Despite efforts to discourage the use of charcoal in favour of more environmentally friendly fuel options, it remains one of the most important fuel sources in Ghana, and a key contributor to deforestation. According to a report by Ghana's national forest reference level (FRL) to the UNFCCC the rate of deforestation and forest degradation has been on the rise in recent decades. From 2013 to 2015, the annual deforestation rate in Ghana rose to 794,214 ha per annum (Ghana's National Forest Reference Level, 2017). As a key driver of deforestation in Ghana, charcoal production negatively impacts climate change, biodiversity and livelihoods, making it an unsustainable option. Despite interventions and policies by government to ban wood fuel/charcoal, the consumption continues to rise, implying increased pressure on forest resources. There is an urgent need to substitute current fuel wood sources like shea and mahogany, with easily regenerative natural wood for household energy provision while conserving forests for effective ecosystem functioning. This policy brief provides a comprehensive analysis of the latest data and empirical evidence to set out a transformational pathway for greening the charcoal value chain and presents policy options for creating a climate-smart charcoal sector to enhance profitability and make the charcoal value chain a specific component of nationally determined contributions to the mitigation of climate change.

4 p.