Don’t Use Carbon Credit Revenue For Your Pension Scheme: YCC Ghana to Parliament

The Youth Climate Council Ghana (YCC) has voiced strong opposition to a recent parliamentary proposal to establish a pension fund scheme for Members of Parliament (MPs) using revenues generated from the carbon market. The YCC, an independent youth-led organization advocating for climate action in Ghana, has labeled the move as a blatant misuse of critical climate finance intended for national sustainability efforts.

In a press statement released on February 6, 2025, the YCC expressed deep concern over the proposal, stating that it directly undermines Ghana’s climate commitments under the Paris Agreement. Article 6 of the agreement provides a framework for carbon markets, both voluntary and compliance-based, with the explicit goal of advancing climate action and sustainable development. Diverting carbon credit revenues away from their intended purpose violates international commitments and weakens Ghana’s ability to meet its emissions reduction targets.
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Carbon Credits: A Vital Tool for Climate Action

Carbon credit revenues are crucial for funding greenhouse gas (GHG) mitigation initiatives such as renewable energy expansion, reforestation, climate-smart agriculture, and waste management. The YCC emphasized that these funds are essential for achieving Ghana’s Nationally Determined Contributions (NDCs), which aim to reduce greenhouse gas emissions by 64,000 ktCO2e by 2030. This reduction relies heavily on carbon market mechanisms and international financial support.

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According to the updated NDC document, Ghana requires between US$ 9.3 and US$ 15.5 billion in investment to implement 47 NDC measures from 2020 to 2030. This highlights the importance of ensuring that internally generated funds, such as those from carbon credits, are strictly allocated to climate-related projects. The YCC warned that any deviation from this mandate would be an unjustifiable breach of trust and a setback for climate justice in Ghana.

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A Call for Accountability and Climate Finance Integrity

The YCC also pointed out that Ghana has only met 33% of its Tier 2 emission reduction target, underscoring the urgent need for every available fund to be directed toward climate mitigation efforts. The organization stressed that countries in the global south, including Ghana, are highly vulnerable to climate change, making resilience-building initiatives such as protecting communities from extreme weather and coastal erosion even more critical.

While acknowledging that MPs, like all workers, deserve a fair and structured pension scheme, the YCC argued that this should not come at the expense of Ghana’s already limited climate funds. Instead, the organization urged Parliament to explore more innovative and sustainable revenue sources, such as reviewing current mining leases to increase Ghana’s revenue share, with even a small percentage dedicated to funding the MPs’ pension scheme.
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The Youth Climate Council Ghana called on civil society organizations, climate activists, and the general public to reject the proposal and demand greater accountability in climate finance governance. The YCC remains committed to safeguarding Ghana’s environmental future and ensuring that climate finance serves its rightful purpose in building a sustainable, climate-resilient nation for all.

In conclusion, the YCC urged Parliament to prioritize long-term economic and environmental sustainability over short-term political convenience, ensuring that Ghana’s carbon market revenue remains intact for climate action.

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