EPA Dispels Claims of Climate Finance Loss, Outlines Progress Towards Carbon Market Readiness

Keith Morrison| Contributing Reporter

Monrovia, Liberia – August 8, 2025 — The Environmental Protection Agency (EPA) of Liberia has responded strongly to recent claims published in the August 8 edition of FrontPage Africa under the headline: “Liberia Risks Losing Millions in Climate Finance Without Carbon Market Authority.” Contrary to the report, the EPA says Liberia is not missing out on climate finance, but is instead making steady progress toward carbon market readiness through a structured and inclusive approach.

In a press statement issued Friday, the EPA clarified that the establishment of a Carbon Market Governance Framework which the article referred to as Carbon Market Authority (CMA), is just one component of a broader framework required under Article 6 of the Paris Agreement. This article governs how countries can trade carbon credits through national and international carbon market mechanisms.

The EPA, through the National Climate Change Steering Committee (NCCSC) Secretariat, has been leading efforts to ensure that Liberia is well-prepared both technically and institutionally to participate in the global carbon market.

According to a press release issued by the EPA, Key Milestones Achieved to date include among others:

1. National Carbon Market Policy Drafted:

A national policy has been developed to define Liberia’s vision and guiding principles for engaging in carbon markets. A series of consultations are ongoing to socialize this policy nationwide, culminating in a major stakeholders’ dialogue scheduled for August 21–22 in Ganta, Nimba County. This event will bring together county superintendents, civil society actors, private sector representatives, academics, and other government stakeholders.

2. Legal Framework Underway:

A draft climate change law is in development, with plans to embed legal provisions for carbon trading and the formal establishment of a Carbon Market Governing Structure. The EPA is in the final stages of hiring a legal firm to craft this legislation.

3. Capacity Building and Institutional Readiness:

Government officials and technical staff across multiple agencies are receiving training in carbon accounting, benefit-sharing mechanisms, and Article 6 compliance procedures.

4. Carbon Stock Assessments Ongoing:

Scientific assessments are underway to measure Liberia’s carbon stock in forests, mangroves, and other ecosystems. These assessments, conducted with support from the Coalition for Rainforest Nations (CfRN), will help determine Liberia’s carbon market value. A CfRN team is expected in Liberia later this month to conclude in-person training with the EPA, Forestry Development Authority (FDA), and other partners.

5. Nationwide Stakeholder Consultations:

The EPA has been holding consultations across Liberia to engage communities, the private sector, and civil society in the carbon market readiness process, ensuring inclusivity and transparency.

6. International Partnerships and Negotiations:

Liberia is actively engaged in international climate negotiations and has been courting investment interests. During the June UN Climate Conference in Bonn, Germany, EPA Executive Director Dr. Emmanuel K. Urey Yarkpawolo led a delegation that met with top European bankers keen on investing in carbon projects in countries that meet Article 6 requirements. These potential investments aim to support Liberia’s Nationally Determined Contributions (NDCs) and the ARREST Agenda for Inclusive Development.

The EPA emphasized that Liberia is not losing access to climate finance, but rather building a solid foundation for sustainable, high-return participation in the carbon market. “We are taking deliberate, methodical steps to ensure that when Liberia enters the carbon market, it does so with strong governance, transparent benefit-sharing and credible data that protects national interests,” the agency stated.

The EPA reaffirmed its commitment to establishing a Carbon Market Governing Institution as part of its broader readiness plan, ensuring that the institution is not just created but made operational from day one.

“As custodians of Liberia’s environmental resources, our goal is to unlock climate finance opportunities in a way that benefits all Liberians and promotes sustainable development,” the EPA concluded.