Morocco
Climate champion seeking solar riches
The Kingdom of Morocco was a relatively early adopter of green economy approaches, as encroaching deserts and spiralling costs for imported fossil fuels – as well as the political ramifications of the 2011 Arab Spring – prompted new thinking on energy, employment and social welfare. As a result, Morocco has emerged as a global leader on renewable energy, decarbonisation and climate, rated number one in the developing world by the Climate Change Performance Index in 2016, and chosen as host for the UN’s COP22 climate conference that year. But does the desert nation's response to COVID signal a retreat to the polluting industries of the past?
Morocco was an early and enthusiastic champion of solar energy, aiming to turn its vast, mountainous and virtually uninhabited deserts into productive natural resources – potentially even a new export industry. When launched in 2009, the Morocco Solar Plan was the most ambitious on the planet; the country now boasts the world’s largest concentrated solar farm at Ouarzazate and is well on its way to achieving its target of 52% renewables by 2030.
Three key pieces of legislation have driven this impressive progress. A new constitution in 2011 recognised the rights of all Moroccan citizens to a healthy environment, clean water and sustainable development – one of the first in the world to do so. This was considerably expanded upon in the 2013 National Charter of the Environment and Sustainable Development, which set out a series of legal rights and protections for ecosystems & resources, introduced sustainable development as a core value for public policy, and established an environmental police force.1
Finally, the Stratégie Nationale pour le Développement Durable (SNDD) was launched in 2014 as Morocco’s flagship sustainable development strategy, setting out 157 detailed activities and USD 10 billion in funding across seven core sustainability challenges.
Outside of its impressive energy sector, Morocco’s progress towards a green and fair economy is solid but unspectacular. Legislation is in place on green finance, poverty-environment vulnerability, decarbonisation and natural resource protection, but is often vague and more aspirational than effective. Government accountability and independent oversight is often lacking, with a free press and an effective civil society only slowly emerging after decades of semi-authoritarian rule.
Morocco now faces some hard choices. The country gained international renown for its early commitment to climate action, but the rest of the world has since caught up; and the country's policy response to COVID-19 has so far offered no support for a green recovery, focusing instead on bail-outs for business-as-usual industries - a clear conflict with the ambitions of the 2030 National Climate Plan. Factor in the complex legacy of post-Arab Spring political liberalisation, and the future of Morocco’s green transformation is uncertain.
Will it redouble its green ambition and embrace reform, or will the Kingdom retrench in the face of global economic instability? The Moroccan green economy is moving; watch this space.
Policy Scores
Last updated 26 Jan 2021
Green COVID-19 Recovery
Morocco released two economic stimulus packages in 2020, with support so far totalling approximately 3.3% of GDP. In March, a USD$3.6 billion ‘Special Fund for the Management and Response to COVID-19’ was established, jointly financed by the government, public and private entities. The fund provides support for the immediate pandemic response, including expanding healthcare, procuring medical equipment and enhancing social protection. At King Muhammed VI’s Throne Speech in July, the country announced a further USD$12.8 billion economic recovery package, which aims to retain existing productive sectors and preserve jobs and income. The package is divided into two main initiatives: a USD$8.15 billion Central Guarantee Fund which provides state-guaranteed loans for businesses; and a USD$4.88 billion Strategic Investment Fund which will finance major investment projects implemented within the next five years via public-private partnerships (with project selection based on job-creation potential). The broad nature of these initiatives sustains business-as-usual economic activity, and no specific green stimulus measures, investments or wider support for a green recovery is apparent as part of the packages to date.
Morocco has largely focused on a relatively conventional package of stimulus and stabilisation policies for its health care system. Meanwhile, targeted, unconditional funding has been provided to environmentally-harmful industry in the form of a USD$621 million bailout for the national airline, Royal Air Maroc. Overall, the lack of specific support for a green recovery is at odds with the otherwise ambitious clean energy targets and trajectory set out in Morocco’s 2030 National Climate Plan.
Morocco released two economic stimulus packages in 2020, with support so far totalling approximately 3.3% of GDP. In March, a USD$3.6 billion ‘Special Fund for the Management and Response to COVID-19’ was established, jointly financed by the government, public and private entities. The fund provides support for the immediate pandemic response, including expanding healthcare, procuring medical equipment and enhancing social protection. At King Muhammed VI’s Throne Speech in July, the country announced a further USD$12.8 billion economic recovery package, which aims to retain existing productive sectors and preserve jobs and income. The package is divided into two main initiatives: a USD$8.15 billion Central Guarantee Fund which provides state-guaranteed loans for businesses; and a USD$4.88 billion Strategic Investment Fund which will finance major investment projects implemented within the next five years via public-private partnerships (with project selection based on job-creation potential). The broad nature of these initiatives sustains business-as-usual economic activity, and no specific green stimulus measures, investments or wider support for a green recovery is apparent as part of the packages to date.
Morocco has largely focused on a relatively conventional package of stimulus and stabilisation policies for its health care system. Meanwhile, targeted, unconditional funding has been provided to environmentally-harmful industry in the form of a USD$621 million bailout for the national airline, Royal Air Maroc. Overall, the lack of specific support for a green recovery is at odds with the otherwise ambitious clean energy targets and trajectory set out in Morocco’s 2030 National Climate Plan.
Governance
National green economy plan
The Stratégie Nationale pour le Développement Durable (SNDD, 2014) sets out seven key sustainability challenges (broadly: governance, green economy, resources, climate, vulnerable communities, inequality, and culture) and 137 detailed development objectives. Overall budget is an estimated 97 billion MAD (10 billion USD), equivalent to 2% of GDP every year. Due to expire in 2020 and no successor yet announced. Strong, but lacks independent assessment or oversight. Additionally, 2011 constitutional reform guarantees the right to a healthy environment and sustainable development.
The Stratégie Nationale pour le Développement Durable (SNDD, 2014) sets out seven key sustainability challenges (broadly: governance, green economy, resources, climate, vulnerable communities, inequality, and culture) and 137 detailed development objectives. Overall budget is an estimated 97 billion MAD (10 billion USD), equivalent to 2% of GDP every year. Due to expire in 2020 and no successor yet announced. Strong, but lacks independent assessment or oversight. Additionally, 2011 constitutional reform guarantees the right to a healthy environment and sustainable development.
Inclusive governance
SNDD based on broad consultation with all major stakeholders from the public sector, private operators and civil society, but vague on details and no formal procedures for follow-up consultation or assessment. Employee involvement in corporate governance encouraged by the Moroccan Code of Good Corporate Governance Practices, but there is no mandatory requirement or gender inclusive elements.
SNDD based on broad consultation with all major stakeholders from the public sector, private operators and civil society, but vague on details and no formal procedures for follow-up consultation or assessment. Employee involvement in corporate governance encouraged by the Moroccan Code of Good Corporate Governance Practices, but there is no mandatory requirement or gender inclusive elements.
SDG business strategy
Moroccan policy on business involvement with the SDGs is not clear. The Confederation Générale des Enterprises Marocaines has established a Green Economy Commission to support companies in transitioning to sustainable practices, but there is currently no explicit link to SDGs.
Moroccan policy on business involvement with the SDGs is not clear. The Confederation Générale des Enterprises Marocaines has established a Green Economy Commission to support companies in transitioning to sustainable practices, but there is currently no explicit link to SDGs.
Wealth accounting
The Social, Economic and Environmental Council (CESE) together with Bank Al-Maghrib has produced a comprehensive report of natural and intangible capitals, together with recommendations to integrate this approach into national statistics and the formulation of public policies.
The Social, Economic and Environmental Council (CESE) together with Bank Al-Maghrib has produced a comprehensive report of natural and intangible capitals, together with recommendations to integrate this approach into national statistics and the formulation of public policies.
Finance
Green finance plan
A commitment to establish a National Institutional Governance Framework for Climate Finance has been made, together with proposals to produce a sectoral investment plan, build a portfolio of climate adaptation projects, build national capacity on green finance, and create a national climate fund. However, these proposals have yet to be implemented.
A commitment to establish a National Institutional Governance Framework for Climate Finance has been made, together with proposals to produce a sectoral investment plan, build a portfolio of climate adaptation projects, build national capacity on green finance, and create a national climate fund. However, these proposals have yet to be implemented.
Green fiscal & monetary policy
SNDD describes substantial fiscal commitments, but overall orientation of fiscal policy is not clear. No detailed green monetary policy yet established, though some “green” taxes ecotaxes in place but very narrowly defined - for example in the waste and plastic sectors - with no specific overall strategy.
SNDD describes substantial fiscal commitments, but overall orientation of fiscal policy is not clear. No detailed green monetary policy yet established, though some “green” taxes ecotaxes in place but very narrowly defined - for example in the waste and plastic sectors - with no specific overall strategy.
Safe & accountable banks
The Central Bank (Al-Maghrib) conducts regular stress tests, but these include only financial indicators. Environmental risks are mentioned in the annual report of 2016 but not integrated in the central risk management policy.
The Central Bank (Al-Maghrib) conducts regular stress tests, but these include only financial indicators. Environmental risks are mentioned in the annual report of 2016 but not integrated in the central risk management policy.
Pricing carbon
Some government interest towards establishing a national framework for carbon valuation and trading, with potential links with the EU Emissions Trading Scheme. Pilot schemes under the Partnership For Market Readiness (PMR) testing the carbon market approach in the phosphate, cement and electricity sectors. Still in early stages, but impressive aspiration.
Some government interest towards establishing a national framework for carbon valuation and trading, with potential links with the EU Emissions Trading Scheme. Pilot schemes under the Partnership For Market Readiness (PMR) testing the carbon market approach in the phosphate, cement and electricity sectors. Still in early stages, but impressive aspiration.
Sectors
Green sectoral policy plan
Intersectoral bodies in place, tasked with reviewing and validating green policies. Some sector-specific programs already launched, including a national solar energy plan and strategies for waste management, regional development and industrial growth, but these lack integrated cross-cutting approach and sometimes ignore environmental factors.
Intersectoral bodies in place, tasked with reviewing and validating green policies. Some sector-specific programs already launched, including a national solar energy plan and strategies for waste management, regional development and industrial growth, but these lack integrated cross-cutting approach and sometimes ignore environmental factors.
Small business support
The CMPP agency to support greener business has been created, and public support programme offers training, mentoring and financing specifically targeted towards small businesses. Social enterprises lack a specific legal form, but co-operative status is recognised.
The CMPP agency to support greener business has been created, and public support programme offers training, mentoring and financing specifically targeted towards small businesses. Social enterprises lack a specific legal form, but co-operative status is recognised.
Carbon budgeting
Non-binding commitment to reduce carbon by 42% below business-as-usual levels by 2030, conditional on “gaining access to new sources of finance and to additional support relative to support received in recent years.” Preliminary work on budgeting under the carbon market PMR initiative, to be expanded to other sectors.
Non-binding commitment to reduce carbon by 42% below business-as-usual levels by 2030, conditional on “gaining access to new sources of finance and to additional support relative to support received in recent years.” Preliminary work on budgeting under the carbon market PMR initiative, to be expanded to other sectors.
Clean energy policy
Solid target of 52% of installed power from renewables – 20% solar, 20% wind, and 12% hydro – by 2030. Moroccan Solar Plan (MSP), launched 2009, set out a high level of ambition for the time. Longer term commitments unclear and overall strategy for transport, buildings and overall energy consumption still not defined.
Solid target of 52% of installed power from renewables – 20% solar, 20% wind, and 12% hydro – by 2030. Moroccan Solar Plan (MSP), launched 2009, set out a high level of ambition for the time. Longer term commitments unclear and overall strategy for transport, buildings and overall energy consumption still not defined.
People
Green jobs
SNDD makes explicit mention of green jobs and bridging the skills divide between fossil-based work and the new clean economy. A number of sustainable employment initiatives launched across sectors including ecotourism, climate adaptation, biodiversity protection, and transport. The National Initiative for Human Development (NIDH), Morocco’s main poverty alleviation programme, includes commitments towards inclusivity and accessibility for marginalised groups.
SNDD makes explicit mention of green jobs and bridging the skills divide between fossil-based work and the new clean economy. A number of sustainable employment initiatives launched across sectors including ecotourism, climate adaptation, biodiversity protection, and transport. The National Initiative for Human Development (NIDH), Morocco’s main poverty alleviation programme, includes commitments towards inclusivity and accessibility for marginalised groups.
Pro-poor policy
SNDD interlinks with main poverty alleviation programme, the National Initiative for Human Development (NIDH), aiming to link environmental and poverty challenges and reduce social & environmental vulnerability for the poor. Some community-based climate adaptation programmes for poor groups. Although link has been made at the strategic level, most existing social welfare programmes are still agnostic on environmental risks.
SNDD interlinks with main poverty alleviation programme, the National Initiative for Human Development (NIDH), aiming to link environmental and poverty challenges and reduce social & environmental vulnerability for the poor. Some community-based climate adaptation programmes for poor groups. Although link has been made at the strategic level, most existing social welfare programmes are still agnostic on environmental risks.
Participatory policymaking
Several references to gender issues and marginalised groups, but largely vague and aspirational rather than concrete. Full civic, social & political gender equality guaranteed by 2011 constitution. Public consultation and impact assessment mechanisms under development, alongside the creation of new national & regional evaluation bodies. Policy impact assessment processes unclear.
Several references to gender issues and marginalised groups, but largely vague and aspirational rather than concrete. Full civic, social & political gender equality guaranteed by 2011 constitution. Public consultation and impact assessment mechanisms under development, alongside the creation of new national & regional evaluation bodies. Policy impact assessment processes unclear.
Innovative social protection
Some pilot programmes in place, but tend to be limited in scope and rather piecemeal. The Moukawalati, Moubadara and Tatmine programs provide support to local cooperative enterprises, and the desertification & forests commission has established training programmes for networks of “nature defenders”.
Some pilot programmes in place, but tend to be limited in scope and rather piecemeal. The Moukawalati, Moubadara and Tatmine programs provide support to local cooperative enterprises, and the desertification & forests commission has established training programmes for networks of “nature defenders”.
Nature
Ocean & land conservation
National review of SDG implementation reasonably strong but no specific strategies for SDGs 14 & 15, but several ongoing programmes on protection of land and marine resources, including the Blue Belt Initiative on oceans and wetlands, the Green Agricultural Plan, and the “Halieutis 2020” programme on fisheries. Additionally, the National Charter of the Environment and Sustainable Development (2013) strengthens legal rights and protections of ecosystems & resources and establishes an environmental police force to enforce these.
National review of SDG implementation reasonably strong but no specific strategies for SDGs 14 & 15, but several ongoing programmes on protection of land and marine resources, including the Blue Belt Initiative on oceans and wetlands, the Green Agricultural Plan, and the “Halieutis 2020” programme on fisheries. Additionally, the National Charter of the Environment and Sustainable Development (2013) strengthens legal rights and protections of ecosystems & resources and establishes an environmental police force to enforce these.
Natural capital accounts
Environment Ministry has announced interest in natural capital accounts, and some preliminary work done on water accounting, but little information publicly available. Several policies reference impact on natural resources, but no overall strategy or government commitment to develop a comprehensive natural accounting system.
Environment Ministry has announced interest in natural capital accounts, and some preliminary work done on water accounting, but little information publicly available. Several policies reference impact on natural resources, but no overall strategy or government commitment to develop a comprehensive natural accounting system.
Natural capital committee
The Institut Royal des Etudes Stratégiques (IRES) covers research and policy recommendations on environment, climate and natural resources, although degree of independence from government is unclear and no focus on national wealth accounting. Some interest in joining the World Bank’s ecosystem services project, WAVES, but little new information since 2013.
The Institut Royal des Etudes Stratégiques (IRES) covers research and policy recommendations on environment, climate and natural resources, although degree of independence from government is unclear and no focus on national wealth accounting. Some interest in joining the World Bank’s ecosystem services project, WAVES, but little new information since 2013.
Nature-based fiscal reform
Some financial and fiscal incentives to support new projects in environment & sustainable development, including subsidies, customs and duties exemptions, reduced interest rates, and long-term loans, but no specific focus on natural capital, or clear earmarking of budgets for restoration.
Some financial and fiscal incentives to support new projects in environment & sustainable development, including subsidies, customs and duties exemptions, reduced interest rates, and long-term loans, but no specific focus on natural capital, or clear earmarking of budgets for restoration.