Ghana's Wahu Mobility secures groundbreaking carbon credit agreement with Switzerland
In a significant leap forward for Africa's carbon finance sector, Ghanaian electric bike startup Wahu Mobility has secured a carbon credit deal with Switzerland. This marks the second global e-mobility transaction under the Article 6 carbon market of the Paris Agreement.
The project, which aims to deploy 117,000 e-bikes over the next five years, targets 752,684 tons of CO2 equivalent in avoided emissions by 2030. So far, four projects have been authorized by Ghana's Environmental Protection Authority. These emissions will be packaged into carbon credits (ITMOs) and sold to Switzerland.
The Klik Foundation, funded by Swiss fuel importers, is playing a key role in this deal. The Foundation is developing 12 projects in Ghana worth up to $1.1 billion in investments. Much of Switzerland's carbon credit buying is done through the Klik Foundation.
The Article 6 carbon market is still fragmented, with countries setting their own rules. However, the rules and regulations for transparency and credit integrity under Article 6 of the Paris Agreement are designed to prevent double counting of emissions reductions, ensure environmental and social integrity, and promote trustworthy accounting and reporting mechanisms.
Countries must submit comprehensive reports on their carbon market activities through the UNFCCC's Centralized Accounting and Reporting Platform (CARP). The Article 6 framework incorporates integrity guardrails requiring safeguards for environmental and social risks, and mechanisms to share benefits equitably among stakeholders.
For Ghana, maintaining rigorous standards and successfully executing early deals are crucial for achieving its goal of becoming a carbon finance leader on the continent. Ghana has set up a carbon registry and approval committee to position itself as a key Article 6 hub.
CEO Valerie Labi stated that the authorization of this deal marks a pivotal moment for Wahu Mobility and Africa's e-mobility sector. Layla Khanfar, a research associate at BloombergNEF, emphasized the importance of establishing integrity in the Article 6 carbon market to unlock demand from corporate buyers and governments.
Switzerland aims to cut emissions by 65% by 2035 (vs. 1990 levels). Ghana aims to sell 24 million tons of CO2 credits under Article 6. This deal is a step towards achieving these goals and demonstrates the potential for sustainable partnerships in the global fight against climate change.
References:
- UNFCCC Article 6 Rulebook
- Scientific groups call for rigorous standards in voluntary carbon market
- Building institutional capacity and frameworks for transparency and integrity under Article 6
- The Paris Agreement Carbon Market (PACM) system
- Article 6.4 Supervisory Body and international oversight
- The deal between Ghanaian electric bike startup Wahu Mobility and Switzerland signifies a significant advancement in environmental-science, as it targets reduced emissions and contributes to the global fight against climate-change.
- Notably, the Klik Foundation, funded by Swiss fuel importers, is instrumental in this deal, with its 12 projects in Ghana totalling up to $1.1 billion in investments, demonstrating a blend of finance, business, and technology for a sustainable future.
- The success of this deal and others like it could propel Ghana to the forefront of Africa's carbon finance sector, as it strives to sell 24 million tons of CO2 credits under Article 6 and become a key Article 6 hub, ensuring transparent and integral accounting and reporting mechanisms, as called for by scientific groups and outlined in the UNFCCC Article 6 Rulebook.
