Morocco is strengthening its commitment to climate action with the adoption of the Climate Finance Strategy 2030, an initiative aimed at mobilizing more funding to support its environmental goals, particularly by involving the private sector.
A Growing Need for Climate Financing
Despite its commitment to the Paris Agreement and the adoption of a low-carbon strategy by 2050, Morocco faces a major challenge: financing its climate ambitions. With high targets, particularly those defined in the Nationally Determined Contribution (NDC), the country must find solutions to finance projects related to combating climate change. Although progress has been made globally, where nearly $1.3 trillion was mobilized for climate projects between 2021 and 2022, the contribution of the Moroccan private sector remains limited, representing between 25% and 30% of climate financing, a figure below the average for the MENA region.
Three Pillars for Green Finance
The Climate Finance Strategy 2030 is based on three major pillars, each aimed at strengthening financial efforts to support the transition to a green economy.
- Integrated Market Solutions: This pillar aims to encourage the creation of an integrated financial market and to raise awareness among the private sector about green financing opportunities. This includes promoting suitable financial instruments, such as green bonds, and identifying attractive climate projects that combine profitability with positive environmental impact. The government also plans to bundle small projects and provide them with technical assistance to improve their financial viability.
- Key Accelerators: To stimulate private investments, the second pillar focuses on risk-sharing mechanisms, such as public-private partnerships (PPPs) and blended finance. These instruments reduce risks for investors while making projects more economically attractive. Tax incentives and administrative simplifications are also planned to encourage the private sector to adopt green financing solutions.
- Fundamentals: The third pillar seeks to strengthen Morocco’s financial framework to better manage climate risks. This includes the introduction of a green taxonomy that will clearly define what constitutes a green investment. Bank Al-Maghrib is also involved in developing standards to assess and mitigate climate risks, thereby ensuring the resilience of the financial sector in the face of environmental challenges.
Strong Governance for Success
The success of this strategy relies on rigorous governance. Steering committees and advisory boards, involving key financial players and ministries, will be established to oversee the implementation of this roadmap. Working groups will be tasked with collecting data and improving sustainable financing practices in Morocco.
An Essential Public-Private Partnership
Morocco aims to mobilize up to 50% of the funding needed for its climate projects from private investors by 2030. This mobilization is crucial for the country to meet its climate commitments while creating sustainable economic opportunities for future generations.
In conclusion, the Climate Finance Strategy 2030 positions Morocco as a central player in green finance in Africa, while offering the private sector an opportunity to play a key role in combating climate change.
With L’Opinion.ma