Ghana signed a five-year agreement with the World Bank to reduce carbon emissions from deforestation and forest degradation, the bank said on Tuesday.
The agreement between Ghana, which has one of the highest deforestation rates in Africa, and the Forest Carbon Partnership Facility Carbon Fund, administered by the World Bank, includes results-based payments of up to US$50 million for reductions of 10 million tons of carbon emissions.
Forest degradation and deforestation in the country is driven primarily by cocoa farm expansion, logging and a recent increase in illegal mining.
The program aims to reduce emissions by promoting climate-smart cocoa production.
Ghana is the third country to sign such a deal, following those of Mozambique and the Democratic Republic of Congo in February this year.
By Zeynep Beyza Kilic