The Ministry of Economy and Finance, Bank Al-Maghrib (BAM), the Moroccan Capital Market Authority (AMMC) and the Insurance and Social Security Control Authority (ACAPS) have adopted a new strategy for the development of climate finance by 2030. This strategy aims to respond to the growing financing needs of projects linked to the fight against climate change, with emphasis on mobilizing the sector private. Morocco is a committed player in this fight, as evidenced by its accession to the Paris Agreement and the adoption of a low-carbon strategy for 2050. However, the country’s ambitious climate objectives require considerable funding. This need for capital constitutes one of the main challenges in achieving its national and international commitments, such as the Nationally Determined Contribution (NDC). The climate finance strategy developed by Morocco is part of a global dynamic where, between 2021 and 2022, 1.3 trillion dollars have been mobilized to finance climate projects around the world, with nearly 50% coming from the private sector. However, in Morocco, the share of the private sector in climate financing still only represents 25% to 30%, a figure lower than the average observed in other countries in the MENA region.
The « 2030 Climate Finance Strategy » is based on three major interconnected pillars, aiming to align financial efforts with the Kingdom’s climate objectives. The first pillar concerns integrated market solutions. This pillar focuses on creating an integrated financial market and raising awareness of green financing opportunities among private actors. This involves offering a comprehensive financing offer, combining suitable financial instruments and extra-financial services, in order to meet market needs and encourage investors to engage in projects with a positive environmental impact. One of the major axes of this pillar is the identification of attractive climate projects. It aims to facilitate the understanding and identification of climate projects by private investors, who must combine financial profitability and positive impact on the climate, focusing on the reduction of greenhouse gas (GHG) emissions. The Moroccan government also plans to consolidate small projects and offer technical assistance to improve their bankability. The pillar also includes the promotion of green financial instruments. One of the main challenges for the Moroccan financial sector lies in the lack of awareness of green financial instruments. This component focuses on communication around existing financial products, such as green bonds or loans for ecological projects. The objective is to strengthen investor confidence by providing them with tools and clear information on climate financing. Finally, it is about developing innovative financial instruments. Morocco aspires to expand its offer by introducing solutions such as FinTechs or voluntary carbon markets. These innovations will make it possible to develop financial products accessible to the general public, particularly for the purchase of electric vehicles or for work related to energy efficiency. Key accelerators The second pillar focuses on mechanisms to effectively mobilize private financing, notably through risk sharing and financial incentives. The objective is to create a favorable framework for private investment by reducing the risks associated with projects. ts climatic conditions. One of the key levers is the establishment of risk-sharing mechanisms, such as public-private partnerships (PPP) or blended finance schemes. These instruments are designed to attract private capital by making projects less risky for investors, while increasing their economic attractiveness. Morocco also plans to introduce tax incentives and administrative simplifications to encourage private actors to adopt green financing solutions. Green labels, reporting obligations and green investment targets for financial institutions will also be put in place. Fundamentals The third pillar aims to strengthen the foundations of the Moroccan financial market in terms of climate risk management and to integrate a green taxonomy, in order to ensure the coherence and transparency of financed projects. The strategy emphasizes the importance of measuring and mitigating climate-related risks in the financial sector. Bank Al-Maghrib is already working on developing standards to assess these risks and ensure that the banking sector is resilient in the face of climate challenges. The establishment of a green taxonomy is essential to define what constitutes a “green investment” in Morocco. This framework will ensure that funded projects meet international sustainability standards, while ensuring rigorous monitoring of climate finance flows. It is also planned to strengthen the skills of financial actors through training programs on climate finance and risk management. An international cooperation framework will be developed so that Morocco remains aligned with global best practices. Governance tools The success of this strategy is based on solid governance, with the creation of steering committees and advisory councils bringing together the main financial players and the ministries concerned. Working groups will also be created to ensure the implementation of the various axes of the strategy, particularly in terms of data collection and improvement of sustainable financing practices. The 2030 climate finance strategy represents a unique opportunity for the private sector to play a central role in the fight against climate change. By offering a clear financing framework and reducing risks for investors, it allows Morocco to position itself as a major player in green finance in Africa and beyond. However, to achieve these goals, private sector engagement and strong partnerships between public and private actors will be crucial. By mobilizing up to 50% of the necessary financing from private investors by 2030, Morocco will not only be able to honor its climate commitments, but also create sustainable economic opportunities for future generations.
