‘EPA, GSS to integrate natural capital into GDP calculation’
GHANA is making significant strides to address data gaps and integrate Natural Capital Accounting (NCA) into its development planning.
Natural Capital Accounting aims to quantify and evaluate the economic value of a country’s natural resources and ecosystems.
Launched about a year ago, the NCA initiative is led by the Environmental Protection Agency (EPA) and the Ghana Statistical Service (GSS), with support from various ministries, including the Ministry of Finance, the National Development Planning Commission, the Ministry of Fisheries and Aquaculture Development, and the Forestry Commission with funding from the World Bank.
At a media and civil society organisations engagement in Accra on Tuesday, the Executive Director of the EPA, Dr John Krugu, underscored the importance of natural capital encompassing minerals, land, soil, air, water, and forests and the need for its sustainable management in order to enhance policy and decision-making.
Dr Krugu stressed the need for high-quality, reliable, and timely data to manage natural capital effectively, in line with the United Nations System of Environmental-Economic Accounting (SEEA) Central Framework.
“NCA offers a transformative framework that could revolutionise Ghana’s environmental management and unlock opportunities for both people and the planet,” Dr Krugu said and emphasised that natural capital, both renewable and non-renewable should be included in Gross Domestic products (GDP) calculations to provide a comprehensive view of the country’s economic value.
Furthermore, Dr Krugu noted that the United Nations Statistics Commission had urged member countries to account for natural resources in GDP calculations to promote inclusive growth and development.
As part of the NCA agenda, he said, the EPA and GSS would conduct baseline studies in order to evaluate the value of Ghana’s mineral resources, assess the costs and benefits of their extraction, and analyse their environmental impact on local communities.
The Director of Economic Statistics at the GSS, Mr Edward Asuo Afram, added that the new global sustainability programme advocates incorporating natural capital into GDP calculations.
Consequently, he said, the GSS would collaborate closely with the EPA to integrate natural capital into Ghana’s GDP measures.
He highlighted that while Ghana is renowned for its beautiful landscapes, rich biodiversity, and diverse ecosystems, acknowledging and valuing these resources beyond their immediate market value is vital for sustainable development.
The Communications Specialist for the Ghana NCA Programme, Mrs Baaba Cofie, said that the NCA process was for generating baseline data on the country’s natural resources, which would aid in their preservation for future generations hence calling on the media to champion the cause.
BY BENEDICTA GYIMAAH FOLLEY
