Ghana requires an estimated US$9.3 billion to finance critical climate mitigation and adaptation programmes, according to the 2025 Financial Stability Review, underscoring mounting concerns over the country’s vulnerability to climate-related economic shocks.
The report, prepared by the Financial Stability Council, warned that without substantial investment in climate resilience and emissions reduction measures, Ghana could face severe long-term economic losses, including significant declines in productivity, agricultural output and financial sector stability.
According to the Review, projected Gross Domestic Product losses linked to climate change could range between eight and 30 per cent by mid-century if effective mitigation strategies are not implemented.
The report further cautioned that flood-related losses are expected to double to approximately US$200 million annually by 2050, while rising temperatures and changing weather conditions threaten agricultural productivity and food security.
The Review stressed that the scale of the financing challenge requires stronger mobilisation of both public and private capital, alongside innovative financing instruments such as green bonds and climate-focused investment frameworks.
“The scale of financing required calls for innovative funding mechanisms and stronger regulatory frameworks to attract investment into climate-resilient projects,” the report stated.
The Review noted that climate-related shocks could directly affect Ghana’s financial system through deteriorating asset quality, rising insurance liabilities and weaker investment returns, increasing risks to broader macroeconomic stability.
As part of efforts to strengthen sustainable finance, the Securities and Exchange Commission has introduced guidelines governing the issuance of green bonds in line with international standards.
Under the framework, proceeds from green bonds are expected to finance environmentally sustainable projects, including renewable energy, climate adaptation initiatives, clean transportation systems and green infrastructure development.
The report said the framework also mandates regular disclosure requirements and independent verification systems to prevent greenwashing and strengthen investor confidence in sustainable finance instruments.
According to the Review, a credible and transparent green finance regime could help Ghana attract institutional investors while supporting the country’s broader climate and development commitments.
The report also revealed that financial institutions are increasingly being encouraged to incorporate environmental, social and governance (ESG) considerations into operational and risk management decisions as climate-related risks become more financially material.
Despite progress in building a regulatory foundation for sustainable finance, the Review stressed that stronger policy coordination, sustained regulatory support and accelerated investment mobilisation remain essential to closing Ghana’s climate financing gap and strengthening resilience against future climate shocks.
