The Ministry of Economy and Finance, Bank Al Maghrib, the Moroccan Capital Market Authority and the Insurance and Social Welfare Supervisory Authority have mobilized to develop a common and concerted view to accelerate the green transition of the Moroccan financial sector. This shared vision is to be built on the major advances and achievements of the roadmap adopted in 2016 on the sidelines of COP22 held in Marrakech aimed at aligning the financial sector, in all its components, with the challenges of sustainable development.
In fact, Morocco's financial sector plays a strategic role in supporting the country's vision to combat climate change. This role is set to accelerate in the coming years to meet the growing need for financing green and climate projects. Indeed, according to the World Bank, investment needs between 2022 and 2050 are estimated at around $78 billion (Climate and Development Report for Morocco).
The preparation of the new strategy was based on an in-depth diagnosis, which revealed that climate financing flows mainly from the public sector, with mitigation measures, notably renewable energy production, dominating. On the other hand, adaptation measures, mainly carried out by the public sector, attract even less private funding, with the exception of the seawater desalination sector. The diagnostic also noted that the range of green financial instruments in Morocco is fairly comprehensive, although there is a mismatch between demand and supply for these products. The diagnosis also highlighted the fact that the development of green financing is impacted by the absence of a definition of green projects (taxonomy) and the lack of quality data to inform investor decision-making.
Thus, the new strategy has been built around 3 pillars of intervention comprising 9 strategic axes aimed primarily at identifying levers for accelerating the mobilization of private climate financing and strengthening climate risk management within the financial sector.
To put this strategy into practice, appropriate governance arrangements will be established, involving both public and private sector stakeholders. The governance bodies will help meet the various challenges involved in deploying this strategy, and to monitor the progress of the actions identified in a proactive and concerted manner.
Thus, the adoption of the climate finance strategy reflects a strong commitment on the part of the Moroccan financial authorities to help mobilize the private capital needed to make a success of our country's green transition and combat the effects of climate change.
Download the report on the development strategy for Climate Finance to 2030 (in french)