Petition against proposed MPs Pension Fund Scheme Funded by Carbon Credit Revenues

Dear Rt. Hon. Speaker,

We, the undersigned, write to you on behalf of Rescue Mission International (ReMI), an environmental conservation organization dedicated to promoting sustainable development and the responsible use of natural resources in Ghana. We wish to express our profound concern regarding the recent statement made by the Majority Leader, Hon. Mahama Ayariga, on the 29^th of January 2025, during the 8^th sitting of the 1^st meeting of the 1^st session of the 9^th Parliament of the 4^th republic of Ghana proposing the establishment of an MPs’ Pension Fund Scheme to be funded by revenues from carbon credits.

While we acknowledge the need for a sustainable and self-funded pension scheme for Members of Parliament, we strongly oppose the use of carbon credit revenues for this purpose. Carbon credits are a critical tool in the global fight against climate change, and their revenues should be directed toward environmental conservation, climate adaptation and mitigation projects that benefit the broader population, particularly vulnerable communities.

Our concerns are as follows:

1. Misallocation of Carbon Credit Revenues

Carbon credit revenues are intended to support environmental sustainability and climate action. Diverting a portion of these funds to an MPs Pension Fund Scheme would undermine the purpose of carbon credits and deprive Ghana of resources needed to address pressing environmental challenges, such as deforestation, biodiversity loss, and climate change impacts.

2. Global Best Practices for MPs' Pension Schemes

Globally, MPs' pension schemes are typically funded through contributory pension models, investments, or endowment funds, rather than relying on revenues earmarked for specific public or environmental purposes. Examples include:

• United Kingdom: MPs contribute a portion of their salaries to a pension fund, which is then managed by an independent body.
• Canada: The Members of Parliament Retiring Allowances Act establishes a contributory pension plan, with both MPs and the government making contributions.
• South Africa: MPs' pensions are funded through a defined contribution scheme, where both the employer (government) and employees (MPs) contribute.

These models ensure transparency, accountability, and sustainability without diverting funds meant for critical public or environmental initiatives.

3. Lack of Public Consultation

The proposal appears to have been made without adequate consultation with stakeholders, including environmental organizations, civil society, and the public. Carbon credit revenues are a national resource, and their allocation should be transparent, inclusive, and aligned with national development priorities.

4. Potential Negative Impact on Ghana’s Climate Commitments

Ghana has made significant commitments under international agreements such as the Paris Agreement and the United Nations Sustainable Development Goals (SDGs). Misusing carbon credit revenues for non- environmental purposes could damage Ghana’s credibility on the global stage and hinder access to future climate financing.

5. Equity and Fairness

Carbon credit revenues are generated from projects that often involve the participation and sacrifices of local communities, particularly in rural areas. These communities should be the primary beneficiaries of such revenues, not MPs who already receive salaries and allowances funded by taxpayers.

Our Recommendations

We respectfully urge Parliament to reconsider this proposal and explore alternative funding mechanisms for the MPs Pension Fund Scheme that do not compromise Ghana’s environmental and climate goals. Specifically, we recommend the following:

1. Ring-fence Carbon Credit Revenues for Environmental Projects

Carbon credit revenues should be exclusively allocated to projects that promote environmental conservation, renewable energy, reforestation, and climate resilience, in line with Ghana’s national development agenda.

2. Explore Alternative Funding Sources

Parliament should consider other sustainable funding options for the MPs Pension Fund Scheme, such as contributions from MPs’ salaries, investments, or other non-environmental revenue streams.

3. Engage Stakeholders

We call for broad stakeholder engagement, including environmental organizations, civil society, and the public, to ensure transparency and accountability in decisions regarding the use of carbon credit revenues.

Conclusion

As an organization committed to environmental sustainability, we believe that the proposed use of carbon credit revenues for an MPs Pension Fund Scheme is inconsistent with the principles of environmental stewardship and equitable resource allocation. We urge Parliament to prioritize the long-term interests of the nation and its citizens by ensuring that carbon credit revenues are used for their intended purpose— safeguarding Ghana’s environment and supporting climate action.

We trust that you will give this petition the urgent attention it deserves and take the necessary steps to address our concerns. We are available for further discussions and collaborations to advance sustainable development in Ghana.

Thank you for your attention to this matter. Yours sincerely,

Ibrahim Tuzee Abdul-Raheem

Co-Founder and Head of Climate, Environment, and Natural Resources Governance Cluster, Rescue Mission International (ReMI)

[email protected] 0241924890

Signatures:

Cc:

• Clerk of Parliament
• Majority Leader of Parliament
• Minority Leader of Parliament
• Minister of Environment, Science, and Technology
• CEO, Environmental Protection Authority
• Parliamentary Select Committee on Pensions Modules Determination
• Media Houses