process of tapping into green and SDG related bonds. A partnership with the United Nations Development Programme (UNDP) and the Ministry of Finance was established. UNDP and the Ministry of Finance are training key national stakeholders to improve their knowledge of green and SDG related bonds to facilitate Ghana’s active participation in the green bond markets.