1 | P a g e
UNIVERSITY OF PROFESSIONAL STUDIES, ACCRA (UPSA)
SCHOOL OF GRADUATE STUDIES (SOGS)
BOYE NII LANTEY WILLIAMS - 10031236
PROGRAMME: MBA PETROLEUM ACCOUNTING AND FINANCE
COURSE: MBAP618: CORPORATE GOVERNANCE AND NATURAL
RESOURCES MANAGEMENT
LECTURER: DR. ERNEST ABRAHAM MENSAH
TOPIC: THE RELATIONSHIP BETWEEN CLIMATE CHANGE AND ENERGY;
THE CASE OF GHANA. DISCUSS.
2 | P a g e
INTRODUCTION
Climate change is the gradual, long-term alteration of worldwide weather patterns, especially
increases in temperature and storm activity, attributable to the increased accumulation of
greenhouse gases in the atmosphere. This increases the temperature of the earth and carries
with it a series of repercussions for the environment. The earth’s atmospheric temperature is
maintained by greenhouse gases, whose duty is to form an insulating blanket around the earth
and regulate the amount of solar radiation that stays in its atmosphere. Chief among these gases
are water vapour (most abundant), carbon dioxide (CO2), methane (CH4) and nitrous oxide
(N2O). These occur naturally. Human-made additions include chlorofluorocarbons (CFCs),
hydro chlorofluorocarbons (HCFCs) and hydrofluorocarbons (HFCs). Nitrogen (78%) and
oxygen (21%) are the two most abundant gases of the earth’s atmospheric cover by volume
percent but have properties that restrict infrared absorption. The greenhouse gases that make
up less than a percentage of the earth’s atmospheric composition are the culprits in global
warming. The role of greenhouse gases is profound. The sun is the primary source of heat to
the earth. The solar spectrum is a collection of radiant energy forms that are partly absorbed by
the earth. X-ray, infrared, gamma, visible light and ultraviolet radiation all are emitted from
the sun.
THE CONTRIBUTION OF CO2 TO CLIMATE CHANGE
Since the Industrial revolution began, humans have consistently taken stored carbon out of the
earth to power huge and energy–demanding machines that have thus far driven modernisation.
These have come in the form of coal, petroleum (crude oil) and natural gas being burnt to make
carbon dioxide, heat, water vapour, and smaller amounts of sulphur dioxide and others gases.
The prime cause of the release of carbon dioxide to the atmosphere is most probably the burning
3 | P a g e
of these fuels. The fact cannot be overlooked also that deforestation through bush burning is a
major contributor to the increasing CO2 concentration in the atmosphere. Massive deforestation
has cut out the ability of forests to regenerate at any meaningful rate. The loss of vegetative
cover in such alarming proportions means that the amount of carbon dioxide that would have
been taken up by plants in their photosynthetic cycle remains in the atmosphere. The amount
of oxygen that would have been produced as a by-product of photosynthesis to renew the
existing stock and vitalise the survival of oxygen-breathing microorganisms is lost. The
increasing accumulation of CO2 gives rise to an increased trapping of the solar heat that warms
the earth and constitutes global warming. Rainwater normally trapped by forests is now left on
rampage and is causing more floods around the world. It is estimated that Ghana is depleting
its remaining forest cover at a rate of 62,000 hectares per annum and the annual forest depletion
is quantified to be 3% of GDP.
GHANA’S SITUATION AND POSITION
According to the National Coordinator of Climate change, Mr. W.K. Agyeman Bonsu, at the
inception meeting of the Netherlands Climate Change Studies Assistance Program held at Erata
Hotel, Accra, from the 21st -24th April 2004, Ghana is a net greenhouse sink with a per capita
removal capacity of -2. 3×10-4Gg carbon dioxide (CO2) equivalent. However, the sink reduced
by 400% between 1990 and 1996 due to human activities of burning of forest cover for farming,
settlement, mining and grazing. Increased indulgence in fuel wood use and charcoal making,
minimal replacement of depleted forest cover and an exploding population which decreases the
fallow period of vegetation have all come to bear on the country’s reduced capacity to sink.
In truth, Ghana has suffered immensely from the implications of a changing global climate
especially in the areas of agriculture, water resources, energy, forest cover and climate-induced
natural disasters. As a signatory to the Kyoto Protocol, it is incumbent on Ghana to control her
4 | P a g e
own volume of greenhouse emission in a balanced drive to industrialise. Ghana is particularly
vulnerable to Climate Change due to lack of capacity to undertake adaptive measures to address
environmental problems and socio-economic costs. These include climate change associated
health systems, flooding of coastal areas which are already undergoing erosion, and low
operating water level of the Akosombo hydropower-generating dam in the country which used
to produce 80% of national electricity supply, as a result of reduced levels of precipitation.
Water resources in Ghana are vital for socio-economic development. Impacts of climate change
on the water resource have put the country at risk. Hydropower generation have seriously been
affected by climate change. The energy sector is currently the largest emitter of greenhouse
gases (GHG).
CLIMATE CHANGE IN GHANA
Historical data for Ghana from the year 1961 to 2000 clearly shows a progressive rise in
temperature and decrease in mean annual rainfall in all the six agro-ecological zones in the
country. Climate change is manifested in Ghana through: rising temperatures, declining rainfall
totals and increased variability, rising sea levels and high incidence of weather extremes and
disasters. The average annual temperature has increased 1°C in the last 30 years. It is estimated
that temperature will continue to rise, while rainfall is also predicted to decrease in all agro-
ecological zones in the coming years.
EFFECTS OF CLIMATE CHANGE ON ENERGY SYSTEMS IN GHANA
The energy sector is facing increasing pressures from climate change. All segments of the
industry will be affected by the changing global climate and the policy responses to it. So says
a briefing published jointly by the World Energy Council (WEC), the University of Cambridge
Institute for Sustainability Leadership (CISL), the Cambridge Judge Business School, and the
5 | P a g e
European Climate Foundation. And to this, Ghana is not an exception. The energy sector is
vulnerable to the effects of climate change in several ways, as many different aspects of the
energy industry are directly affected by environmental and climatic conditions. Some of these
interactions are described below:
• Seasonal and daily temperatures and precipitation changes affect the timing of peak
electricity demands and the size of these peaks;
• Extended periods of drought lead to reduced water availability for hydropower
generation in the case of the Akosombo and Bui Dams;
• Changes in temperature and precipitation affect water availability for cooling power
generators;
• Changes in cloud cover, temperature and pressure patterns directly affect wind and solar
resources (affecting resource availability or productivity);
• Increased intensity and frequency of severe weather events impacts on energy
infrastructure, for instance power plants, transmission lines, refineries, oil and gas
drilling platforms, pipelines and power lines in and around Ghana and the West African
sub-region. These weather-related supply disruptions result in higher energy prices;
• Increased intensity and frequency of severe weather events impact design and safety
requirements of future energy infrastructure and other capital investments;
• Increased occurrence of blackouts may be observed as a result of higher electricity
demand for cooling and refrigeration caused by higher temperatures in Ghana.
CONCLUSIONS
Climate change is increasingly being recognized by society as an ongoing phenomenon that
whether human induced or not, has an impact on people’s livelihoods. Changes in climate can
significantly sharpen energy investment risks, with a potential cost that can reach up to
6 | P a g e
hundreds of billions of dollars per year in Ghana. In addition to the well-known temperature
projections, climate models suggest changes in a wide range of climate variables including
precipitation, humidity, wind speed and cloudiness. With conventional and renewable
technologies inherently reliant on climate, changes will result among other things in:
• Altering availability of natural energy resources;
• Changes in the quantity and timing of renewable resource extraction potential;
• Changes in operational performance of energy production systems.
Renewable energy facilities are generally designed and emplaced based on historical climate
data or to suit prevailing climate conditions, without the consideration of future climate change
in feasibility studies. If key energy stakeholders are not aware of climate change implications
to the productivity, or even the viability of energy production systems, the ability of Ghana to
supply reliable and affordable energy to meet demand may be at serious risk. Impacts on key
energy resources, substantially impact the cost competitiveness of these technologies due to
changes in resource availability or variability, and may even impede the planning and financing
of new projects. Based on these premises, the impact of climate change on the energy sector in
Ghana may be deemed serious.
RECOMMENDATIONS:
For governments:
• Assess climate change interventions critically from a gender lens and a youth
perspective to ensure equity.
• Moving from the traditional biomass type of fuel to gas must be enforced by the
government through various legislations.
7 | P a g e
• Provide deliberate decision making spaces for young people to contribute to the
processes of fighting climate change.
• Consider how employment opportunities can be generated for young people through
initiatives such as green economy and sanitation management.
• Reposition itself towards assessing funding opportunities in dealing with climate
change
For civil society organisations working on climate change:
• Include gender analysis and youth inclusion at all levels in research, policy formation
and advocacy for climate solutions.
• Seek to work in alliance with relevant institutions to ensure that results-oriented
adaptation and mitigation mechanisms are effectively and efficiently planned and
executed.
• Advocate positive behavioural change among citizens that leads to environmental
sustainability.
For private sector:
• Set up systems that promote climate consideration in some development or project work
such as construction of facilities or financing businesses that promote clean
environment.
• Cooperate with youth groups in the informal sector to improve young people’s capacity
to plan and implement activities or projects that sustain the environment.
• Invest in capacity building and awareness for customers and other associates to increase
environmental-friendly practices among them
8 | P a g e
REFERENCES:
Adenikinju, A. (2008). West Africa Energy Security Report. Accra, Abuja: University of Ibadan
and Center for Energy Economics at the University of Texas at Austin.
Adom-Opare, K. B. (2012). Energy Security and Climate Change Adaptation in Rural
Communities. Kumasi, Ghana: KNUST.
Amin, A. Z. (2015). Energy Revolution: 100% Renewable Energy for All. GreenPeace
Network.
Bhushan, C. (2014). Global energy politics. Paris, France: IEA.
Casertano, S. (2013). The New Geopolitics of Energy Resources: Global Energy Politics and
Supply Security. Rudolf-Breitscheid-Str. 178, 14482 Potsdam: Brandenburg Institute
for SOCIETY and SECURITY.
Committee, N. C. (2010). Ghana Goes for Green Growth; National engagement on climate
change. Accra, Ghana: Climate and Development Knowledge Network (CDKN).
Energy Commission, G. (2010-2013). National Energy Statistics. Accra, Ghana: Energy
Commission.
Energy Commission, G. (2014). Energy Outlook for Ghana. Accra, Ghana: Energy Comission.
Energy Commission, G. (2015). Energy Outlook for Ghana. Accra, Ghana: Energy
Commission.
EPA. (2011). Ghana's Second National Communication to the United Nations Framework
Convention on Climate Change. Accra, Ghana: EPA.
Ezekiel, C. S. (March 2015). National Climate Change Policy (NCCP) of Ghana. Accra,
Ghana: Chibeze S. Ezekiel.
Gert Jan Kramer & Bram Vermeer. (2015). The Colours of Energy: Essays on the future of
energy in Society. London: Royal Dutch Shell Plc.
Goldthau, A. (2013). The Handbook of Global Energy Policy. New Delhi, India: John Wiley
& Sons Ltd.
IEA. (2013). Climate Change in Ghana: Impact on Agriculture and the Policy Implications.
Ghana Policy Journal, Volume 5.
Institute of Energy Economics, J. (2007). A Quest for Energy Security in the 21st Century:
Resources and Constraints. Japan: Asia Pacific Energy Research Centre.
International Energy Agency, I. (2014). Africa Energy Outlook: A Focus on Energy Prospects
in Sub-Saharan Africa. Paris, France: International Energy Agency, IEA.
9 | P a g e
Kurt M. Campbell & Jonathan Price. (2008). The Global Politics of Energy. Washington, DC
20036: The Aspen Institute.
Nurse, R. J. (2015). Climate Change: Evidences and Causes. USA: The Royal Society.
UNEP and UNDP. (2014). National Climate Change Adaptation Strategy (NCCAS). Accra,
Ghana: UNEP/UNDP.

THE RELATIONSHIP BETWEEN CLIMATE CHANGE AND ENERGY; THE CASE OF GHANA. DISCUSS.

  • 1.
    1 | Pa g e UNIVERSITY OF PROFESSIONAL STUDIES, ACCRA (UPSA) SCHOOL OF GRADUATE STUDIES (SOGS) BOYE NII LANTEY WILLIAMS - 10031236 PROGRAMME: MBA PETROLEUM ACCOUNTING AND FINANCE COURSE: MBAP618: CORPORATE GOVERNANCE AND NATURAL RESOURCES MANAGEMENT LECTURER: DR. ERNEST ABRAHAM MENSAH TOPIC: THE RELATIONSHIP BETWEEN CLIMATE CHANGE AND ENERGY; THE CASE OF GHANA. DISCUSS.
  • 2.
    2 | Pa g e INTRODUCTION Climate change is the gradual, long-term alteration of worldwide weather patterns, especially increases in temperature and storm activity, attributable to the increased accumulation of greenhouse gases in the atmosphere. This increases the temperature of the earth and carries with it a series of repercussions for the environment. The earth’s atmospheric temperature is maintained by greenhouse gases, whose duty is to form an insulating blanket around the earth and regulate the amount of solar radiation that stays in its atmosphere. Chief among these gases are water vapour (most abundant), carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). These occur naturally. Human-made additions include chlorofluorocarbons (CFCs), hydro chlorofluorocarbons (HCFCs) and hydrofluorocarbons (HFCs). Nitrogen (78%) and oxygen (21%) are the two most abundant gases of the earth’s atmospheric cover by volume percent but have properties that restrict infrared absorption. The greenhouse gases that make up less than a percentage of the earth’s atmospheric composition are the culprits in global warming. The role of greenhouse gases is profound. The sun is the primary source of heat to the earth. The solar spectrum is a collection of radiant energy forms that are partly absorbed by the earth. X-ray, infrared, gamma, visible light and ultraviolet radiation all are emitted from the sun. THE CONTRIBUTION OF CO2 TO CLIMATE CHANGE Since the Industrial revolution began, humans have consistently taken stored carbon out of the earth to power huge and energy–demanding machines that have thus far driven modernisation. These have come in the form of coal, petroleum (crude oil) and natural gas being burnt to make carbon dioxide, heat, water vapour, and smaller amounts of sulphur dioxide and others gases. The prime cause of the release of carbon dioxide to the atmosphere is most probably the burning
  • 3.
    3 | Pa g e of these fuels. The fact cannot be overlooked also that deforestation through bush burning is a major contributor to the increasing CO2 concentration in the atmosphere. Massive deforestation has cut out the ability of forests to regenerate at any meaningful rate. The loss of vegetative cover in such alarming proportions means that the amount of carbon dioxide that would have been taken up by plants in their photosynthetic cycle remains in the atmosphere. The amount of oxygen that would have been produced as a by-product of photosynthesis to renew the existing stock and vitalise the survival of oxygen-breathing microorganisms is lost. The increasing accumulation of CO2 gives rise to an increased trapping of the solar heat that warms the earth and constitutes global warming. Rainwater normally trapped by forests is now left on rampage and is causing more floods around the world. It is estimated that Ghana is depleting its remaining forest cover at a rate of 62,000 hectares per annum and the annual forest depletion is quantified to be 3% of GDP. GHANA’S SITUATION AND POSITION According to the National Coordinator of Climate change, Mr. W.K. Agyeman Bonsu, at the inception meeting of the Netherlands Climate Change Studies Assistance Program held at Erata Hotel, Accra, from the 21st -24th April 2004, Ghana is a net greenhouse sink with a per capita removal capacity of -2. 3×10-4Gg carbon dioxide (CO2) equivalent. However, the sink reduced by 400% between 1990 and 1996 due to human activities of burning of forest cover for farming, settlement, mining and grazing. Increased indulgence in fuel wood use and charcoal making, minimal replacement of depleted forest cover and an exploding population which decreases the fallow period of vegetation have all come to bear on the country’s reduced capacity to sink. In truth, Ghana has suffered immensely from the implications of a changing global climate especially in the areas of agriculture, water resources, energy, forest cover and climate-induced natural disasters. As a signatory to the Kyoto Protocol, it is incumbent on Ghana to control her
  • 4.
    4 | Pa g e own volume of greenhouse emission in a balanced drive to industrialise. Ghana is particularly vulnerable to Climate Change due to lack of capacity to undertake adaptive measures to address environmental problems and socio-economic costs. These include climate change associated health systems, flooding of coastal areas which are already undergoing erosion, and low operating water level of the Akosombo hydropower-generating dam in the country which used to produce 80% of national electricity supply, as a result of reduced levels of precipitation. Water resources in Ghana are vital for socio-economic development. Impacts of climate change on the water resource have put the country at risk. Hydropower generation have seriously been affected by climate change. The energy sector is currently the largest emitter of greenhouse gases (GHG). CLIMATE CHANGE IN GHANA Historical data for Ghana from the year 1961 to 2000 clearly shows a progressive rise in temperature and decrease in mean annual rainfall in all the six agro-ecological zones in the country. Climate change is manifested in Ghana through: rising temperatures, declining rainfall totals and increased variability, rising sea levels and high incidence of weather extremes and disasters. The average annual temperature has increased 1°C in the last 30 years. It is estimated that temperature will continue to rise, while rainfall is also predicted to decrease in all agro- ecological zones in the coming years. EFFECTS OF CLIMATE CHANGE ON ENERGY SYSTEMS IN GHANA The energy sector is facing increasing pressures from climate change. All segments of the industry will be affected by the changing global climate and the policy responses to it. So says a briefing published jointly by the World Energy Council (WEC), the University of Cambridge Institute for Sustainability Leadership (CISL), the Cambridge Judge Business School, and the
  • 5.
    5 | Pa g e European Climate Foundation. And to this, Ghana is not an exception. The energy sector is vulnerable to the effects of climate change in several ways, as many different aspects of the energy industry are directly affected by environmental and climatic conditions. Some of these interactions are described below: • Seasonal and daily temperatures and precipitation changes affect the timing of peak electricity demands and the size of these peaks; • Extended periods of drought lead to reduced water availability for hydropower generation in the case of the Akosombo and Bui Dams; • Changes in temperature and precipitation affect water availability for cooling power generators; • Changes in cloud cover, temperature and pressure patterns directly affect wind and solar resources (affecting resource availability or productivity); • Increased intensity and frequency of severe weather events impacts on energy infrastructure, for instance power plants, transmission lines, refineries, oil and gas drilling platforms, pipelines and power lines in and around Ghana and the West African sub-region. These weather-related supply disruptions result in higher energy prices; • Increased intensity and frequency of severe weather events impact design and safety requirements of future energy infrastructure and other capital investments; • Increased occurrence of blackouts may be observed as a result of higher electricity demand for cooling and refrigeration caused by higher temperatures in Ghana. CONCLUSIONS Climate change is increasingly being recognized by society as an ongoing phenomenon that whether human induced or not, has an impact on people’s livelihoods. Changes in climate can significantly sharpen energy investment risks, with a potential cost that can reach up to
  • 6.
    6 | Pa g e hundreds of billions of dollars per year in Ghana. In addition to the well-known temperature projections, climate models suggest changes in a wide range of climate variables including precipitation, humidity, wind speed and cloudiness. With conventional and renewable technologies inherently reliant on climate, changes will result among other things in: • Altering availability of natural energy resources; • Changes in the quantity and timing of renewable resource extraction potential; • Changes in operational performance of energy production systems. Renewable energy facilities are generally designed and emplaced based on historical climate data or to suit prevailing climate conditions, without the consideration of future climate change in feasibility studies. If key energy stakeholders are not aware of climate change implications to the productivity, or even the viability of energy production systems, the ability of Ghana to supply reliable and affordable energy to meet demand may be at serious risk. Impacts on key energy resources, substantially impact the cost competitiveness of these technologies due to changes in resource availability or variability, and may even impede the planning and financing of new projects. Based on these premises, the impact of climate change on the energy sector in Ghana may be deemed serious. RECOMMENDATIONS: For governments: • Assess climate change interventions critically from a gender lens and a youth perspective to ensure equity. • Moving from the traditional biomass type of fuel to gas must be enforced by the government through various legislations.
  • 7.
    7 | Pa g e • Provide deliberate decision making spaces for young people to contribute to the processes of fighting climate change. • Consider how employment opportunities can be generated for young people through initiatives such as green economy and sanitation management. • Reposition itself towards assessing funding opportunities in dealing with climate change For civil society organisations working on climate change: • Include gender analysis and youth inclusion at all levels in research, policy formation and advocacy for climate solutions. • Seek to work in alliance with relevant institutions to ensure that results-oriented adaptation and mitigation mechanisms are effectively and efficiently planned and executed. • Advocate positive behavioural change among citizens that leads to environmental sustainability. For private sector: • Set up systems that promote climate consideration in some development or project work such as construction of facilities or financing businesses that promote clean environment. • Cooperate with youth groups in the informal sector to improve young people’s capacity to plan and implement activities or projects that sustain the environment. • Invest in capacity building and awareness for customers and other associates to increase environmental-friendly practices among them
  • 8.
    8 | Pa g e REFERENCES: Adenikinju, A. (2008). West Africa Energy Security Report. Accra, Abuja: University of Ibadan and Center for Energy Economics at the University of Texas at Austin. Adom-Opare, K. B. (2012). Energy Security and Climate Change Adaptation in Rural Communities. Kumasi, Ghana: KNUST. Amin, A. Z. (2015). Energy Revolution: 100% Renewable Energy for All. GreenPeace Network. Bhushan, C. (2014). Global energy politics. Paris, France: IEA. Casertano, S. (2013). The New Geopolitics of Energy Resources: Global Energy Politics and Supply Security. Rudolf-Breitscheid-Str. 178, 14482 Potsdam: Brandenburg Institute for SOCIETY and SECURITY. Committee, N. C. (2010). Ghana Goes for Green Growth; National engagement on climate change. Accra, Ghana: Climate and Development Knowledge Network (CDKN). Energy Commission, G. (2010-2013). National Energy Statistics. Accra, Ghana: Energy Commission. Energy Commission, G. (2014). Energy Outlook for Ghana. Accra, Ghana: Energy Comission. Energy Commission, G. (2015). Energy Outlook for Ghana. Accra, Ghana: Energy Commission. EPA. (2011). Ghana's Second National Communication to the United Nations Framework Convention on Climate Change. Accra, Ghana: EPA. Ezekiel, C. S. (March 2015). National Climate Change Policy (NCCP) of Ghana. Accra, Ghana: Chibeze S. Ezekiel. Gert Jan Kramer & Bram Vermeer. (2015). The Colours of Energy: Essays on the future of energy in Society. London: Royal Dutch Shell Plc. Goldthau, A. (2013). The Handbook of Global Energy Policy. New Delhi, India: John Wiley & Sons Ltd. IEA. (2013). Climate Change in Ghana: Impact on Agriculture and the Policy Implications. Ghana Policy Journal, Volume 5. Institute of Energy Economics, J. (2007). A Quest for Energy Security in the 21st Century: Resources and Constraints. Japan: Asia Pacific Energy Research Centre. International Energy Agency, I. (2014). Africa Energy Outlook: A Focus on Energy Prospects in Sub-Saharan Africa. Paris, France: International Energy Agency, IEA.
  • 9.
    9 | Pa g e Kurt M. Campbell & Jonathan Price. (2008). The Global Politics of Energy. Washington, DC 20036: The Aspen Institute. Nurse, R. J. (2015). Climate Change: Evidences and Causes. USA: The Royal Society. UNEP and UNDP. (2014). National Climate Change Adaptation Strategy (NCCAS). Accra, Ghana: UNEP/UNDP.