Greening the Charcoal Value Chain in Ghana- a N A M A a p p r o a c h

Charcoal remains one of the most important sources of fuel in Sub-Saharan Africa including Ghana. A look through the supply chain highlights the inter-linkages with issues of energy, deforestation, employment and other socio-economic and environmental challenges.

A NAMA provides an opportunity to develop a "sustainable charcoal value chain" through a combined approach of

policies, technology intervention, finance and capacity building.

CharcoalValue Chain

C u r r e n t s t a t u s

¬ Ghana has one of the highest deforestation rates in the world.

¬ Ghana loses about 135,000hectares of forests annually.

¬ 21.7% (4,940,000 ha) of Ghana is covered in forest.

¬ Ghana lost 2,500,000 ha since the early 1990s.

Source: FAO Ghana – Forest Resources Assessment (2010)

1. Deforestation¬ About 90% of the wood used is

obtained from natural forests with the 10% remaining coming from

logging and sawmill waste. ¬ Almost all kilns in Ghana are traditional earth mound kilns which are the least efficient in

terms of charcoal yield.

Source: Strategic National Energy Plan(SNEP) of Ghana

2. Charcoal Production

¬ Brong-Ahafo and Eastern regions produce over half of the

country’s charcoal.¬ Ashanti and greater Accra region

consume 50% of the country’s charcoal.

3. Supply Chain and Distribution

¬ GHACCO target for distributing efficient cookstoves: 5 mil. by 2020.

¬ Population of Ghana in 2020: 30 mil.¬ Average household size: 4 (GSS, 2008).¬ No. of households in 2020: 7.5 mil.¬ GHACCO target coverage: 2/3rds of

the projected households.

4. Charcoal Consumption

1. Tackling Deforestration in Ghana

2. Forestry and Charcoal production

3. Supply chain and Distribution

to community and secure their buy-inReach out leaders

and the rural charcoal producers through the support of community leadersInform educate

Woody Biomass+ Agricultural & Biomass waste

Interventions and capacity building

Technological support

Charcoal bagging, Ecolabels and Taxes

Government to sign formal with co-operatives to minimum conditions for pursuing sustainable charcoal practices.

guaranteeagreements

S u s t a i n a b l eCharcoalValue Chain

Improvements under

NAMA

the creation of charcoal producers cooperativesSupport

Transportation

Member of charcoal association travels

with transporters to negotiate the best

price at the charcoal warehouse

Inter-Ministeral Committee

National Charcoal Authority

National Charcoal Fund

Manages Charcoal Revenue

(Goes directly to Regional/Districts)

Sets Quality Standards/Acreditions

and issues licenses

Regional GovernmentSets revenue targets, allocates ‘green/black” charcoal bags to

districts. Also ensures validity of standards and licenses

District/Local Administration

Sells charcoal bags to producers or bulk

distributors

Bulk DistributorsPrivate Cos.

pre-purchase bags and sell them to local

charcoal producers

Legal CharcoalGreen and Black refer to ecolabels for “legal” charcoal and will have

a differentiated taxation structure

Charcoal WarehouseAll charcoal

entering urban areasenter the warehouse

(Key MRV point)

Illegal Charcoal Producers

Any charcoal not transported in

designated charcoal bags

Awareness creationCharcoal retailers and

bulk purchasers are educated about not

buying illegal charcoal

Revenue Collection Agencies

Private Cos. appointed through tender process to levy tax on “illegal”

charcoal being transported across

regional borders

Sustainable Charcoal Producers

Purchase “green” charcoal bags

Conventional Charcoal Producers

Purchase “black” charcoal bags

The complete NAMA Study jointly developed by UNDP’s MDG Carbon and the Regional Environment Project on the Management of Environmental Services and Financing for Sustainable Development, is available here:http://www.undp.org/content/undp/en/home/librarypage/environment-energy/mdg-carbon/nama-study-for-a-sustainable-charcoal-value-chain-in-ghana/

For more information:Helene Gichenje,UNDP, www.undp.org

Dr. Alexandra Soezer, MDG Carbonwww.mdgcarbon.org

Infographic data collated by: Arindam Basu,Grue + Hornstrup A/S

Infographic designed by: Debarpan Das