Ghana calls for equitable transition under proposed Fossil Fuel Treaty

Ghana has urged for a fair and inclusive approach to the proposed Fossil Fuel Treaty, emphasizing that the global shift to cleaner energy must consider the economic interests, energy security, and national priorities of countries that produce fossil fuels. Minister of Foreign Affairs Samuel Okudzeto Ablakwa highlighted the need for adequate financing, technology transfer, and economic diversification measures to prevent developing nations from being left behind during the transition.

Ablakwa pointed out that climate change poses significant threats to human security, livelihoods, and sustainable development, particularly in small island developing states. Ghana acknowledges the necessity for collective climate action but asserts that national circumstances, including energy needs, development levels, and historical contributions to greenhouse gas emissions, must influence the transition.

Oil and gas development have played a crucial role in Ghana's economic transformation, providing employment, foreign exchange earnings, and public revenues. These petroleum receipts have supported education, health, infrastructure, and renewable energy development, while natural gas has been instrumental in electricity generation and cooking.

Ghana's approach to the transition was shaped by President John Dramani Mahama's reset agenda, which prioritizes economic transformation, industrial diversification, energy security, and sustainable development. The Minister emphasized that a diversified energy system could stimulate new enterprises, create jobs, and facilitate the growth of emerging green industries.

However, the Minister cautioned that petroleum investment remains vulnerable to global energy transition policies, regulatory and fiscal conditions, and geopolitical uncertainties. Additionally, inadequate emissions reduction could hinder access to export markets, while carbon-related trade measures might undermine the competitiveness of energy-intensive manufactured products.

Considering the economic, financial, and social implications, Ablakwa stressed that equity, climate justice, and the principle of common but differentiated responsibilities and respective capabilities should guide negotiations. He warned that a one-size-fits-all timetable could impede sustainable development and effective climate action.

To facilitate an equitable transition, Ghana proposed a dedicated financing mechanism for renewable and low-carbon projects, as well as debt restructuring, relief, grants, and concessional loans from multilateral development banks. The Minister also called for technology transfer, technical assistance, and investment mobilization, along with assistance for retrofitting or repurposing oil and gas infrastructure for cleaner energy applications and supporting economic diversification.

Ablakwa highlighted the importance of training, economic empowerment, and alternative livelihood programs to protect workers and communities dependent on petroleum activities. The success of decarbonization should be measured by its impact on decent work, resilient communities, and inclusive prosperity. The Minister stressed that international cooperation should complement, not displace, national energy strategies, and that respecting energy sovereignty and providing predictable international support are crucial for maintaining public confidence.

Ghana reaffirmed its commitment to multilateralism and the objectives of the Paris Agreement, welcoming continued engagement on the proposed treaty. Discussions should explore the treaty's potential legal and governance arrangements without prejudging participating countries' positions.