Dr. Peter Dery, Director of Environment at the Ministry of Environment, Science, Technology, and Innovation (MESTI), has emphasized the transformative potential of Ghana’s recently launched Green Finance Taxonomy in mobilizing resources for sustainable investments.
Speaking at a meeting organized by the Ministry of Finance on the sidelines of COP 29 in Baku, Dr. Dery commended the initiative, noting its significance in addressing the issue of greenwashing. “This will prevent greenwashing, which is why MESTI fully endorses this initiative,” he said.
Tackling Greenwashing
Greenwashing refers to deceptive practices where companies exaggerate or falsify claims about the environmental benefits of their products or actions. This practice undermines genuine sustainability efforts while allowing polluters to profit from misleading claims.
Dr. Dery revealed that MESTI has previously rejected project proposals upon identifying greenwashing in their methodologies and baselines. He affirmed that the Green Finance Taxonomy would serve as a vital tool to enhance policy revisions and guide green investment selection processes in Ghana.
Strengthening Policies and Compliance
Dr. Dery called on institutions such as the National Development Planning Commission and regulatory bodies to institutionalize policies and legislation that reinforce the objectives of the Green Finance Taxonomy. “We must ensure effective industry compliance and prevent greenwashing,” he urged.
Broadening Environmental Focus
While acknowledging the urgency of climate change, Dr. Dery stressed the need to expand environmental policies to address pollution and biodiversity. “Our approach shouldn’t be narrowly defined by climate alone,” he stated. “We need frameworks that encompass all environmental concerns, fostering sustainable development across multiple fronts.”
About the Green Finance Taxonomy
Launched by the Ministry of Finance, the Green Finance Taxonomy is a classification system designed to guide investments toward sustainable and climate-resilient projects. It defines green investments based on their alignment with specific environmental objectives and targets, providing a roadmap for directing capital toward genuine sustainability initiatives.
The initiative marks a significant step in Ghana’s efforts to attract and manage green investments effectively while ensuring environmental integrity.
