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ADNews-Monrovia: The Government of Liberia has officially endorsed ActionAid Liberia’s (AAL) Fiscal Policies Research Report on extractive industries for climate financing, calling it a “wake-up call” and pledging to use it as a tool to address climate-related issues immediately. On Tuesday, March 18, 2025, AAL launched the report after assessing Liberia’s fiscal policies governing extractive industries for climate financing. The research highlights public interest priorities such as extractive contract terms, licensing practices, and corporate social expenditures. It also reveals gaps in contract transparency, beneficial ownership disclosure, and legal frameworks within the extractive sector.
Contributing Writer: Khulekani Sibindi
The report projects that climate change could shrink Liberia’s economy by 15% and push 1.3 million people into poverty by 2050 if no action is taken. It underscores Liberia’s status as a resource-rich nation heavily dependent on extractive industries like mining, agriculture, and forestry, which account for over 50% of GDP. However, these sectors contribute only 16% to domestic revenue, a disparity attributed to overly favorable fiscal incentives under the Revenue Code, concession agreements, and other policies. ActionAid emphasized that the findings aim to benefit all Liberians and the government, stressing that domestic resource mobilization—particularly from mining and forestry—is critical for national sustainability.
The organization recommended reforms including socioeconomic impact evaluations of fiscal incentives, strengthened institutional governance, infrastructure and technology investments, enhanced transparency, and the use of periodic reviews in mineral laws to renegotiate fiscal terms. Additional recommendations include compliance evaluations for mineral agreements, increased climate-related social expenditures, and greater involvement of civil society organizations.
Benjamin S. Karmorh Jr., Chief Technical Advisor and Climate Focal Point at Liberia’s Environmental Protection Agency (EPA), called the report a “wake-up call” and pledged swift government action on climate issues. UK Chargée d’Affaires Joanna Markbreiter praised the report’s actionable insights and urged stronger civil society engagement in policymaking. She highlighted Liberia’s potential to adopt global best practices in community engagement and environmental mitigation, reaffirming the UK’s partnership with Liberia on forest governance, climate-smart agriculture, and Nationally Determined Contributions (NDCs).
Stephen V. Porter Sr., Deputy Executive Director for Programs at the Rural and Renewable Energy Agency, stressed the need to overhaul tax incentives, noting the extractive sector’s GDP contribution (16%) lags far behind its potential (over 50%). He urged legislative action, citing the President’s recent emphasis on new mineral discoveries and stronger regulations. Deputy Finance Minister Anthony G. Myers acknowledged systemic challenges, attributing low revenue to excessive tax breaks, weak governance, and poor oversight. He proposed three reforms: responsible investment to align fiscal incentives with public welfare, tax reform to reduce loopholes and align incentives with national priorities, and strengthened governance to improve fiscal oversight and wealth distribution. Myers reaffirmed the government’s commitment to sustainable reforms and called for stakeholder support to boost transparency and revenue. 
The endorsement of ActionAid Liberia’s Fiscal Policies Research Report by the Government of Liberia marks a critical step toward addressing systemic challenges in the nation’s extractive industries and climate financing framework. The report’s stark warnings—including a projected 15% economic contraction and 1.3 million people pushed into poverty by 2050 due to climate inaction—highlight the urgent need for reform. Liberia’s heavy reliance on resource extraction, juxtaposed with its low domestic revenue contribution, underscores the pitfalls of outdated fiscal incentives, weak governance, and inadequate transparency.
The collaborative engagement of government institutions, civil society, international partners, and agencies like the UK Embassy signals a shared recognition of the stakes involved. Reforms proposed by ActionAid, such as equitable taxation, strengthened oversight, and civil society inclusion, provide a roadmap for aligning Liberia’s resource wealth with sustainable development and climate resilience. Deputy Finance Minister Anthony Myers’ emphasis on responsible investment, fair taxation, and governance reforms further reinforces the government’s commitment to transforming these challenges into opportunities.
As Liberia navigates new mineral discoveries and mounting climate pressures, the report serves as both a blueprint and a rallying cry. Its success will depend on sustained political will, robust stakeholder collaboration, and accountability mechanisms to ensure that reforms translate into tangible benefits for all Liberians. By prioritizing transparency, equity, and climate action, Liberia can harness its natural resources not only to avert crisis but to build a more resilient and inclusive future.
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