Journal of Resources Development and Management www.iiste.org ISSN 2422-8397 An International Peer-reviewed Journal Vol.32, 2017 131 Saving forests to mitigate climate change: What can microfinance contribute to the REDD+ policy process in Ghana? Ernestina Fredua Antoh, PhD Senior Fellow, Bureau of Integrated Rural Development (BIRD), Kwame Nkrumah University of Science and Technology (KNUST), PMB UPO Kumasi, Ghana E-mail: ernestina1960@yahoo.co.uk Albert A Arhin, MSc (Corresponding author) Department of Geography, University of Cambridge, Cambridge, CB2 3EN, United Kingdom E-mail: aaa72@cam.ac.uk; Kwaku Obeng-Okrah, M.Phil Research Fellow, Bureau of Integrated Rural Development (BIRD), Kwame Nkrumah University of Science and Technology (KNUST), PMB UPO Kumasi, Ghana akookrah@yahoo.co.uk Abstract Deforestation is estimated to contribute to one-fifth of climate change. The idea of Reducing Emissions from Deforestation and forest Degradation (REDD+) has been promoted by UN Framework Convention on Climate Change (UNFCCC) to save tropical forest and mitigate climate change. In Ghana, deforestation is thought to have been driven largely by expansive cocoa production system. In view of this, the policy strategy of the Government has focused on improving cocoa productivity to reduce the expansive forms of agriculture into forest areas. This paper discusses the roles that microfinance can play in this effort. It draws on long-term research on microfinance and semi-structured interviews from hundred households in seven communities around the Kakum National Park in the Twifo Hemang Lower Denkyira District, Ghana. The paper finds that microfinance can enable smallholder farming communities to reduce deforestation in Ghana through at least three roles. These are (a) agricultural investment (b) technological adoption and (c) agribusiness skills development. Based on these findings, it is recommended that the project implementers stand a better chance of achieving the project objective if they include microfinance elements into the programme. Given the centrality of REDD+ in the international effort of climate change mitigation, this research adds important insights into one of the ways through which the vision of halting, slowing and reversing trends of deforestation could be achieved in Ghana and elsewhere. Keywords: microfinance, REDD+, climate change, Ghana, agriculture 1. Introduction Climate change is regarded as one of the most significant long term development risks of the 21st century (World Bank, 2010). Scientists warn that millions of people, especially the poor could be exposed to an increased incidence of droughts, famine, and floods; unreliable rainfall patterns; rising sea levels; food and freshwater shortages and the loss of their livelihoods if climate change is not mitigated Bernstein et al (2008). Deforestation and forest degradation contributes to about 12–20% of the anthropogenic carbon (CO 2 ) emissions causing climate change (Van Der werf, 2009; Stocker et al., 2013). In view of this, the policy of REDD+ has been adopted by the United Nations Framework Convention on Climate Change (UNFCCC) to reduce global forest sector emissions to mitigate climate change. The REDD+ refers to a policy mechanism for Reducing Emissions from Deforestation and Degradation (REDD) and the ‘+’ referring to conservation, sustainable management of forests and enhancement of carbon stocks. The prime objective of REDD+ is to reduce forest loss and reverse carbon emissions from the forestry sector (UNFCCC, 2011). REDD+ has continued to inspire global climate policy optimism. It remains an essential component of the recently launched Sustainable Development Goals (SDGs) and the 2015 Paris climate change agreement that seeks to limit global temperature to below 1.5 OC