Financing climate change mitigation: An assessment of the private sector investment opportunities in Ghana

Abstract

The funding required for climate mitigation in Africa is estimated at 10 billion U.S. dollars annually. Unfortunately, the contributions by advanced countries will not be enough to meet the mitigation needs of developing countries. Emerging economies like Ghana have low financial capacity to effectively mitigate the harsh impacts of climate change. However, the proportion of private sector investment for climate change mitigation (CCM) keeps increasing—making it a major source of climate change finance. The paper examined the investment opportunities in CCM for private firms in Ghana. The study used qualitative research approach through in‐depth interviews with 25 private sector organisations, key development partners, and climate change experts and policy makers. The study found a number of opportunities for private sector investment in energy, agriculture, transport, waste, industry, and buildings in Ghana. The private sector has competencies, which can make a unique contribution to climate mitigation through investment in innovative technology and capacity building. The study revealed a number of barriers, which are hindering the private sector from investing in CCM in Ghana. The paper urged the government to create awareness of the investment opportunities and provide incentives to attract the private firms to scale up climate change financing and investment in Ghana.

Private Telecommunication Companies and Climate Finance: Evidence from the Niger Republic

“…Hence, climate change affects negatively the private sector and therefore hinders its financial performance [1,2]. Although, the effects of climate change on the private sector, the private sector could play a key role in financing change adaptation and mitigation [3,4]. Many of the private sectors [1,5] gave importance to financing climate actions to respond to the risks associated with the climate.…”

“…Furthermore, publicprivate partnership has been reported to be a great policy response to climate change [9] such as a partnership for adaptation [8]. In addition to that, the private sectors play a major role in reducing greenhouse gases and enhancing carbon sinks [3,10,12] by investing in sustainable forest management [13,14]. In Niger, the private telecommunication companies implemented several initiatives and some of them are shown in Pictures 1, 2, 3, 4, 5 and 6.…”

“…Other scholars explore dressed the impacts of the performance of the corporate social responsibility on the perception of the telecommunication companies in a specific country (Nigeria), [18], focused on the role of the private sector in cities climate change adaptation in urban areas [19], examined the responsibility of private sectors in adapting to climate change [20]. In Wes African countries, only a few studies explored the role of private sectors in financing climate change mitigation such as in Ghana [3] and some studies such as those of [6],21] who demonstrated the role of the private sector in financing adaptation.…”

The effect of ownership on sustainable development and environmental policy in urban waste management: An explicatory empirical analysis of Italian municipal corporations

“…Municipalities have played a crucial role in this process (Pan et al, 2020; Perey, Benn, Agarwal, & Edwards, 2018), starting to set up companies in which the local government has either a full (Chen, Haight, Geng, & Fujita, 2010; Masonganye & Mukonza, 2018) or majority or minority ownership (Calza et al, 2014; Cordeiro, Profumo, & Tutore, 2020; Jia & Zhang, 2012; Liao, Zhang, & Wang, 2019; Pan et al, 2020; Prado‐Lorenzo, Gallego‐Alvarez, & Garcia‐Sanchez, 2009; Zaid, Abuhijleh, & Pucheta‐Martínez, 2020). Municipally owned corporations (MOCs) can be owned by single or multiple municipalities or shared by the public and private sector despite local bureaucracies (Cruz & Marques, 2013; Lamboglia, Fiorentino, Mancini, & Garzella, 2018; Pan et al, 2020), incorporating characteristics of both (Ahenkan, 2020; Kolk & Lenfant, 2018; Musacchio & Lazzarini, 2014; Rahman, Billah, & Hack‐Polay, 2019). Public administration‐owned enterprises became central actors in the improvement of sustainable development delivery (Dumay, Guthrie, & Farneti, 2010; Farneti & Guthrie, 2009), and their response to existing and future challenges can influence the development of many regions across the planet (Córdoba‐Pachón, Garde‐Sánchez, & Rodríguez‐Bolívar, 2014).…”

The impact of heuristic availability bias on investmentdecision‐making: Moderated mediation model

“…Contrarily, Hirshleifer and Luo (2001) and Daniel, Hirshleifer, and Teoh (2002) argued that investors are irrational and markets are ineffective, ergo the investors in market places may behave differently based upon their heuristic values (Subrahmanyam, 2007). Ahenkan (2020) proposed the government to develop consciousness of the investment opportunities and give incentives to motivate the private organization to scale up climate change investment and financing in Ghana. Greater stock investor's awareness about the psychological factors assists in rational investment decisions.…”