The government must develop a robust Environmental, Social, and Governance (ESG) framework to mitigate environmental challenges within the expanding refinery sector, according to Benjamin Nsiah, an energy policy analyst and Executive Director of the Centre for Environmental Management and Sustainable Energy (CEMSE).
His comments followed former President John Dramani Mahama’s sod-cutting ceremony for Phase II of the Sentuo Oil Refinery on Thursday, June 25, 2026.
While the expansion project is expected to boost Ghana’s refining capacity, strengthen national energy security, and create thousands of jobs, Mr. Nsiah cautioned that the environmental costs must not be ignored.
Speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5 FM, Mr. Nsiah emphasised that despite the clear economic benefits of the expansion, the nation must proactively address the resulting ecological footprint.
He noted that increased refining capacity will inevitably elevate emission levels, a critical concern given the country’s current gaps in emissions management and the fact that even minor emissions accelerate ozone layer depletion.
“We need develop a very robust environmental social governance framework. I think one of the key challenges that been will be confronted with is the emission levels will increase. Already we are not doing much in terms of emissions but any little emission contributes ro the depletion of the ozone layer. So emissions will rise but as they rise how do we balance it, how do we zero it. In zeroing it will require us to develop a very robust environmental social governance framework so that we will encourage Sentuo to incorporate corporate social responsibility by planting of trees and implement activities of mitigation that will reduce the emission impact so it will not affect us that much,” Mr. Nsiah stated.
He further noted that environmental concerns will inevitably intensify in the communities hosting these operations. To safeguard these vulnerable areas, he urged the government to establish a targeted framework ensuring that Sentuo channels the majority of its corporate social responsibility (CSR) initiatives into local afforestation and mitigation projects.
Beyond the ecological risks, Mr. Nsiah warned that weak regulatory oversight could expose the sector to severe governance issues, including tax evasion and operational breaches.
He specifically highlighted governance vulnerabilities within state institutions, particularly the Tema Oil Refinery (TOR), arguing that a lack of robust, responsible, and accountable management inevitably breeds operational inefficiencies and creates massive financial liabilities for the state.
“The sustainability of this initiative will depend heavily on government priority and policy. Since the refinery business is becoming a critical enterprise within our political and economic landscape, the government ought to develop a very strong environmental, social, and governance framework that exhibits global best practices and standards. If we develop a proper policy, we can prevent entities in the sector from breaching guidelines or evading taxes, both of which undermine sustainability. Additionally, we must protect this sector from undue political interference, ensuring that a change in political power does not lead to the undermining of these vital companies,” he concluded.
By: Rainbowradioonline.com/Ghana