Legal and Institutional Obstacles to the Implementation of a Green Taxonomy in Cameroon

Introduction

A green taxonomy is a classification system that identifies activities or assets considered sustainable. The need for a taxonomy arises to help investors and other economic players clearly identify which activities meet established ecological criteria, and channel their resources accordingly.

A study by Natixis currently identifies 17 existing green taxonomies, as in South Africa, and a few more under development in countries such as Rwanda and Senegal (Azoulay et al., 2023). Cameroon has no green taxonomy, making it difficult for investors interested in sustainable investments to know in which areas to channel their resources. This also explains the gap in meeting the country’s green financing needs, with only around 390 million USD raised to date out of the 60 billion USD required (Djamo et al, 2025). It is therefore important for the country to develop a green taxonomy to meet its financing needs, and to further involve the highly under-represented private sector. 

1. Importance of a Green Taxonomy

​ Currently, Cameroon faces a financing gap to meet its climate goals by 2030, with only 2.6% of funds mobilized coming from the private sector in 2022. This means that Cameroon still needs to mobilize around $59.9 billion to close the gap.

A green taxonomy would therefore provide a clear framework for identifying sustainable economic activities, reducing the risk of greenwashing and enhancing transparency for investors. It would also facilitate access to international financing, such as green bonds, by aligning projects with recognized environmental criteria.

In addition, the introduction of a green taxonomy would harmonize public policies with Cameroon’s international commitments, notably the 35% reduction in greenhouse gas emissions by 2030. It would also serve as a benchmark for green budgeting, which has already begun with the allocation of 225.3 billion FCFA in 2025 for climate projects.

In short, the importance of a green taxonomy lies in its ability to mobilize the necessary investment, enhance transparency and align national initiatives with global climate objectives.

      2. Legal and Regulatory Obstacles

Lack of legal frameworks:

Although Cameroon has recognized climate change issues and championed sustainable development and practices, there are still no comprehensive legal frameworks on sustainability, particularly with regard to their integration into national policy. For example, according to an IMF study, sustainability considerations are not integrated into the public financial management framework, fiscal planning and public investment management (International Monetary Fund. African Dept., 2024).

Furthermore, the introduction of a green taxonomy must be accompanied by the introduction of regulations on other key sustainability issues to ensure effective practice. For example, Cameroon has no explicit laws on corporate greenwashing. As a result, companies may claim sustainable practices when this is not the case, compromising the work of the taxonomy. Similarly, although the country has developed climate policies such as the NDS30 and made commitments to its Nationally Determined Contributions (NDCs), there are still no regulatory requirements for companies or public institutions to integrate sustainability into their planning and budgets (World Bank Group, 2022).

Lack of implementation mechanisms

Another persistent shortcoming is the lack of enforcement mechanisms to guarantee the implementation of climate change policies. For example, although the country has ratified international agreements and established environmental policies, implementation remains weak. One of the problems identified is that the courts are not experienced in dealing with climate change cases, and administrative and judicial staff lack the capacity to handle such cases (Mbutu, 2021). 

The absence of these enforcement mechanisms has also led to Cameroon’s suspension from certain international agreements, further weakening its implementation framework regarding its sustainability commitments. For example, Cameroon was a signatory to the EU’s Voluntary Partnership Agreement (VPA), which is a legally binding trade agreement between the EU and Cameroon aimed at ensuring that timber and timber products exported to the EU are legally produced. However, Cameroon has been suspended from the VPA due to persistent illegal logging and weak governance in the implementation of forestry regulations (The Guardian Post, 2024).

3. Institutional Barriers

The institution is the foundation of any right. In particular, it controls the implementation of that right (Lacours, 2003). The role of the institution is to achieve a given objective.

In the context of taxonomy, the existence of adequate institutions to enable better implementation of this rather particular legislation. In this respect, Cameroon faces an institutional deficit that should facilitate the implementation of a green taxonomy. This institutional problem relates to the lack of coordination between the ministries and agencies involved in environmental management. While it is true that Cameroon does not yet have a real green taxonomy, the fact remains that the bodies involved in some way in the transition to a Cameroonian green economy are totally uncoordinated.

As in other countries or regional groupings that have adopted a taxonomy, coordination between the various state institutions is an essential measure. It is all the more important to ensure a coherent, integrated approach to the transition to a green economy. In addition to this obstacle, the capacity deficit of the institutions concerned can also be raised. This deficit relates in particular to the limited allocation of competencies to the institutions responsible for implementing a green taxonomy in Cameroon. But we should also mention the lack of technical expertise capable of promoting the implementation of such legislation.

Recommendations

Establish and centralize environmental authorizations: Streamline approvals for ecological projects, reducing delays caused by the fragmentation of mandates between ministries. This would ensure consistent application of sustainability criteria and facilitate efficient project implementation.

Integrate taxonomy into climate policies: Align green taxonomy with Cameroon’s Nationally Determined Contributions (NDCs) by integrating taxonomy standards into national climate and development strategies. Amending the 1996 Environmental Management Law to require major public investments and tax policies to adhere to taxonomy-based sustainability criteria will help mainstream green finance.

Strengthen biodiversity and ABS legislation: Update the 1994 Forestry, Wildlife and Fisheries Act to explicitly include access and benefit-sharing (ABS) mechanisms for genetic resources, ensuring that local communities benefit from sustainable resource use. This will also clarify what is meant by “sustainable use”, by excluding deforestation-related activities from eligibility for green investments.

Promote green public-private partnerships (PPPs): Offer tax incentives and risk-sharing mechanisms to attract private investment in taxonomy-aligned projects, particularly in the fields of renewable energy and sustainable agriculture. Pilot PPPs with development banks to co-finance projects meeting strict environmental standards.

Main laws to be amended:

• Environmental Management Act 1996 (no. 96/12): Mandate the integration of green taxonomy into all major projects and national strategies.
• 1994 Forestry, Wildlife and Fisheries Act: Update to include ABS protocols and stricter definitions of sustainability.

These actions will clarify legal frameworks, encourage sustainable investment and align Cameroon’s policies with global climate objectives.

Conclusion

The advent of taxonomy is an effective and coherent response to the problems of environmental protection. As environmental protection is a concern shared by all countries, it was essential that this response be initiated jointly.

Unfortunately, the emergence of taxonomy within the legal systems of individual states has been the result of scattered actions, as in the case of the European Union. African states such as Cameroon do not yet have a taxonomy. But the process of establishing one is underway. It would be wise to establish one, in order to benefit from the advantages, it could bring to the Cameroonian economy. However, the implementation of a taxonomy in Cameroon faces numerous challenges, both legal and institutional. These two challenges are key to the effectiveness of taxonomy in Cameroon. Appropriate solutions therefore need to be found.

Reference

1. ADB. (2023). Rapport Pays 2023 – Cameroun – Mobiliser les financements du secteur privé en faveur du climat et de la croissance verte. African Development Bank. https://www.afdb.org/fr/documents/rapport-pays-2023-cameroun-mobiliser-les-financements-du-secteur-prive-en-faveur-du-climat-et-de-la-croissance-verte 

2. Loi n°2024/013 du 23 décembre 2024 portant loi de finances de la République du Cameroun pour l’exercice 2025. https://impots.cm/fr/actualites/loi-ndeg2024013-du-23-dec-2024-portant-loi-de-finance-de-la-republique-du-cameroun-pour

3. Le Beuze E. (2024). Taxonomie verte : un langage commun qui doit intégrer la biodiversité. https://www.ateliersbiodiversite.org/post/taxonomie-verte-un-langage-commun-qui-doit-int%C3%A9grer-la-biodiversit%C3%A9

4. Djamo, F. H. et al. (2025). Climate Financing in Cameroon: Challenges, Initiatives, and Priorities for The Private Sector, Cameroon Economic Policy Institute (CEPI),
5. Kouam, H. (2024). Impact of Climate Change on Female Farmers, 24(6) Cameroon Economic Policy Institute, Henri Kouam Foundation,https://camepi.org/agriculture-and-trade/impact-of-climate-change-on-female-farmers-in-cameroon/

6. Lecours A. (2003). L’approche néo-institutionnaliste en science politique : unité ou diversité ? Volume 21, numéro 3, 2002, p. 3–19. https://www.erudit.org/fr/revues/ps/2002-v21-n3-ps407/000494ar/

7. Rapport sur la feuille de route de la taxonomie. (2022). Mobiliser la finance pour une croissance durable en définissant les investissements verts et les investissements de transition. https://www.canada.ca/content/dam/fin/publications/sfac-camfd/2022/09/2022-09-fra.pdf

8. Etude sur la mise en valeur du potentiel du secteur prive à stimuler la croissance verte et la création d’emplois au Cameroun https://www.uneca.org/sites/default/files/TCND/Validation/Rapport%20d%27e%CC%81tude%20provisoire.pdf

9. La taxonomie européenne des activités durables : quels impacts pour les entreprises européennes ? https://energie-fr-de.eu/files/ofaenr/04-notes-de-synthese/02-acces-libre/06-societe-environnement-economie/2021/OFATE_PWC_Note_de_synthese_Taxonomie_2111.pdf

10. Rapport du Cameroun préparation nationale a la conférence des nations unies sur le développement durable (RIO+20). https://sustainabledevelopment.un.org/content/documents/1020cameroon.pdf

11. World Bank Group. (2022). Country Climate and Development Report. Available at: https://openknowledge.worldbank.org/server/api/core/bitstreams/9deeaf4b-a936-5e56-9397-21780f1d764d/content#:~:text=Cameroon%20submitted%20its%20updated%20NDC)%20in%20November,supporting%20the%20country’s%20adaptation%20and%20decarbonization%20goals.

12. Mbutu, N.H. (2021). A Legal Appraisal of the Mechanism for the Enforcement of Measures to Fight Against Climate Change in Cameroon. Available at: https://www.neliti.com/publications/344156/a-legal-appraisal-of-the-mechanism-for-the-enforcement-of-measures-to-fight-agai#id-section-content.

13. International Monetary Fund. African Dept. (2024). Climate change in Cameroon: Key challenges and reform priorities, IMF eLibrary. Available at: https://www.elibrary.imf.org/view/journals/002/2024/052/article-A003-en.xml.

AUTHORS

Elishammah Nyaba

Research Analyst

&

Tchoupe Fossi

Research Analyst

&

Haiwang Djamo

National Coordinator & Research Analyst

&

Henri Kouam

Founder & Executive Director

Rea the full article here (In French)

Read the full article here (In English)