He said it was projected that the implementation of the framework would lead to a reduction of electricity tariffs to below 4.5 cents per kilowatt hour.

In a speech read on his behalf at an Environment, Social and Governance (ESG) dialogue organised by Auditing and Tax firm, EY Ghana, Mr Krapa said the reduction in tariff would accelerate the socio-economic development of the country.

As a signatory to the Paris Agreement, Ghana is committed to its National Determined Contribution (NDC) targets to address the adverse impact of climate change and increase access to energy for the socio-economic development of the country.

The energy sector has been identified as the leading sector in terms of greenhouse emissions in Ghana and for that matter, the sector has to go through reforms to reduce the emission levels and support the government’s efforts in driving a low-carbon economic development.

In 2022, as part of ongoing reforms in the energy sector, a committee was formed to develop a National Energy Transition Policy Framework to guide a net zero transition.

Mr Krapa said after extensive consultations across the country, the committee has developed a national framework that provides the optimal and sustainable pathway for fuel supply security, diversified energy mix and cost-efficient electricity generation for the country.

Renewable energy

He said nuclear energy, renewable energy and natural gas would underpin the energy mix of the transition from 2031 to 2070, with a forecasted electricity demand of about 380 terawatts hours of energy, with a corresponding installed capacity of 83 gigawatts.

He noted that renewable energy would account for 21 gigawatts of the installed capacity, providing opportunities for businesses in the area of carbon credit markets.

“An estimated 200 million tons of Co2 will be mitigated which would minimise energy-related pollutions and associated health issues including avoidance of about 48,000 premature deaths annually,” he stated.

He said it was expected that over 1.4 million new jobs would be created because of the introduction of new technologies in the energy mix.

“We have rolled out smart initiatives to ensure that the business environment remains green, robust and competitive in the face of the global threats for non-climate friendly goods and services,” he added.

ESG dialogue

The ESG dialogue brought together leaders of international and local corporations, government representatives, heads of sustainability and EY Leadership Team Members to foster discussions of the ESG.

The Country Managing Partner of EY Ghana, Emmanuel Adekahlor, in an interview with the Daily Graphic, said issues on sustainability had become important and core to business survival and strategy.

He said it was for this reason that EY brought together some key stakeholders to discuss the changes that are happening and what they need to do to stay in business.

“As a business, we have to comply with all the regulations and transition to low carbon and also as a service provider, we need to provide solutions to support businesses on the transition journey.

“It’s a journey, we are not there yet but we have begun making the right steps,” he stated.

He said the carbon framework had been developed and the regulations are in place, adding that both the Bank of Ghana and Ghana Stock Exchange have in recent times introduced ESG guidelines.

“So it’s now up to us as businesses and business leaders to study the framework and identify the risks and opportunities and then embed that into business strategy.

“We need to see how businesses can position themselves to achieve compliance and mitigate the risks, while at the same time taking advantage of the opportunities,” he said.