Carbon credits have become a vital instrument in the fight against climate change, incentivizing businesses and nations to reduce greenhouse gas emissions by assigning a monetary value to them. This market-driven approach promotes environmental accountability and sustainable practices, bolstering climate adaptation and mitigation projects across the globe while encouraging international collaboration.
Under Article 6.2 of the Paris Agreement, ITMOs serve as a mechanism to promote climate-related initiatives and contribute to global efforts in mitigating climate change. These credits can be exchanged internationally, providing financial support for projects focused on climate adaptation and mitigation. By operationalizing ITMOs, Ghana enhances its position as a leading player in Africa’s carbon markets, while the agreement with Singapore’s ZERO13 reinforces Singapore’s status as a central hub for carbon credit trading in Southeast Asia.