Green finance ambitions risk failure – ESS

… if environmental degradation continues unchecked

By Ebenezer Chike Adjei NJOKU

Efforts to advance the country’s green finance agenda could be undermined unless the destruction of forests and pollution of water-bodies caused by illegal mining are brought under control, speakers at the Environmental Sustainability Summit (ESS) 2026 opening session have warned.

At the summit, organised by B&FT under the theme ‘Inspired by Nature. For Climate. For Our Future’, experts argued that while Ghana has made significant progress in developing frameworks for green finance and carbon markets, continued degradation of natural ecosystems threatens the credibility and long-term viability of those efforts.

Opening the summit, B&FT Chief Executive Officer Dr. Godwin Acquaye challenged what he described as the tendency of many Ghanaian businesses to treat environmental sustainability as a charitable cause rather than a core business concern.

Addressing an audience of financiers, policymakers and environmental practitioners, he argued that low levels of private sector participation in sustainability conversations reflect a broader failure to recognise the link between economic activity and environmental outcomes.

“When the last tree dies, the last man dies. Yet still, human beings go out to the field and cut trees indiscriminately,” Dr. Acquaye said.

He cited Ghana’s estimated two percent annual deforestation rate as evidence of growing pressure on the country’s natural resources and said the summit was intended to reinforce the message that environmental protection is fundamental to long-term economic development.

According to the Forestry Commission’s latest scientific assessment, released in February 2026 and based on national satellite remote-sensing data, 8,923.8 hectares of forest reserves had been heavily impacted by illegal mining activities as of December 31, 2024.

The affected area spans 45 forest reserves and one national park and is equivalent to approximately 12,500 FIFA-standard football fields.

Ashanti Region recorded the highest level of destruction with 4,948.9 hectares affected across 13 forest reserves, followed by Western North Region where 2,195.7 hectares were impacted across 12 reserves.

Erastus Asare Donkor, Investigative Journalist with the Multimedia Group and leading voice in reporting on illegal mining, during a presentation at the summit noted that the number of affected forest reserves had increased to 50 by November 2025.

He further cited data from the Water Resources Commission indicating that more than 60 percent of the country’s water-bodies have been polluted by illegal mining activities.

“We have launched eight programmes since 2017. We have had task forces, secretariats, bans and military deployments – and the forests are still being destroyed. The water-bodies are still being poisoned. At some point, we have to stop asking why the interventions are failing and start asking who is making sure they fail,” he lamented.

The concerns come at a time when Ghana is positioning itself as a leading player in Africa’s emerging carbon market ecosystem.

The country has signed bilateral carbon trading agreements with Switzerland, Sweden and Singapore under Article 6 of the Paris Agreement. President John Dramani Mahama has disclosed that 24 million tonnes of carbon dioxide from Ghana’s carbon budget have been allocated for international trade, with 5.2 million tonnes already authorised for the transaction.

The Carbon Market Office, established within the Environmental Protection Authority (EPA), is currently tracking approximately 402 million tonnes of potential carbon credits seeking authorisation – many of them linked to forest conservation and ignored anti-deforestation initiatives.

The speakers observed that destruction of forest resources presents a significant challenge to efforts aimed at monetising environmental assets through carbon finance mechanisms.

The summit also highlighted contrasting approaches to environmental stewardship within the mining sector.

Presenting on behalf of Gold Fields Ghana Limited, Dr. Jones Mantey – Principal Specialist for Mine Closure (Africa) – outlined the company’s environmental performance over the past three decades. He reported that the Tarkwa mine currently reuses 94 percent of its water, has reduced freshwater withdrawals by 82 percent compared to 2018 levels, planted 818,595 trees and rehabilitated 622 hectares of land.

The company has also recorded zero Level Three and above environmental incidents and maintains a US$107.2million mine closure bond to cover future rehabilitation obligations.

Dr. Mantey said the company continues to undertake biodiversity conservation programmes, including monitoring wildlife populations and relocating vulnerable species from operational areas, while maintaining ISO 14001 environmental certification standards.

“Thirty years ago, people would have said you cannot mine gold and protect biodiversity at the same time. We have West African Dwarf Crocodiles on our mine periphery. We have pythons we have had to relocate.

“We have rare species we are actively monitoring and protecting. Mining and environmental stewardship are not opposites. But they require commitment, investment and accountability…. and those cannot be optional,” he noted.

In contrast, Mr. Donkor presented evidence of extensive environmental damage linked to illegal mining operations across several districts including Amansie West, Tarkwa, Birim North and Asutifi South.

He noted that cyanide leaching, which is prohibited for small-scale miners under Ghanaian law, is being practised in several mining communities. He also cited instances of school infrastructure being overtaken by mining activities and reported that some residents in affected communities rely on aluminium sulphate to treat polluted water before consumption.

The environmental and economic consequences have also extended to the cocoa sector. Mr. Donkor estimated that between 30,000 and 60,000 hectares of cocoa farms have been lost to illegal mining, contributing to the cocoa supply challenges experienced during the 2023/2024 crop season.

He further highlighted concerns over abandoned mining pits, child fatalities, heavy metal contamination, food pollution and elevated health risks in mining communities.

Speakers argued that the challenge facing Ghana is increasingly one of governance rather than financing.

Mr. Donkor reviewed a series of anti-illegal mining interventions introduced since 2017, including Operation Vanguard and the National Anti-Illegal Mining Secretariat established in 2025. However, he suggested that corruption, political interference, foreign involvement and weak enforcement continue to undermine progress.

“This is not a resource problem. The EPA exists. The Forestry Commission exists. NAIMOS was just established in 2025. The laws exist. What does not exist consistently is the political will to enforce them without regard to who is doing the mining or who is protecting them,” Mr. Donkor noted.

EPA, represented by Hope Kotoka Ahiabu, a Senior Programme Officer, on behalf of Chief Executive Officer  Professor Nana Ama Browne Klutse outlined measures being implemented to strengthen environmental governance.

The authority pointed to Environmental Protection Act, 2025 as a key legislative foundation for Ghana’s emerging carbon market and sustainable finance ecosystem. It also highlighted introduction of the Integrated Permitting Management System, which has digitised environmental permitting processes to improve transparency and efficiency.

“Effective January 1, 2027, the production, importation, distribution, sale and use of Styrofoam food containers will be prohibited in Ghana. This is not just an environmental necessity,  it is an opportunity for innovation, green entrepreneurship and job creation. The transition to sustainable alternatives begins now,” EPA noted.

This comes as Ghana’s climate commitments under its Nationally Determined Contributions (NDCs) are estimated to require between US$9.3billion and US$15.5billion in investment by 2030.

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