Majority Leader of Parliament, Mahama Ayariga
The Alliance for Empowering Rural Communities (AERC) has publicly opposed a legislative proposal by the Majority Leader of Parliament, Mahama Ayariga, to fund a pension scheme for retired parliamentarians using carbon credit revenues.
In a statement released on February 4, 2025, AERC argued that such a move would conflict with the objectives of the Environmental Protection Act, 2025 (Act 1124), which mandates that carbon credit funds be used exclusively for climate change mitigation efforts.
AERC highlighted the ethical and practical implications of diverting funds meant for environmental protection to non-environmental uses.
The organisation cited the Environmental Protection Act, emphasizing that carbon credits are intended to finance projects that reduce greenhouse gas emissions, promote renewable energy, and support conservation initiatives.
“Diverting these resources to finance a pension scheme for parliamentarians contradicts the fundamental purpose of these funds and undermines national commitments to climate action,” the AERC statement read.
AERC suggested that parliamentarians should consider contributing a portion of their salaries to a dedicated pension fund instead of redirecting carbon credit revenues.
“Parliamentarians should allocate a portion of their salaries to a dedicated pension fund. This approach ensures that the responsibility for funding the pension scheme is shared among those who will directly benefit from it,” AERC proposed.
According to the group, this self-contribution model would present a more equitable approach to pension funding.
Additionally, AERC called for a comprehensive review of existing parliamentary benefits, such as car loans and other allowances, to identify potential funding sources.
“A thorough evaluation of parliamentary benefits could reveal areas where funds can be reallocated to support the pension scheme, promoting a more sustainable and self-funded system,” the organization stated.
AERC also advocated for public-private partnerships as an alternative funding source.
“Engaging private sector entities in co-financing the pension scheme can provide additional funding avenues,” AERC noted.
The group suggested that such collaborations could involve investments in infrastructure projects or other revenue-generating initiatives earmarked for the pension fund, leveraging both public and private resources.
AERC proposed a voluntary contribution system that would allow MPs to contribute additional funds toward their pension scheme, fostering a sense of personal investment in their future financial security.
“Introducing a voluntary contribution system, where MPs can opt to contribute additional funds to the pension scheme, would allow for a more flexible and personalized approach to funding,” the group suggested.
AERC stressed the importance of preserving carbon credits for their intended purpose, warning of the potential negative consequences for rural communities, which are most vulnerable to climate change effects.
“It is imperative that we do not compromise our environmental commitments for short-term financial arrangements,” the statement concluded.
GA/MA
