New regulations have been introduced by the Ghana Stock Exchange (GSE) and Securities and Exchange Commission (SEC) to govern the listing and trading of green and sustainable bonds on the market.
The 32nd anniversary of the local bourse, which is being marked on the theme: “Investing into a green and sustainable future,” saw the launch of new regulations known as the “Green and Sustainable Bond Rules.”
Bonds designated as “green” promote either new or ongoing initiatives that will have a positive impact on the environment or the climate.
On the other hand, sustainable bonds provide funding for both new and ongoing projects that meet the sustainability standards in terms of both social and environmental advantages.
The European Investment Bank released the first green bond in 2007 under the name Climate Awareness Bond. The finance sector continues to be a crucial route for economies all over the world to have a genuine influence because of its role in effectively allocating money.
As a result, using the financial market is the most effective approach to fight climate change and still turn a profit.
Aliou Maiga, Regional Industry Director for Financial Institutions Group, Africa, International Finance Corporation (IFC), praised the GSE for demonstrating leadership in green and sustainability finance during his keynote talk during the event.
He claimed that climate funding was both a necessity for growth and a major market opportunity.
In order to encourage investments that lower greenhouse gas emissions and aid in climate change adaption, IFC is dedicated to engaging with Ghana’s stakeholders, he said.
Well timed
Rev. Daniel Ogbarmey Tetteh, Director General of the Securities and Exchange Commission, also spoke at the launch and emphasized the need of investing in a sustainable future.
He asserted that sustainability was a vast subject that was dependent on social, human, economic, and environmental pillars, all of which had to be taken into consideration.
For many business leaders, it is the most important challenge we are facing right now. However, there is proof that sustainability and a company’s long-term success are related.
According to him, opportunities to participate in businesses or assets with robust environmental, social, and governance (ESG) markets are in high demand worldwide.
Ekow Afedzie, the departing Managing Director of GSE, stated that sustainable bonds had gained popularity throughout the world because of the significant advantages they provided to the environment and society as a whole.
According to him, the GSE had a long history of dedication to environmental activities, which culminated in its July admission to the UN Sustainable Exchanges.
He pointed out that the publication of the ESG Disclosure Manual Guidelines in November of this year was further evidence of the company’s dedication to this sustainable endeavor.
“Today’s announcement of green and sustainable bond regulations marks another significant development in our sustainability path. According to him, listed companies in Ghana can now make use of these rapidly expanding bond investment products to raise money for ESG activities.
Deep liquid markets
“At FSD Africa, we envision the growth of capital markets to an end to boost income and job creation, access to basic services, and building of sustainable futures,” stated Senior Financial Markets Specialist Victor Nkiiri in a message of goodwill.
According to him, highly liquid markets are essential for economic growth because they allow an economy put its longer-term domestic reserves to its best use.