Mozambique

Mozambique’s core planning documents with “green economy” content are the National Climate Change Strategy 2013–2025 and the National Adaptation Plan 2023–2030, which both frame climate resilience and low-emission development actions. The Adaptation Plan explicitly mentions the earlier Green Economy Action Plan (2013–2030) as part of the policy foundation. The country’s updated Nationally Determined Contribution (2023) sets adaptation and mitigation measures but economy-wide net-zero commitments and legally binding delivery mechanisms are not yet laid out in a single, current “green economy” strategy through 2050. Recent government economic planning (annual Economic and Social Plan and State Budget reports) focuses on recovery, social protection and infrastructure, with environment and conservation as program areas rather than an integrated, legally anchored green-economy plan.

Mozambique promotes multi-stakeholder engagement on sustainable development through the National Council for Sustainable Development (CONDES) and public consultations linked to national planning, but these remain mostly ad hoc and concentrated in small committees. Gender inclusion has advanced in public governance, with a National Gender Policy and parliamentary quotas for women, yet there is no legislation requiring employee representation or gender targets on corporate boards. ESG disclosure by companies is voluntary, and no national incentives exist to align corporate governance with the SDGs.

Public consultation is mandated in environmental decision-making and in local planning. The Environmental Impact Assessment Regulation (Decree 54/2015) requires public disclosure and consultation during project assessment. The Environmental Framework Law establishes participation principles. Beyond the environmental domain, local consultative councils at district and locality level are part of the state’s decentralised system (Law on Local State Bodies and associated guidance published in the Government Gazette), providing structured community input into district development plans. In practice, coverage and depth vary by sector and location, and systematic impact assessments focused on marginalised groups are uneven.

Mozambique has engaged in natural capital accounting with support from the World Bank’s WAVES partnership and through sectoral environmental-economic accounts work, but an official comprehensive national wealth framework that integrates human, social, natural, and produced/financial capital into core planning is not yet established. National statistics focus on conventional indicators; beyond-GDP accounts are used selectively in projects and policy notes rather than embedded across budgeting and planning cycles.

The Green Economy Action Plan 2020–2024 calls for fiscal instruments to support a green economy, but no national green finance strategy or incentives have been implemented. The Bank of Mozambique performs limited stress tests with IMF support, focusing on financial—not climate—risks. Some commercial banks have voluntarily issued green products, but no green taxonomy or supervisory climate-risk framework exists.

Still no formalized framework for reviewing the environmental sustainability of its fiscal and monetary policies. The nation's public finance is heavily constrained by high domestic and public debt, and a significant portion of its budget depends on international donors and partners, limiting its fiscal autonomy.

In 2025, the government introduced a draft decree to establish a legal framework for issuing sustainable bonds—including green, blue, and social bonds—aimed at financing climate and environmental projects.

Mozambique's 2025 Economic and Social Plan and State Budget (PESOE) discusses economic recovery and fiscal reinforcement, but it does not detail any established processes for green fiscal or monetary policy reviews. The country's central bank, Banco de Moçambique, has not yet integrated climate risks into its monetary policy decisions or financial stress testing. Mozambique's recent economic focus has been on managing its debt, which increased to 94.2% of GDP in 2024, and on resuming large-scale liquefied natural gas (LNG) projects. Despite endorsing the Friends of Fossil Fuel Subsidy Reform group, the country's public finances are still heavily influenced by its commitment to fossil fuel projects.

Mozambique participates in several regional and preferential trade frameworks that include general sustainable development language but lack binding green trade disciplines. Under the African Continental Free Trade Area (AfCFTA), ratified in January 2023, Mozambique is part of a continental effort to eliminate trade barriers and promote intra-African trade, though the agreement does not yet include enforceable environmental goods/services liberalisation or green taxonomy interoperability. [Mozambique...Agreements] Mozambique also benefits from the EU’s Everything But Arms (EBA) arrangement under the Cotonou Agreement, and from the U.S. African Growth and Opportunity Act (AGOA), which offer duty-free access for selected products but do not contain comprehensive sustainable-development chapters. A preferential trade agreement with Malawi and ongoing negotiations with Zambia and the EU (via SADC) are in place, but none include UNFCCC/CBDR-linked market-access exemptions. There is no national carbon pricing mechanism or emissions trading system in force, and no formal green taxonomy interoperability with trading partners.

Mozambique has no domestic carbon tax or emissions-trading system and has not legislated carbon budgets. It participates in international offset schemes, notably REDD+ Emissions Reduction Purchase Agreements with the World Bank’s Forest Carbon Partnership Facility, aiming to reduce about 10 million tCO₂ by 2024.

The new Just Energy Transition Strategy, approved in 2023, marking a significant milestone for the country. Presented at COP28, it aims to guide the development of the country's energy sector toward a more sustainable and equitable future. It provides an overarching vision for the energy sector, outlining a path for both gas monetization and a significant expansion of renewables. The new JETS includes specific targets, such as increasing renewable energy capacity. It also details a strategy to use gas as a transition fuel while scaling up solar, wind and hydropower.

The country’s National Climate Change Adaptation and Mitigation Strategy 2013-2025, criticized for its shortcomings, is being reviewed as the country's new Nationally Determined Contribution (NDC) is developed.

Mozambique has policies and programmes relevant to circular economy aspects, especially in waste management and plastics. The National Strategy for the Development of Solid Waste Management (2018-2028) aims to improve waste collection, recycling capacity and reduce environmental pollution. In 2024, the government ratified a ban on single-use plastic bags and made moves toward extended producer responsibility in some provinces. There have been pilot initiatives in coastal provinces for plastic waste collection and informal sector inclusion. However, there is no economy-wide roadmap titled “Circular Economy Strategy” with quantified Circular Material Use Rate (CMUR) targets, nor nationwide public procurement mandates or standards for reuse/repair.

Mozambique has made some progress toward green transport and mobility. Maputo metropolitan area has undertaken public transport upgrading, including bus fleet renewal; there’s also policy interest in shifting toward cleaner fuels, and adoption of emission standards for imported used vehicles (regulations to limit age and emissions). In recent years, some electric mobility pilot projects (e.g. solar-powered charging points) have been announced, especially for public-utility or transit fleets. However, there is no national law or framework that sets 2030 targets for full electrification across public, private and freight transport; EV incentives are minimal; charging infrastructure is sparse outside urban centers; private vehicle emission standards are weak or poorly enforced.

Mozambique's previous clean energy target was for 62% of the country's energy mix to be generated by renewables by 2030. This was a pledge made at the COP26 World Leaders Summit in 2021. The current target is more detailed and ambitious, as outlined in the Just Energy Transition (JET) Strategy approved in December 2023. The new strategy aims to increase the renewable energy share in the country's generation capacity to over 9,472 MW by 2030. This is a significant jump from the previous 2,900 MW capacity. The exact new target is not a single number but a more detailed and ambitious set of goals outlined in the Just Energy Transition Strategy, like: increase the country's renewable energy generation capacity to over 9,472 MW by 2030 (a jump from the approximately 2,900 MW it had in 2024), and achieve universal energy access by 2030.

Continued disconnect between ambitious policy frameworks and concrete, well-funded implementation.

The country's National Employment Policy Implementation Plan 2021-2024 has expired without achieving widespread green jobs creation.

While the new Just Energy Transition Strategy (2023) has a strong focus on job creation, particularly in the renewable energy and green industrialization sectors, the mechanisms for a "just" transition for workers in the fossil fuel and informal sectors are not yet fully operational. The country's economy is still heavily reliant on large-scale fossil fuel projects, which receive significant international investment and dominate the jobs agenda.

The recent launch of an ICAT project in 2025 to strengthen climate transparency frameworks and the exploration of carbon markets is a positive step. While this may indirectly support green jobs by providing a better understanding of climate-related economic activities, it is not a direct green jobs creation program.

Mozambique’s Country Partnership Framework and CCDR emphasize inclusive development and climate resilience, particularly in vulnerable regions such as Cabo Delgado. The CPF supports green job creation and women’s empowerment, while the CCDR outlines priorities for protecting the most vulnerable. However, Mozambique does not yet have a unified national just transition framework with sectoral guidance or benefit-sharing mechanisms.

SME support remains limited. Programmes such as BRILHO (off-grid renewable energy market development, 2019–2025) and MozTrabalha (green-jobs promotion) provide donor-funded financing and training for small enterprises. There is no dedicated legal form for social enterprise and no national programme for greening MSMEs beyond these projects.

While the country's national social protection strategy, the National Strategy of Basic Social Security, has recently concluded its 2016-2024 cycle, its core programs are being restructured and reinforced. In 2025, the government, with support from the World Bank, launched the Mozambique Human Development Integrated Project (INTEGRA). This project is a key example of an innovative approach, using schools as hubs to deliver a range of services including health, nutrition, and social protection to vulnerable children and their families. It explicitly links social services with climate-resilient infrastructure.

Furthermore, Mozambique's social protection system is increasingly being used as a response mechanism to a series of climate-related disasters and ongoing conflict. The government, with support from partners like the World Food Programme (WFP), is implementing a shock-responsive social protection (SRSP) system. This involves using existing social protection programs to deliver humanitarian assistance, such as cash transfers, to populations affected by cyclones and drought.

However, the country continues to be in multiple crises, including conflict, climate shocks, and a persistent funding shortfall for humanitarian aid. While there are some pilots and a clearer strategic vision for integrating social protection with climate resilience, the system still lacks a nationwide framework.

Mozambique’s National Biodiversity Strategy and Action Plan (2015–2035) is the main national plan for conservation, aligned to international biodiversity goals and with national targets. The National Administration of Conservation Areas (ANAC) reports that conservation areas cover roughly a quarter of national land; independent profiles cite about 26–29% of land as protected. Marine protection remains more limited (around 2% of marine waters protected), though the government has signalled intent to expand coverage and has participated in processes to align the NBSAP with the post-2020 global biodiversity framework.

Mozambique is advancing natural-capital accounting through its Natural Capital Programme (launched 2018) with African Development Bank and WWF support. The National Institute of Statistics began a multi-year project in 2021 to compile SEEA-aligned environmental-economic accounts, including wetlands mapping and forest inventories, with pilot accounts expected by 2024–25. An independent advisory body is under discussion but not established.

Mozambique’s agriculture policies include promotion of sustainable practices and climate resilience, especially through programmes supported by international partners. The Agricultural Development Policy (2010-2019) has been succeeded by programmes under the current government emphasizing climate-smart agriculture, soil conservation, and irrigation expansion. Mozambique participates in the Food Systems Summit national dialogue and has drafted frameworks for reducing post-harvest losses. But there is no unified national food-systems strategy aligning with SDGs 2 & 12 with quantified ecological-footprint targets or subsidy-phase-out schedules. Domestic harmful subsidies (e.g. fossil fuel, fertilizer) are still in place and reform is gradual.

Conservation finance is anchored by the Foundation for the Conservation of Biodiversity (BIOFUND) endowment and by government-partner programmes that channel funds to protected areas and community initiatives. Mozambique has developed green finance instruments including climate-smart agriculture programs, green infrastructure investments, and public-private partnerships. The CCDR estimates $37.2 billion in investment needs for climate resilience by 2030. International projects (for example, World Bank–supported conservation and restoration operations) include windows for community-based activities and institutional strengthening. However, fossil fuel subsidies persist, and there is limited evidence of IPLC-targeted national finance mechanisms or comprehensive fiscal reform. Broader fiscal reforms to remove environmentally harmful subsidies or to introduce wide-ranging environmental taxation are not prominent in current budget laws or policy statements.

Pandemic-era and recent recovery efforts centre on macro-stabilisation, social protection, and restoring growth. Government Economic and Social Plan reports track execution against annual recovery priorities; the World Bank’s economic updates describe limited fiscal space and a focus on resilience after cyclones, conflict and COVID-19. Newer government communications point to an Economic Recovery and Growth Plan sized at several billion US dollars, but public detail on green conditionality or climate-specific stimulus is scarce. Overall, green content appears embedded within sector projects (e.g., conservation, climate adaptation) rather than through a dedicated, large-scale green stimulus package.