In his recent State of the Nations Address, President John Dramani Mahama, highlighted his vision on environment and climate Change. The address outlined a well-thought-out and ambitious plan that projects a green future for Ghana, if it can be taken beyond mere words. This article critically examines the President’s plans on the environment and makes a strong case for embedding the Polluter Pays Principle (PPP) as the rock floor of Ghana’s Environmental governance.
The president aptly acknowledged the damming effects of illegal mining, popularly known in the Ghanaian context as “galamsey”, on Ghana’s forest and water bodies and made a public commitment to climate action, which is essential for achieving Sustainability.
He proposed a layered approach, which includes Regulatory Reforms and the institution of the Gold Board, economic diversification, financing climate action, and public sensitization, among others. These plans are commendable, but adding a strategic layer of the Principle of Polluter Pays in these plans would project a greener future for Ghana.
The famous author, Nicholas De SadeLeer in his book, “Environmental Principles- from Political Slogans to Rules”, explains The PPP as an economic rule of cost allocation which requires the polluter to take responsibility for the cost arising from his pollution. It is founded on two distinct rationales: an economic theory and notions of justice. Environmental law expert Beyerlin posits that the principle “calls for ensuring that in every case where the environment has been or runs the risk of being polluted, the person accountable bears the cost resulting from the pollution or measures taken for the purpose of preventing pollution”.
In the paragraphs that follow, we critically consider the plans of the president on the environment and climate Change and make a case for integrating the PPP into the plan to achieve Environmental Justice and Sustainability in Ghana.
Strengthening law enforcement through the polluters-pay principle
One of the president’s strategies is the use of a robust and impartial law enforcement mechanism as a means of combating illegal mining. Admittedly, this holds significant value but must be complemented with a well-defined system of environmental liability where mining entities, both legal and illegal, are held accountable for the damage they cause in their mining activities.
In order to ensure ease of compliance, it is suggested that the mandatory Financial Security System, which requires mining companies and operators to obtain a financial guarantee from a designated financial institution before commencing mining activities, be strengthened through stricter enforcement and broader financial security measures. This would ensure the availability of funds from mining companies that pollute the environment for the restoration of the environment and payment of compensations to victims of environmental pollution, thus ensuring that polluters are held accountable.
The International Council on Mining and Metals (ICMM) 2021 has affirmed the need for financial assurance regulations and opines that without the same, governments will have to bear the risk of significant costs. Similarly, Wambwa et al, 2023 have intimated that by requiring mining companies to provide financial guarantees such as bonds or financial deposits, financial assurance programs ensure that funds are available to cover the costs of environmental rehabilitation.
It is, therefore, submitted that the financial security system,m when well integrated and strictly enforced in the Ghanaian environmental space in the form of PPP, could serve as a guide for responsible mining, as miners may not be readily willing to sacrifice their security. It will also make funds readily available to the government for green restoration.
A sub-layer to the success of the financial security system is a strict regulation and a more transparent and accountable system that requires funds encashed from financial securities to be directly and timely allocated to ecological restoration in the community concerned. This would reinforce accountability and send a wide signal to all the players that environmental damage is not only an illicit act but a costly one.
Integrating PPP into the gold board and regulatory framework
The proposal to establish a Gold Board with a mandate to oversee governance in the gold mining sector is not only a positive delight but also an emphatic method of crashing out the evil in what has become an urgent crisis substrata of the economy. A well-crafted PPP would significantly enhance the effectiveness of the board if incorporated in their modus.
A mining pollution levy in the form of PPP must be strictly enforced. This suggestion is on the basis of the assumption that every mining comes with an automatic pollution, and therefore, a mining pollution levy is a benchmark levy imposed on all miners for their perceived pollution. This levy must be strictly used to fund both the ‘Tree for Life’ Restoration Policy and ‘the Blue Water Initiative’ proposed by the President; his main initiatives for the purification of water bodies and reforestation respectively.
It is suggested that the Gold Board must have a dedicated sub-committee in charge of the mining pollution levy, which must have a direct link with both the ‘Tree for Life Restoration’ and ‘Blue Water Initiative’ task force to ensure a proper coordination.
The president’s policy proposal for the segmentation of mining activities into small, medium, and large-scale operations is appetizing and can be properly fit in the author’s proposal for a mining pollution levy. The levy must be in a graduated form, where miners with a higher ecological footprint are made to pay proportionally higher fees.
It is the author’s opinion that the government must create a coherent and well-coordinated framework to integrate the mining pollution levy with existing mining taxes and climate financing mechanisms to prevent regulatory overlap and double taxation. Though miners must pay for environmental restoration based on the PPP, they must not be unduly burdened by duplicative levies. Thus a structured approach to climate finance in the mining sector will promote both sustainability and economic viability by balancing environmental accountability with a competitive mining industry.
Financing climate action through PPP
The president’s commitment to carbon reduction in conformity with Article 6 of the Paris Agreement is the right step forward. The announcement that Ghana has allocated 24 million metric tonnes of its carbon budget to meet her climate mitigation target and has successfully authorized three projects that are poised to reduce 5.2 million tonnes of carbon emissions cannot be overlooked without a pat on the back.
These are surely bold and positive steps in climate leadership, but further leveraging on PPP could unlock additional resources for Climate adaptation. The allocation of 24 million metric tonnes of Ghana’s carbon budget should be coupled with financial penalties for local industries exceeding their allocated emissions to create an incentive for compliance.
Furthermore, carbon pricing mechanisms, such as a Carbon Tax or an Emissions Trading System, are the cheapest ways of reducing CO2 emissions, as opined by the Organization for Economic Cooperation and Development (OECD). The OECD further posits that carbon pricing mechanism should be at the center of any government’s efforts in tackling climate change.
The Emissions Levy Act of Ghana 2023 (Act 1112) has PPP embodied in it as a way of financing climate activities. However, strictly construed, the Act is meant to raise revenue for government business rather than contribute to the reduction of emissions. The Act lacks clear provisions for transitioning individuals, businesses and industries away from carbon-intensive practices or incentivizing clean energy alternatives.
Also, there is no clear policy of investing the returns from the levy in climate sustainability activities, as has successfully been done by Sweden and France. Accordingly, deliberate efforts should be made by the government to project policies that would provide alternatives to carbon emissions and also reinvest returns from the levies to climate sustainability activities. This way, Ghana can secure sustainable revenue streams to fund long-term environmental and climate resilience through PPP while reducing emissions.
Aligning economic diversification with PPP
The president rightly outlined salt production, lithium extraction, and integrated aluminum and iron industries as potential avenues for economic expansion under the AFCFTA. This new economic diversification remains impotent if the past environmental pitfalls of extractive industries are repeated. To this extent, the author proposes an Eco Justice Reparation Fund to address potential degradation.
The sector players must be obliged under a carefully modeled PPP to contribute to the fund in different ways. There must be a benchmark expected degradation for which all players must pay for before commencing extraction. Degradation beyond the capped benchmark or threshold must be subjected to a stricter defined penalty also to be paid into the fund. This would reinforce sustainable industrial practices while ensuring that environmental restoration costs are borne by the real culprits. It is important, however, that the fund must be used strictly for restoration.
5.Public sensitization and the role of PPP
The president’s quest to use Public Sensitization to preserve nature is critical for fostering environmental consciousness. However, the sensitization must be reinforced by economic incentives, disincentives and community-driven enforcement mechanism
The author suggests a community-based pollution reporting system which allows citizens to report all environmental pollution issues through a designated channel. Fines collected through this reporting system must be used for local environmental restoration and reward for volunteer communities.
Reward mechanisms for communities that actively participate in conservation efforts, financed through PPP-based revenues, would enhance grassroots engagement. It is suggested that a clear nexus should be created between government and local and traditional authorities to enforce penalties and ensure compliance. This would enhance community ownership of environmental governance.
Conclusion
The government’s policies on the environment, as identified by the President, establish a strong groundwork for meaningful progress and transformation, but to truly cement Ghana’s leadership in sustainability, the Polluter-Pays Principle must be fully integrated into every aspect of Environment policy implementation.
This article offers the country a possibility to establish Ghana as a pioneer in Climate Change Mitigation. By putting these recommendations into practice, Ghana would establish a strong legal and policy framework that assures responsibility, enforcement and compliance while tackling Environmental concerns.
Let us elevate our efforts beyond simply combating illegal mining and environmental degradation. Let us solidify a well-structured institutional and governance framework where Polluters Pay and Protectors Prosper. This is the future Ghana deserves.
