The theme for this year’s Incubating Climate Innovation is Building a Resilient Green Economy in Ghana: Policy, Partnerships and Finance.

Financing for green, climate-smart initiatives is limited, and yet creating and building long-term economic and societal value through sustainable investment, banking, and lending (the notion of sustainable finance) is crucial for a developing economy such as Ghana.  The enquiry of Incubating Climate Innovation 2023 is whether current financial models, products, and impact investment models in Ghana can foster the transition to a robust low carbon economy.

Since its establishment in 2016 over 60% of climate enterprises supported by GCIC have successfully accessed additional seed financing for their business.  Much of this financing, however, whether grant, debt, or equity financing, has come from offshore development and financial institutions and or partners.  Given that Ghana’s economic and indeed human development is vulnerable to climate change and climate-related shocks, this pattern of financing is unsustainable – especially if Ghana is to successfully transition to a low carbon economy that fosters business climate action.

Our posit at the Ghana Climate Innovation Centre is that Ghana can pursue its development objectives while considering the challenges of climate change and the opportunities from the transition.  The country has made determined, ambitious climate commitments.  Nevertheless, stronger institutional coordination across MMDAs is critical, as are fiscal, legal, and regulatory reforms that can strengthen the transition to low carbon pathways and attract private sector finance and investments.

Incubating Innovation 2023 has been structured to engage policy makers, donors, financial institutions, and entrepreneurs especially on the issues of green, sustainable finance and its policy underpinnings. There are significant investment opportunities within the transition to a low carbon economy.  Boosting green finance can significantly reduce climate risks and catalyze investments to address climate impacts.