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ANALYSIS OF GHANA’S NEW ENVIRONMENTAL PROTECTION ACT, 2025 (ACT 1124) A consolidated climate & environment regime that transforms regulation, enforcement and carbon governance


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Ghana’s Environmental Protection Act, 2025 (Act 1124) marks one of the most sweeping legal reforms since the establishment of the Environmental Protection Agency under Act 490 in 1994. More than simply revising the old statute, the new Act repeals Act 490 entirely, absorbs provisions from separate hazardous waste, e-waste and pesticide statutes, and—most significantly—creates a full legal architecture for climate governance and carbon markets in Ghana.


This article unpacks the journey from Act 490 to Act 1124, highlights the discontinuities, and evaluates what the new law means for NGOs, businesses, regulators and investors. It also offers actionable steps for compliance and advocacy.


Context: What Act 490 did—and what it did not do

For three decades, Act 490 was the backbone of Ghana’s environmental regulatory regime. Its core achievements included the establishment of the Environmental Protection Agency (EPA), procedures for environmental impact assessments (EIAs), the setting of pollution standards, and the regulation of pesticides. It also created a National Environment Fund to support environmental programs.


However, the law reflected a pre-climate era. It never anticipated carbon markets, climate finance, national contributions under the Paris Agreement, or the technical governance required for mitigation outcomes and MRV systems. Hazardous waste laws existed outside the EPA Act, e-waste was dealt with later in separate legislation (Act 917), and pesticide rules were distributed across statutes.


In short—the law regulated pollution, but not the climate economy.

That is where Act 1124 fundamentally breaks new ground.


The Environmental Protection Act, 2025 (Act 1124): Key Innovations

A. From Agency to Authority — a rebuilt regulatory institution

Act 1124 replaces the EPA with the Environmental Protection Authority, a strengthened entity with expanded legal powers, fiscal independence, and climate mandate. For the first time, environmental practice itself becomes a regulated profession: consultants, engineers, EIA assessors and environmental management specialists must now be certified and registered.


This alone reshapes the environmental and engineering market. Under Act 490, quality depended largely on internal EPA discretion. Under Act 1124, environmental services become formalized, professionalized and enforceable—raising standards and accountability.


B. One Unified Environmental Code — consolidation of fragmented laws

The new Act is a legal merger. It integrates regulatory areas previously scattered across multiple Acts, including:

  • pesticide management and licensing

  • hazardous and other waste

  • electronic and electrical waste management (e-waste)

Instead of four or five parallel frameworks, Ghana now has a single umbrella statute with dedicated Parts for pesticides, hazardous waste and e-waste. This improves clarity, reduces regulatory gaps, and creates a more coherent enforcement system.


C. The biggest shift: the climate chapter & carbon markets framework

This is the transformational heart of Act 1124.

The law creates Ghana’s first climate governance and carbon market system, including:

Climate Instrument

Function

Climate Change Chapter (Part V)

Anchors national climate obligations, carbon pricing instruments & non-market approaches

Ghana Carbon Registry (GCR)

Digital registry for carbon projects, voluntary credits, ITMOs and MRV records

Carbon Markets Office (CMO)

Statutory office responsible for project approval, MRV, transactions & Article 6 compliance

Carbon Market Committee

Technical oversight on mitigation technologies & methodologies

Mitigation Fund

Financing facility to support climate projects and generate mitigation outcomes

For the first time, Ghana has a legal infrastructure to trade ITMOs under Article 6.2, operate voluntary market projects, and integrate climate strategies across sector planning, district assemblies, and national reporting frameworks.

Act 1124 is not just environmental regulation—it is the legal gateway into the carbon economy.


D. Principles now have the force of law

Act 1124 codifies environmental principles that were previously implicit:

  • Precautionary principle

  • Polluter-pays

  • Common but differentiated responsibilities

  • Intergenerational equity

  • Sustainable development

These are no longer moral expectations—they are statutory interpretive rules, enforceable and usable in litigation.


E. Enforcement is no longer symbolic — penalties now bite

Under Act 490, fines were low enough for corporations to absorb as operating costs. Act 1124 raises penalties sharply and increases the Authority’s administrative enforcement power. Offences related to unregistered pesticides, illegal waste handling, pollution breaches or failure to comply with enforcement notices can now result in fines large enough to financially immobilize offenders—and even imprisonment.

Compliance is no longer optional. Deterrence is intentional.


Side-by-Side Comparison — Act 490 vs Act 1124

Category

Old Act 490 (1994)

New Act 1124 (2025)

Core institution

Environmental Protection Agency

Environmental Protection Authority (stronger mandate)

Climate governance

None

Full climate chapter + carbon markets + registry + MRV

Pesticides

Covered in Act 490 but outdated

Modernized, strengthened, Pesticide Management Fund

Hazardous & e-waste

In separate Acts (917 etc.)

Integrated under one legal framework

Professionalisation

No certification regime

Mandatory certification of practitioners

Enforcement

Low penalties, weak deterrence

High penalties, real enforcement leverage

Vision Scope

Pollution control

Environment + climate + carbon economy governance

Act 1124 is not an amendment. It is a system reboot.


Why NGOs must engage immediately

Civil society stands at a strategic inflection point. The law opens—and may close—doors depending on how NGOs respond.


1. Influence carbon rights and benefit-sharing rules

The law leaves gaps in defining carbon ownership, revenue allocation and community benefit-sharing. NGOs can shape regulations to protect forest communities, farmers and vulnerable populations.


2. Accountability and climate justice enforcement

If integration of climate into district and national planning becomes tokenistic, NGOs will be the counterbalance.


3. Public oversight of the Ghana Carbon Registry

The Registry will reveal who controls carbon projects. Monitoring prevents elite capture, opaque approvals and greenwashing.


4. Community capacity-building

No rural farmer, fishing community or women’s cooperative will automatically understand MRV rules or ITMO contracts. NGOs must bridge the knowledge divide.


5. Strategic litigation

The new penalty regime means enforcement failures can be challenged—and victories can set precedent.


Why businesses cannot hesitate

Act 1124 is both risk and opportunity.

A. Compliance duties intensify

Businesses face stricter enforcement on pollution, waste, pesticides and EIA conditions. Using uncertified consultants could invalidate approvals. Non-compliance is now expensive.

B. Competitive advantage for early movers

Companies that act quickly can:

  • access carbon revenues and climate finance

  • register mitigation projects early before the market crowds

  • strengthen ESG credentials for lenders and export markets


Act 1124 is not only an environmental law—it is a market opening.

C. Industry sectors most affected

  • Oil & gas and mining

  • Power and energy

  • Agribusiness and forestry

  • Waste management and recycling

  • Real estate, construction and manufacturing

Those who move early will set pricing, secure registry priority, and dominate carbon supply pipelines.


Action Steps — Practical Response Plans

For NGOs

  • Map priority provisions and develop advocacy positions on carbon rights and safeguards.

  • Participate in consultations for regulations and MRV guidelines.

  • Build transparency watch programs to track the Carbon Registry.

  • Train communities to understand climate contracts, enforcement rights and benefit-sharing.


For Businesses

  • Conduct a compliance gap audit immediately.

  • Develop or revise internal ESG/environmental management systems referencing Act 1124.

  • Engage early with the Carbon Markets Office to structure carbon projects.

  • Train executives—environmental compliance is now a financial and strategic issue, not CSR.


Conclusion

The Environmental Protection Act, 2025 (Act 1124) is the most ambitious environmental reform in Ghana’s regulatory history. It consolidates fragmented statutes, institutionalises climate governance, operationalises carbon markets, and raises enforcement power to a level proportionate to contemporary environmental risk.

Act 490 was written for a pollution-era economy.Act 1124 is written for a climate-economy future.


How Ghana’s NGOs, businesses and regulators respond in the next 12–24 months will determine whether this law catalyses environmental justice, drives climate investment, or becomes another unrealised statute. The window is open—but only briefly.

 

Cedric Dzelu

Technical Director

Office of the Minister of State for Climate Change and Sustainability

 
 
 

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