Description: 

A $29.5 million FIP program to reduce deforestation in Ghana intended to reduce greenhouse gas emissions while conserving biodiversity within the country’s High Forest Zone.

Background:

In Ghana, most of the population relies directly on natural resources for food, water, and livelihoods. While the nation has seen a positive trend in poverty alleviation over recent decades, forest cover has been nearly halved since the year 2000.

The Government of Ghana has recognized the increasing price of environmental degradation which have been estimated to cost the country 10 percent of GDP annually. However, it is also acknowledged that the country suffers from poor environmental governance, volatile commodity markets, and geographic disparities between resources and population. Mining, timber harvesting, and agricultural expansion are the principle culprits of natural resource degradation.

The project leverages $29.5 million in FIP resources for upstream policy interventions, practical landscape level pilot demonstrations, capacity building, and communications efforts to reduce deforestation and avoid significant carbon emissions.

This project aligns with Ghana’s vision to modernize its agricultural sector while reducing vulnerability to climate change, mitigating greenhouse gas emissions, and raising its population out of poverty.

Objectives and Outputs:

The overall goal of FIP-financed activities in Ghana is to reduce greenhouse gas (GHG) emissions from deforestation and forest degradation, while reducing poverty and conserving biodiversity. The FIP set of activities collectively aims to (i) ensure the integrity, restoration, and sustainable management of forest reserves by introducing more inclusive management and benefit sharing models, financial incentives, and investments; (ii) restore forest cover in off-reserve areas by securing tree tenure and benefits, forest plantations and landscape restoration, and rehabilitation of degraded forest land; (iii) increase trees and enhance carbon stocks in the farming system by promoting sustainable cocoa and agriculture practices; and (iv) develop viable alternative livelihoods for local communities by addressing a broad range of technical, financial and market incentives, to reduce pressure on existing forests.

The project is comprised of four main components. The core of the project is a set of two pilot activities implemented in a few target landscapes, designed to address key drivers of deforestation. The policy reforms, institutional strengthening, capacity building, and communications activities in other components aim to support and sustain the pilot and demonstration activities and lay the ground work for later replication and scaling up.

The ultimate beneficiaries of this operation are the communities in the Western and Brong Ahafo Regions who manage land and forests for their livelihoods, and will have access to new skills, opportunities and markets.

Other stakeholders, including the private sector and civil society, will benefit through institutional and policy reform, and improved resource management practices in the key regions and sectors of focus. Both investors and communities will gain from the clarification of rules and processes needed to promote investment in landscapes, trees, and timber that will contribute to Ghana’s development in the future. The project will also contribute to climate change mitigation with global benefits.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

 
Project Details
Project Document | MDB Project Implementation Services | Proposed Decision 
​Approved on December 19, 2014 (Approved Decision)
Approved amount(s):
USD 29.5 million (grant funding)
USD 750,000 (MPIS)

Comments and Responses:
United Kingdom (November 20, 2014) 
United States (November 26, 2014)
United Kingdom (December 18, 2014) 
United States (December 18, 2014)
IBRD Response to United States & United Kingdom (December 15, 2014)