Stakeholders in the efforts aimed at combating the effects of climate change have advocated the provision of the enabling environment for climate-smart enterprises to thrive.
They contend that these entities have the key to mitigating the effects of climate change.
The stakeholders were unanimous in their call for government and its regulatory agencies to put the appropriate policies in place as well as enforce same.
They made the call during a stakeholder consultative dialogue organised by IMANI Centre for Policy and Education (IMANI CPE) with support from Ghana Climate Innovation Centre (GCIC), in Accra on April 24, 2024.
Climate-smart enterprises are crucial driving forces in the adoption and deployment of critical green technologies to address Ghana’s climate triple challenge – environmental sustainability, economic growth, and enhanced climate resilience.
The event was held against the backdrop that, despite the high recognition of the relevance of climate-smart enterprises, there is a dearth of evidence and awareness of the critical factors to creating an enabling environment for green business to significantly shape the overall climate action of Ghana. As a result, the business environment remains less supportive of climate-smart businesses to scale-up their innovations.
Addressing participants, a Research Consultant at IMANI CPE, Dennis Asare noted that climate-smart enterprises, otherwise known as green businesses, would thrive if the barriers that inhibit their growth are removed.
“The barriers are market, finance, knowledge and technology as well as policy, legal and regulatory,” Mr Asare enumerated.
He explained that the awareness level about the existence of green businesses is very low, thus affects patronage of their products.
“Acceptance of green products is low,” the Research Consultant stressed and called for an increase in consumer awareness to tackle this challenge.
Touching on finance, he said access is hindered by the fact that most banks do not lend funds to such businesses.
“Most climate-smart enterprises depend largely on donor support,” he stated.
According to him, their precarious financial situations prevent them from acquiring the requisite knowledge and technology to run their businesses profitably.
“Ghana spends between 15 to 17 percent of our Gross Domestic Product (GDP) on procurement. It is important for government to engage in green procurement, being conscious of the effect of the things they buy on the environment,” he said in relation to how government can use regulation to boost the climate-smart enterprises sub-sector.
Mr Asare also urged a review of the numerous taxes imposed on the solar production value chain for instance.
“The technology itself is expensive, these taxes only add to the cost, thus making it impossible for people who may want it to have it,” he noted.
Mr Asare stressed that “if we don’t address these challenges, we can do everything to curb the effects of climate change but we will not succeed.”
The stakeholder dialogue was attended by representatives of the media, Non-governmental Organisations, Ministries, Departments and Agencies as well as academia.