Banks in Ghana urged to increase investment in biodiversity protection

Investment in biodiversity protection should be increased by banks and financial institutions in Ghana, according to a stakeholder workshop on the country's Biodiversity Finance Plan. Organized by the UNDP Ghana, the meeting brought together government officials, regulators, banking representatives, and development partners to explore practical solutions for redirecting financial flows from activities that cause nature loss to those that promote environmental restoration.

Dr Saeed Abdul Razak, Environment and Climate Lead at UNDP Ghana, pleaded with the banking sector, which manages nearly GH¢647 billion in assets, to step up investments in biodiversity conservation. Banks must treat biodiversity with the same importance as they give to credit and market risks. This includes screening clients for deforestation, overfishing, pollution and other nature-related impacts, directing a portion of their Corporate Social Responsibility funding into biodiversity, and conducting training and public awareness campaigns.

Dr Razak highlighted that UNDP is collaborating with the Ministry of Environment, Science and Technology and the Ministry of Finance to develop the Biodiversity Finance Plan. This plan aims to bridge the gap between Ghana's economic development route and nature conservation, not only by mobilizing new funding for biodiversity but also by identifying and removing harmful incentives that harm the environment and threaten livelihoods.

Mr Raymond Ohene Ofori, Deputy Director at the Ministry of Environment, Science and Technology, explained that the government is pursuing a unified governance framework to ensure all sector players strive towards a common goal: safeguarding nature and the environment. The government's policies, such as the Environmental Protection Authority Act 2025 (Act 1124) and Ghana's Green Taxonomy, demonstrate this commitment.

Mr Kingsley Owusu Anom, Head of Environment, Social and Governance at the Agricultural Development Bank, noted that the banking sector's assets under management account for about 45% of Ghana's GDP. He warned that biodiversity degradation could pose risks to the survival of banks, as almost all their assets depend on nature. Anom urged banks to develop specific biodiversity-focused financial products and integrate environmental and social risks into their lending decisions.

He also called for additional incentives from the government, such as tax rebates and support to access funding from multilateral institutions, the Green Climate Fund, and other development partners, to encourage increased investment in biodiversity conservation.