GHANA Trends and Developments Contributed by: Adelaide Benneh Prempeh, Michelle Nana Yaa Essuman, David William Akuoko-Nyantakyi and Audrey Nana Oye Addy, B&P Associates
are also to define the indicators that quantify the expected impacts of green bond-financed projects and disclose any changes to impact measurement indicators to bondholders and the public, explaining the reasons, and provid - ing a 12-month transition period where previous indicators are still reported. Additionally, envi - ronmental impact information may be indepen - dently reviewed and confirmed by an expert. Communication and reporting At the time of issuance and throughout the lifes - pan of the green bonds, issuers must provide information on the procedures for evaluating, selecting and monitoring projects; allocation of the funds raised; and external evaluation report about these procedures to the public on their website and upon request. They are also to publish an updated list of projects financed or refinanced annually or upon any significant developments. This list must indicate the pro - ject descriptions, amounts allocated, expected environmental impacts, and any unused balance of each project. Issuers are to disclose in their annual report to the Commission, bondholders, and the securities exchange on which they are listed, the environmental impact achieved by project, by category, and on an overall basis. The Guidelines also require consistency in that all information published remains comparable over time by maintaining the same indicators in each report. Penalty In the event an individual does not adhere to the Guidelines, the SEC may refuse to renew their licence; revoke or suspend their licence; or impose sanctions such as reprimands, disquali - fication, or administrative penalties. The SEC
may take any other necessary action to protect investors and uphold the integrity of the securi - ties market. Criminal proceedings may also be initiated against issuers if they fail to make pay - ment within 14 days of a demand being made. Unlocking opportunities for stakeholders The adoption of the SEC Green Bond Guidelines holds significant promise for Ghana’s economy. As climate finance becomes an integral part of global investment strategies, Ghana’s ability to issue green bonds positions it as an attractive destination for environmentally conscious inves - tors. The issuance of green bonds in line with the Guidelines can lead to improved reputation and credibility for businesses, as consumers and investors are increasingly favouring companies with strong environmental, social and govern - ance (ESG) practices. Conclusion The SEC’s Green Bond Guidelines represent a defining moment in Ghana’s securities industry, introducing a sustainable financing option that aligns with both local and global environmental goals. By embracing green bonds, Ghana is pav - ing the way for a future where economic growth and environmental consciousness go hand-in- hand. The Guidelines do not only encourage investment in green projects and promote sus - tainable finance, but they also promise substan - tial benefits to Ghana’s economy, positioning the country as a leader in the region for responsible, sustainable investment. Green bonds and other sustainability-linked bonds are poised to transform Ghana’s invest - ment sector, offering new pathways to prosperity for businesses and investors.
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