Oil markets are risky, renewables are safer for Ghana’s future—UN adviser warns

The United Nations Global Compact and the Ocean Centres Initiative have urged Ghana to step up efforts to attract clean energy investment by reducing economic and regulatory risks, noting that renewable energy offers more long-term stability than fossil fuels.

The call was made at a briefing held in Accra on Wednesday, July 23, 2025, where speakers discussed Ghana’s role in the Ocean Centres Initiative and shared the UN Secretary-General’s latest climate message.

Delivering the address titled “A Moment of Opportunity: Supercharging the New Energy Era” on behalf of UN Secretary-General António Guterres, Dr Emmanuel Kofi Mbiah said the global move towards clean energy is no longer just about climate goals.

He argued that fossil fuels are increasingly linked to economic volatility, citing recent global events such as Israel’s attack on Iran and Russia’s invasion of Ukraine, which disrupted global oil markets and affected Ghana’s own fiscal planning.

“The energy mix is not mutually exclusive,” Dr Mbiah said. “But fossil fuel markets are volatile and exposed to global shocks. Renewables like solar, wind and tidal energy, which are being supported through the Ocean Centre platform, offer energy security and economic resilience.”

Dr Mbiah said Ghana’s transition to net-zero emissions by 2060 is based on three main areas: investment in renewable infrastructure, supportive policies, and targeted financing.

He added that attracting international capital would depend on Ghana’s ability to lower investment risks.

“We must de-risk the economy to make these projects attractive,” he said. “That is how we will draw the financing necessary to scale up our offshore renewables.”

In response to questions on Ghana’s continued investment in oil and recent moves toward nuclear energy, Dr Mbiah said both are still part of the transition process.

He described nuclear power as clean but expensive, and although Ghana has the technical know-how through the Ghana Atomic Energy Commission, the high cost and associated risks mean it cannot serve as the country’s main energy source.

“China leads in renewables but still uses coal. Ghana will continue developing oil fields but must also act quickly so we are not left behind with outdated technologies,” he said.

Executive Director of the UN Global Compact Network Ghana, Mr Tolu Kweku Lacroix, said Africa has an opportunity to bypass older, more polluting energy models by investing early in cleaner technologies.

He said global investors are increasingly backing countries that are planning for a cleaner energy future.

“Germany has invested $3 billion in a hydrogen facility in Namibia,” Mr Lacroix said. “Investors are choosing locations with future-facing energy systems. Ghana must position itself accordingly.”

He said the Ocean Centres Initiative, which includes Ghana among its pilot countries, aims to support the development of sustainable blue economies. Ghana is expected to focus on offshore wind and tidal energy, as well as improved port systems for low-emission shipping.

“There is strong interest from countries like Norway in supporting Ghana’s blue corridor,” Mr Lacroix added, referring to sustainable port facilities being considered for ships powered by hydrogen and ammonia.

“These platforms are designed to unlock new investment and position Ghana to benefit from the next energy era.”

On the rising electricity demands from artificial intelligence and digital systems, Dr Mbiah said Ghana cannot choose between digital development and clean energy.

He said both are now essential to the country’s future.

“AI is already embedded in our lives,” he said. “If we don’t invest in renewables now, we will be overwhelmed by future energy needs.”

Touching on Ghana’s climate targets, Dr Mbiah said the country’s 2060 goal reflects its fair share under the Paris Agreement. But he cautioned that slow progress could cost Ghana access to green finance and investor confidence.

“The developed countries have tighter targets because of their historical emissions, but that doesn’t mean we can afford to delay. The window is narrowing,” he said.

Mr Lacroix noted that while nuclear energy remains part of Ghana’s plans, global trends are shifting in favour of renewable options, which are seen as safer and easier to scale.

“The Ocean Centre doesn’t replace Ghana’s nuclear agenda, it complements it by providing accessible, investable alternatives at scale,” he said.

Ghana is expected to submit updated Nationally Determined Contributions (NDCs) at COP30 next year.