Morocco remains largely on the sidelines of effective pricing for its greenhouse gas emissions. This is the conclusion drawn by the Organisation for Economic Co-operation and Development (OECD) in its 2025 report on effective carbon rates, which highlights a fragmented pricing architecture dominated by indirect tax instruments and lacking any explicit carbon pricing mechanism.
According to the OECD, by 2023, only 28.4% of national greenhouse gas emissions were subject to a positive net effective rate. The Kingdom imposes no explicit carbon price; the existing constraint is primarily based on fuel taxation, considered an implicit pricing mechanism, which covers 38.6% of emissions. Meanwhile, subsidies granted to fossil fuels account for another 19% of emissions, partially neutralizing the effect of fiscal levies and reducing the overall impact of the price signal.
This coexistence of taxes and public support leads to a paradoxical outcome: the average net effective carbon rate in Morocco is negative. Calculated in constant euros for 2023, it stands at -4.88 euros per tonne of CO₂e. Behind this average lies a significant gap between, on one hand, fuel taxes evaluated at 23.53 euros per tonne of CO₂e and, on the other, subsidies for fossil fuels estimated at 28.41 euros per tonne. In other words, the fiscal effort is more than offset by support mechanisms, resulting in an overall disincentive for emission reductions.
The distribution of emissions confirms this strong heterogeneity. Approximately 29% of emissions are subject to a positive net pricing, while a smaller fraction, close to 15%, bears a rate exceeding 60 euros per tonne of CO₂e. This restricted core contrasts with a majority of emissions that are either lightly taxed or subsidized, revealing a highly uneven carbon constraint.
The disparities are particularly noticeable from one sector to another. Moroccan emissions primarily stem from carbon dioxide linked to energy use, accounting for over 70% of the national total. Road transport bears the highest pricing levels, even though it represents nearly 20% of emissions. In contrast, the buildings, industry, and certain other sources of greenhouse gases show either zero or negative effective rates. Together, these segments account for over 45% of national emissions.
While fuel taxes apply to a wide range of activities—agriculture, fishing, buildings, industry, electricity production, and transportation—their intensity varies significantly depending on usage, limiting their ability to structure a coherent decarbonization trajectory. The OECD’s assessment paints a picture of a system still heavily reliant on existing instruments, where the carbon constraint remains partial, diffuse, and insufficiently aligned with long-term climate objectives.