Morocco

Morocco’s long-term decarbonisation framework is set by its Long-Term Low-Emissions Development Strategy to 2050 (LT-LEDS), presented around COP28 as a quantitative pathway toward a net-zero economy by mid-century. The LT-LEDS builds on Vision Maroc 2050 and specifies sectoral trajectories across energy, buildings, industry, transport, agriculture, forests/land use and waste, using economy-wide scenario modelling (e.g., LEAP). It interfaces with the Revised NDC (2021), which commits to 18.3% unconditional and up to 45.5% conditional GHG reductions by 2030 (vs. BAU), and with ongoing sector strategies (renewables, efficiency, mobility, water). Institutional coordination is led by the energy–environment ministries and interministerial committees, with technical support from international partners. A single cross-sector “green economy act” with legally binding, economy-wide implementation obligations has not been enacted.

Morocco has established participatory mechanisms for SDG implementation, including the National Commission for Sustainable Development and civil society consultation in the National Strategy for Sustainable Development (SNDD). However, employee participation in corporate governance is not mandated, and board-level representation is not legislated. On gender diversity, Morocco adopted the Law 19-20 (2021) which increased requirements for women’s representation on boards of publicly listed companies to 30% by 2024 and 40% by 2027. ESG disclosure is promoted through the Moroccan Capital Market Authority (AMMC), which issued ESG Reporting Guidelines in 2022, but these remain voluntary.

Public participation in Morocco is constitutionally guaranteed under the 2011 Constitution, which recognises citizen involvement in public affairs and access to information. Implementation mechanisms include the legal framework for citizen petitions and legislative initiatives, local consultative councils, and participatory budgeting pilots in several municipalities. The government has introduced digital participation portals and guidelines to standardise citizen engagement, while major climate and development processes (such as the NDC and LT-LEDS) have involved structured stakeholder workshops. Despite these, participatory practice remains uneven, with limited follow-up or binding influence on policy outcomes, and no uniform obligation for social or gender impact assessments across ministries or legislative procedures.

Morocco’s New Development Model and sector strategies emphasise inclusive growth, territorial equity, sustainability, and resilience. Statistical and planning documents track socioeconomic and environmental indicators (emissions, energy mix, water stress, land use), and research initiatives have piloted composite wellbeing indices. However, there is no single, government-adopted comprehensive wealth framework (covering human, social, natural, produced, and financial capital) embedded in fiscal rules or appraisal guidance; beyond-GDP integration remains under development.

Morocco is among the leaders in Africa on green finance. The Central Bank (Bank Al-Maghrib) and AMMC have integrated sustainable finance principles, including climate-risk disclosure aligned with TCFD. Morocco issued its first sovereign green bond in 2022 to finance renewable energy and climate-resilience projects, complementing private green bond issuances on the Casablanca Stock Exchange. The country is also working with the UNDP and World Bank to develop a sustainable finance taxonomy. However, mandatory climate stress testing for banks has not yet been fully implemented, though pilot climate-risk assessments are ongoing.

"Morocco’s 2025 Budget continues its fiscal consolidation trajectory under the IMF’s Resilience and Sustainability Facility (RSF), maintaining debt reduction goals and promoting climate-resilient public investment. Reforms include integrating climate considerations into fiscal planning and infrastructure budgeting. Bank Al‑Maghrib has reinforced green finance through updated guidance and a dedicated Green Finance Unit in 2024. However, mandatory climate stress testing for all financial institutions is not yet established, and monetary policy remains centred on inflation and exchange rate stability rather than environmental risk.

Morocco’s trade instruments include sustainable-development/environment provisions, but there is no evidence of dedicated liberalisation schedules for environmental goods/services, interoperability with green taxonomies or carbon pricing, nor UNFCCC/CBDR-linked market-access exemptions. Under the U.S.–Morocco FTA (in force since 2006), cooperation is implemented via the 2024–2027 Plan of Action on Environmental Cooperation, which sets workstreams on air quality, waste, and environmental governance. With the EU, trade is governed by the 2000 Association Agreement; DCFTA negotiations started in 2013 but were put on hold after the April 2014 round at Morocco’s request. In parallel, the EU–Morocco Green Partnership—a 2022 memorandum—frames cooperation on climate/energy but does not create green trade liberalisation or taxonomy/ETS linkage. Regionally, Morocco ratified the AfCFTA in April 2022. There is no explicit national carbon tax or ETS in force; OECD effective-carbon-rate diagnostics indicate pricing occurs mainly via fuel excises and is offset by fossil-fuel support.

Morocco does not currently operate a carbon tax or emissions trading system. The updated NDC (2021) commits to reducing GHG emissions by 45.5% by 2030 compared to BAU, with international support, but no domestic carbon pricing instruments are in place. Morocco has explored options for carbon markets, including feasibility studies with the World Bank’s Partnership for Market Readiness, but these have not been translated into legislation. There is also no carbon budgeting system.

"The National Strategy for Sustainable Development (2025–2035) provides a comprehensive roadmap across energy, water, agriculture, transport, digitalization, legal reform, and sustainable financing. A national climate committee, chaired by the head of government, oversees sectoral and regional implementation. Progress and alignment are tracked through a digital monitoring platform with biennial reviews covering key indicators and governance milestones.

In April 2025 Morocco formally launched a national Circular Economy Roadmap process led by the Ministry of Energy Transition and Sustainable Development with UNIDO/EU support under SWITCH2CE. Government and partner documentation describe diagnostic work and stakeholder consultations to inform national measures on waste reduction, secondary materials and MSME capacity. As of 2025, the roadmap is under development; no economy-wide CMUR target or national circular-procurement standard has been adopted, though existing waste strategies and programmes are being referenced in the roadmap process.

Policy instruments emphasise public-transport electrification and tighter vehicle standards, alongside substantial rail investments. Morocco has implemented Euro-6/VI emission standards in stages; authorities announced a two-year postponement for certain categories in December 2024, keeping phased enforcement rather than a uniform immediate mandate. Cities have expanded electric/BRT and tram systems (e.g., Marrakech BRT/e-buses), and national rail policy includes a 430-km Kenitra–Marrakesh high-speed line with financing and rolling-stock orders for network expansion to 2030/2040. Incentives for EVs exist (e.g., circulation-tax exemptions; targeted customs/VAT reliefs), but no national law sets 2030 full-electrification targets across public, private and freight transport, nor guarantees nationwide charging coverage by a fixed date.

"Morocco aims to generate 52% of its electricity from renewables by 2030 and 80% by 2050, supported by a 2025 plan to double installed solar, wind, and green hydrogen capacity to 20 GW. The Green Hydrogen Offer provides tax and customs incentives. Fossil fuels continue to be used in industry and transport. The focus remains on electricity; there is no formal target yet for 90% renewable use in final energy.

"The African Development Bank (AfDB) is contributing €301 million to Morocco for green job creation and climate resilience projects. Through the PAFE-Emplois programme, entrepreneurship and SME support is provided to youth and women. Sector-specific training initiatives are being deployed in renewable energy and sustainable agriculture. A formal national just-transition strategy is not yet finalized, and inter-ministerial coordination remains nascent

Morocco is advancing analytical and programmatic bases for a just transition. Tools such as the Just Transition Assessment Model (JTAM-Morocco) (developed with international partners) enable scenario analysis of employment and distributional impacts. An EU-supported programme on economic instruments for NDC implementation includes social-inclusion components, and national energy/employment strategies reference skills and job creation in clean sectors. Institutional coordination involves the planning and labour portfolios alongside energy and environment. A single, binding national just transition framework specifying sector-by-sector benefit-sharing rules, worker reskilling guarantees, and implementation mandates has not yet been adopted.

MSMEs are supported under the National Integrated Program for MSMEs, which includes access to finance, training, and innovation support. The Caisse Centrale de Garantie (CCG) manages green credit lines with international partners (e.g., EBRD, AfDB) targeting clean energy and resource efficiency for small firms. Social enterprise does not yet have a distinct legal form, though discussions are ongoing within the framework of the Social Solidarity Economy law under preparation. Pilot programmes (e.g., UNDP’s Green MSME initiative) support capacity building and access to finance.

"Morocco is implementing a digital, climate-adaptive social protection platform. The World Bank is financing a $70 million project to enhance the National Population and Unified Social Registries. More than half of the population now benefits from the Direct Social Benefit program, with remote enrollment and climate vulnerability targeting capabilities. The government plans to extend coverage to eight programs by 2028, linking social protection with climate resilience and inclusive growth objectives.

Morocco’s most recent formal National Biodiversity Strategy and Action Plan (NBSAP 2016–2020) set 26 national objectives and 159 actions aligned with the CBD’s 2011–2020 Strategic Plan and Aichi Targets, with a vision extending to 2030. Conservation policy is implemented through national parks, marine/coastal protected areas, forest and rangeland programmes, and invasive-species and pollution-control measures. The NBSAP is in the process of being updated to align with the Kunming–Montreal Global Biodiversity Framework; national monitoring and reporting tools are being adapted accordingly.

Morocco is advancing in environmental-economic accounting through collaboration with the UN SEEA programme and the African Development Bank’s natural capital initiatives. The Haut-Commissariat au Plan (HCP) has produced pilot accounts for water, forests, and energy, and has integrated environmental statistics into national planning. However, a permanent independent advisory body on natural capital with statutory powers does not exist. Integration into fiscal decision-making is still limited.

Agricultural policy is framed by “Génération Green 2020–2030”, launched in 2020 to consolidate Plan Maroc Vert achievements and pivot toward resilience, value-addition and human-capital outcomes. Complementary irrigation-efficiency programmes (PNEEI/PAPNEEI) continue to scale drip and network modernisation; international partners support climate-resilient irrigation and sector digitalisation. FAO country programming aligns with SDG-linked food-systems transformation, but there is no single, SDG-aligned national food-systems strategy with quantified overall ecological-footprint targets or a time-bound plan to phase out environmentally harmful subsidies.

Morocco mobilises nature-related finance through multiple channels: sovereign-backed renewable programmes (including green-bond issuances linked to utility-scale projects), EU-supported forest finance diagnostics exploring carbon markets, biodiversity credits and blended models, and agriculture/water investments under “Green Generation.” Public documents note work to update the national investment framework for NDC delivery and to track biodiversity-related public spending. Targeted, large-scale mechanisms channelling finance directly to Indigenous Peoples and Local Communities (IPLCs) are still emerging, and broad environmental tax-reform measures remain limited.

Morocco’s recovery and structural-reform agenda incorporates green components through international and domestic instruments. Under the IMF Resilience and Sustainability Facility (RSF), approved financing supports reforms in water infrastructure governance, electricity-market modernisation, climate-related risk management and environmental taxation. Complementary public-investment programmes expand renewable energy, desalination and water transfer systems (with clean-power integration), and industrial decarbonisation partnerships. EU/EBRD lines support SME greening and green credit. These measures are integrated within broader macro-reform and public-investment plans rather than a discrete, time-bound conditional green-stimulus package covering general support to firms and households.