Liberia: Liberia Faces US$460M Climate Climate Funding Gap

The African Development Bank is reporting that Liberia, which is one of the world’s least polluting countries, is in dire need of funding to fight climate change, as the county faces a staggering US$460 million funding gap.

The revelation from the Bank, which is one of the country's major lenders, comes as experts warn that Liberia is highly vulnerable to the adverse effects of climate change.

In its African Economic Outlook 2023 report, the Bank said that the country needs an estimated $490.6 million to achieve its climate and green growth ambitions through 2025.

“[But Liberia] faces a gap of $460 million based on its Nationally Determined Contribution, with zero financing yet from the private sector,” the Bank said in the report.

“Some of the main reasons are difficulty accessing financing to pay for adaptation actions, lack of financial incentives to motivate private actors to invest in new products or markets that support adaptation, and lack of de-risking opportunities in investments — particularly large-scale infrastructure investments that support green growth.”

The issue of the climate change funding gap is a problem that is not only unique to Liberia but many African countries. Africa emits only about three percent of global greenhouse gasses, experts say but is home to many countries that are among the most exposed to the effects of climate change, notably worsening droughts, and floods. 

Africa, according to reports, needs between US$50 -US$100 billion annually to adapt to the effects of climate change but faces a critical shortfall in accessing funding as is the case with Liberia, which is highly vulnerable to the impacts of climate change.

Liberia’s climate funding deficit comes as it requires substantial financial support to implement effective climate change mitigation and adaptation measures. The impact of climate change is already worsening the country’s flood-related disasters, and the frequency of extreme weather events is projected to increase in the coming decades. 

According to the World Bank, climate change has caused the loss of approximately 0.8 square kilometers of land in Liberia in recent decades, and this would increase further in the coming decades.

A predicted 16cm sea level rise by 2030 in the Greater Monrovia area alone would have a significant impact on 675,000 people and 9,500 hectares of land in Liberia, the Bank said in a 2021 report that profiles the risk of climate change in the country.

Additionally, climate change is expected to have significant effects on key sectors such as agriculture, fisheries, and energy, exacerbating existing social and economic vulnerabilities, particularly among rural populations.

But despite these threats, Liberia continues to experience a funding gap that hampers its ability to undertake large-scale climate projects, which poses challenges for implementing climate-related policies and programs.

This comes as more and more Liberians are getting worried about climate change and its impacts on the country, according to a survey by Afrobarometer.

The survey claimed that the majority of Liberians believe that climate change is making life worse and want the government to do “a lot more” to limit its impact.

More Liberians, the survey shows, believe that the government has the primary responsibility for fighting climate change and limiting its impact but, without funding, it is hard to see how the government can realize the aspirations of the people. 

Meanwhile, the African Development Bank has noted that Liberia, despite its vulnerability, has great potential as a carbon sink for the world, given its huge forest reserves. 

“In 2018, natural capital was worth US$24.7 billion, or US$5,134 per capita, including forest capital per capita of US$1,035. Natural capital could therefore serve as a potential source of climate action and green growth financing with private sector involvement,” the Bank said in its 2023 African Economic Outlook report.