Implementing net-zero commitment: Regulatory and policy updates for businesses

By Blessing Sarfo BOAKYE

The global transition to a low-carbon economy is no longer a distant goal but an immediate economic and regulatory reality. Governments, investors, and international institutions are increasingly aligning around achieving net-zero emissions, recognising climate change as both an environmental threat and a material business risk.

Ghana has signalled its commitment to this agenda under the United Nations Framework Convention on Climate Change and the Paris Agreement, with updated Nationally Determined Contributions (NDCs) outlining targets to reduce emissions while sustaining economic growth. These commitments point to a clear policy direction, which is; transitioning toward a net-zero economy through evolving regulatory and institutional frameworks.

For businesses, this shift goes beyond corporate social responsibility. It raises critical issues of compliance, innovation, competitiveness, and long-term viability. Regulatory reforms, policy updates, and growing ESG expectations are reshaping business operations and strategy.

This article examines the key regulatory and policy developments driving Ghana’s net-zero agenda and their implications for businesses, highlighting both compliance obligations and emerging opportunities.

GHANA’S NET-ZERO COMMITMENT IN CONTEXT

Net-zero refers to a balance between greenhouse gas emissions produced and emissions removed from the atmosphere. Ghana’s net-zero ambition is anchored in its broader climate policy framework and international obligations.

As a Party to the United Nations Framework Convention on Climate Change (the main international agreement on climate action), where non-binding goals to stabilize greenhouse gas emissions were set, Ghana together with other countries signed the Paris Agreement on Climate Change which allowed the countries to submit climate action plans and concrete legally binding pledges also known as the Nationally Determined Contributions aimed at limiting global warming to 1.5 degrees Celsius or below.

The updated Nationally Determined Contributions (NDCs) of Ghana outline sector-specific mitigation and adaptation measures across energy, transport, agriculture, waste, water and land use. The updated NDCs has been divided into two main targets; unconditional targets, which are actions the country intends to achieve using domestic resources and conditional targets that depend on international financial and technical support. These commitments aim not only to reduce greenhouse gas emissions but also to build climate resilience and support inclusive economic growth.

KEY POLICY FRAMEWORKS DRIVING NET-ZERO IMPLEMENTATION

Several policy instruments form the backbone of Ghana’s net-zero implementation pathway:

1. 1. National Climate Change Policy (2013)

The National Climate Change Policy (NCCP) provides the overarching framework for climate action in Ghana, including mitigation, adaptation, and low-carbon development planning. This policy came existed even before the PARIS Agreement came into force.

2. Updated NDCs

Ghana’s revised NDC commits the country to more ambitious emissions reduction targets as explained above.

3. National Energy Transition Framework

This was launched in 2022 as a set of long-term policy recommendations to help Ghana achieve its NDC commitments by decarbonising the energy sector and reaching net-zero emissions by 2070 while ensuring socio-economic growth and using Ghana’s natural resources.

4. Ghana Energy Transition and Investment Plan.

This ambitious plan was built on Ghana’s Energy Transition Framework in 2023 to map out the country’s journey to achieve net-zero emissions by 2060 instead of the 2070 envisaged by the Energy Transition Framework. The plan aims to unlock approximately USD 550 billion in investment opportunities by 2060.

5. Sector-Specific Plans

Key sector strategies, including the Renewable Energy Master Plan which aims at increasing renewable energy in the national mix by 2030. The Ghana Civil Aviation Authority also aims at getting to net zero by 2050.

The Forestry sector also has a National REDD (Reducing Emmissions from Deforestation and Forest Degradation in Developing Countries) Strategy where every emission reduction is paid for by the World Bank.  Other specific sectors are also being updated to align with net-zero pathways. These plans provide direction on expected emissions trajectories and investment priorities.

 REGULATORY DEVELOPMENTS AFFECTING BUSINESSES

For businesses operating in Ghana, the regulatory environment is changing to reflect net-zero objectives. Major developments include:

1. Emissions Reporting and Monitoring

Regulations increasingly require companies, especially in high-emitting sectors to measure, report, and verify their greenhouse gas emissions. The Environmental Protection Authority, the primary body responsible for environmental regulation, monitoring, and enforcement has recently introduced the Ghana Online Continuous Emmission Monitoring System which is designed to track industrial emission in real time as they happen instead of relying on delayed results. This Monitoring system gives the pollution result as and when the industrial activity is going on to help the Authority manage regulation while improving compliance and accountability.

1. Energy Efficiency and Performance Standards

The Energy Commission is the body that is responsible for promoting energy efficiency and productive usage. New energy efficiency standards and performance requirements are being introduced for industrial equipment, buildings, and appliances. Companies are expected to comply with minimum energy performance thresholds to reduce energy intensity. Ghana introduced nineteen new Energy Efficiency Standards and Labelling Regulations for electrical appliances and renewable energy products in 2022 and 2023.

1. Carbon Pricing and Market Mechanisms

While Ghana has not yet fully implemented a formal carbon tax or emissions trading system, the new Environmental Protection Act 2025 (Act 1124) has established the Ghana Carbon Registry, the Carbon Market Committee and the Mitigation Fund. The Environmental Protection Authority has been designated as the national authority for Ghana’s carbon market.

There also is ongoing policy work toward carbon pricing mechanisms. Businesses should prepare for the introduction of levies or credits linked to emissions performance.

IMPLICATIONS FOR BUSINESSES

• From a legal standpoint, businesses face increasing compliance obligations arising from environmental permitting, energy regulation, and emerging climate-related requirements. The oversight functions of the Environmental Protection Authority and the Energy Commission mean that companies must ensure adherence to environmental standards, emissions controls, and energy efficiency directives. Non-compliance may result in penalties, project delays, or reputational harm, particularly for businesses operating in high-impact sectors.
• Operationally, the transition to a low-carbon economy requires adjustments in how businesses produce, source, and consume energy. Companies may need to adopt cleaner technologies, improve energy efficiency, and integrate renewable energy solutions into their operations.
• Financial implications are equally significant. While compliance may involve upfront costs, such as investment in energy-efficient equipment or emissions monitoring systems, there are also emerging opportunities. Businesses that align with sustainability goals may gain access to green financing, climate funds, and ESG-linked investment instruments. Conversely, companies that lag behind may face higher capital costs or reduced investor confidence as financial institutions increasingly incorporate climate risk into their decision-making.

INCENTIVES AND SUPPORT MEASURES FOR BUSINESSES

Policymakers have recognized that regulatory compliance alone is insufficient without enabling measures. Notable support mechanisms include:

1. Tax Incentives and Subsidies

Tax breaks and accelerated depreciation allowances for investments in renewable energy technologies, energy-efficient equipment, and low-carbon infrastructure have substantially reduced cost barriers. The Ghana Renewable Energy Fund for instance provides financial resources to support renewable energy projects. Also, a Renewable Energy and Green Transition Fund has recently been set up by the government to provide solar power, irrigation projects among others.

1. Access to Climate Finance

Ghana is tapping international climate finance, from bilateral partners, multilateral development banks, and green funds to support private sector decarbonization projects. Eligible businesses can access concessional financing for renewable projects, battery storage, and energy-efficiency upgrades. The Climate Finance Hub has been established in Ghana to provide essential resources, training and certifications for financial institutions and climate-smart enterprises.

1. Public-Private Partnerships

Strategic partnerships are emerging between government and the private sector to scale renewable energy deployment, e-mobility solutions, and carbon offset projects. For instance, Yinson Production Ghana, a private company in collaboration with the Kwame Nkrumah University of Science and Technology (KNUST) and the Petroleum Commission have commissioned the Net-Zero Carbon Emissions Lab (NCEL), dedicated to scientific carbon measurement, emission modelling and decarbonisation research.

BUSINESS STRATEGIES FOR NET-ZERO READINESS

1. Conducting Carbon and ESG Assessments

A critical first step toward net-zero readiness is understanding the company’s current environmental footprint. Businesses should undertake carbon audits to measure greenhouse gas emissions generated through operations, energy use, transportation, manufacturing processes, and supply chains. Similarly, Environmental, Social and Governance (ESG) assessments help organizations identify sustainability gaps, regulatory risks, and areas requiring improvement

2. Integrating Sustainability into Corporate Governance

Net-zero readiness should be embedded within the company’s governance structure rather than treated as a standalone compliance issue. Boards and senior management must play an active role in climate oversight, risk management, and sustainability decision-making.

3. Aligning Business Operations with National Climate Policies

Companies operating in Ghana must ensure that their operational strategies align with national climate initiatives such as Ghana’s Nationally Determined Contributions (NDCs), Energy Transition and Investment Plan (ETIP), and renewable energy policies.

Businesses in sectors such as energy, transport, manufacturing, mining and agriculture are particularly likely to face increasing regulatory obligations relating to emissions reduction, energy efficiency, and sustainability reporting. Aligning operations early with these policies helps businesses avoid future compliance risks and transition costs.

4. Investing in Renewable Energy and Energy Efficiency

Reducing dependence on fossil fuels remains central to achieving net-zero targets. Businesses can improve sustainability performance by transitioning to solar or other renewable energy sources; adopting energy-efficient equipment and technologies; improving waste management systems; and optimizing operational processes to reduce emissions.

5. Strengthening Climate-Related Reporting and Disclosure

Globally, climate disclosure requirements are becoming increasingly standardized and mandatory. Businesses should therefore begin developing transparent reporting systems capable of tracking emissions, sustainability performance, and climate-related financial risks.

6. Exploring Green Financing and Carbon Market Opportunities

The transition to a green economy presents significant financing opportunities for businesses that demonstrate sustainability commitments. Companies can explore green bonds; sustainability-linked loans; climate financing initiatives; public-private partnerships; and carbon credit or carbon trading opportunities.

1. CONCLUSION

Ghana’s journey toward net-zero is no longer a future aspiration; it is an unfolding economic and regulatory reality. As climate policies, emissions standards, and sustainability expectations continue to evolve, businesses must move beyond passive compliance and embrace sustainability as a core business strategy.

While the transition to a low-carbon economy presents regulatory and operational challenges, it also offers significant opportunities for innovation, investment, and competitive advantage. Businesses that act early by integrating ESG principles, adopting cleaner technologies, and aligning with national climate policies will be better positioned to succeed in Ghana’s emerging green economy.

Ultimately, the path to net-zero is not solely an environmental obligation; it is a business imperative that will shape the future of investment, growth, and resilience in Ghana.

The Author is an Associate at SUSTINERI ATTORNEYS PRUC (www.sustineriattorneys.com). Blessing specializes in Corporate and Commercial Practice, Energy Law, Environment, Social and Governance (ESG) and Dispute Resolution. She welcomes views on this article via [email protected]

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