Energy Ministry Estimates $500 Billion Cost for Ghana to Achieve Net-Zero Economy by 2070

The Ministry of Energy has revealed that Ghana requires approximately $500 billion to successfully transition to a net-zero economy by 2070. Speaking at a national climate change conference organized by ActionAid Ghana in Accra, Seth Mahu, Technical Advisor to the Minister of Energy and Green Transition, emphasized that achieving this ambitious target necessitates unprecedented collaboration between the government, financial institutions, the private sector, and civil society. The roadmap outlines a phased approach to increasing renewable energy capacity, targeting a 10% share of the national energy mix by 2030, with a further increase to 20% by 2070.

Currently, Ghana’s renewable energy capacity stands at 342.5 MW, representing about 6% of the national energy mix. To bridge the gap, the government is advocating for a transition that extends beyond the power sector to include agriculture, water, and transportation. Mr. Mahu stressed the importance of equitable policies to ensure that the shift to green energy does not leave vulnerable populations behind. This multi-sectoral approach is designed to align with global climate goals while addressing local economic realities and infrastructure needs.

Industry experts and civil society leaders have underscored the urgency of creating sustainable funding mechanisms and clear policy frameworks to support this transition. Dr. Charles Ofori from the Africa Centre for Energy Policy (ACEP) highlighted the necessity of an economy-wide strategy rather than isolated sectoral plans. Similarly, John Nkaw, Country Director for ActionAid Ghana, called for transparent policy recommendations and reliable financing to ensure the roadmap remains viable. As the administration under President John Mahama continues to navigate the complexities of energy security and climate change, the success of this $500 billion transition will depend heavily on the country’s ability to attract international investment and foster domestic innovation.