Liberia Risks Development Bank Support Over Carbon Credit Sales
Liberia's approval of a carbon sales framework is critical to secure ongoing support from the African Development Bank (AfDB). The country faces potential funding loss unless it navigates the challenges of carbon credit sales amid growing demand from airlines and governments.
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Liberia's government has been urged to approve a carbon credit sales framework to avoid losing financial support from the African Development Bank (AfDB). The AfDB has linked a portion of its funding to the establishment of this framework, vital for Liberia's development.
Currently, airlines, including British Airways and Emirates, are mandated to purchase carbon credits to offset emissions, creating a high demand for such credits. However, Liberia's expedited carbon policy could undermine its long-term revenue from forest protection.
NGOs have raised concerns about insufficient community consultation regarding proposed frameworks, which could affect Liberia's reputation and climate commitments under the Paris Agreement. The AfDB's carbon support facility remains undeveloped, and without timely policy action, Liberia risks significant funding gaps.
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