Monrovia, Liberia – The government of Liberia has formally accepted the Fiscal Policies Research Report on extractive industries for climate funding by ActionAid Liberia (AAL), referring to it as a “wake-up call” and promising to utilize it as a tool to solve climate-related concerns.
The Liberian government has formally accepted ActionAid Liberia’s (AAL) Fiscal Policies Research Report on extractive sectors for climate funding, describing it as a “wake-up call” and promising to utilize it as a tool to solve climate-related concerns right away. Following an evaluation of Liberia’s fiscal policies controlling extractive sectors for climate funding, AAL released the study on Tuesday, March 18, 2025. The study emphasizes issues of public interest including corporate social responsibility, licensing procedures, and exploitative contract conditions. It also highlights weaknesses in the extractive industry’s legal frameworks, beneficial ownership disclosure, and contract transparency.
According to the research, if nothing is done, climate change could cause Liberia’s economy to decrease by 15% and force 1.3 million people into poverty by 2050. It emphasizes Liberia’s position as a resource-rich country that depends mostly on extractive sectors including forestry, mining, and agriculture, which generate more than half of its GDP.
These industries only make up 16% of domestic income, though this discrepancy is ascribed to the income Code’s unduly advantageous fiscal incentives, concession agreements, and other laws.
ActionAid underlined that the results are intended to benefit the government and all Liberians, and that mobilizing local resources, especially those from forestry and mining, is essential to the viability of the country.
The group suggested changes such as assessing the socioeconomic effects of fiscal incentives, strengthening institutional governance, investing in technology and infrastructure, increasing transparency, and renegotiating fiscal conditions through periodic reviews of mineral laws. Evaluations of mining agreement compliance, more funding for social programs connected to climate change, and enhanced participation from civil society groups were also suggested.
The Environmental Protection Agency (EPA) of Liberia’s Chief Technical Advisor and Climate Focal Point person, Benjamin S. Karmorh Jr., referred to the study as a “wake-up call” and promised prompt government action on climate challenges.
The report’s practical suggestions were commended by UK Chargée d’Affaires Joanna Markbreiter, who also called for increased civil society participation in policymaking. She reaffirmed the UK’s collaboration with Liberia on forest governance, climate-smart agriculture, and Nationally Determined Contributions (NDCs), highlighting the country’s ability to embrace international best practices in environmental mitigation and community participation.
The Rural and Renewable Energy Agency’s Deputy Executive Director for Programs, Stephen V. Porter Sr., emphasized the necessity of reforming tax incentives, pointing out that the extractive sector’s 16 percent GDP contribution falls well short of its potential of over 50%. Citing the President’s recent emphasis on new mineral discoveries and stricter restrictions, he called for legislative action.
Anthony G. Myers, the deputy finance minister, admitted that there were systematic issues and blamed low revenue on excessive tax exemptions, inadequate management, and bad governance.
He suggested three reforms: tax reform to close loopholes and match incentives with national goals; improved governance for better wealth distribution and fiscal accountability; and responsible investment to match fiscal incentives with public welfare. Myers appealed for stakeholder assistance to increase openness and underlined the government’s commitment to long-term reforms.
Reported by:Joseph Tumbey
