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Global | Publikation | October 2015
Morocco submitted its INDC to the United Nations Framework Convention on Climate Change (UNFCCC) on 5 June 2015. Morocco’s INDC stated that it aims to reduce greenhouse gas (GHG) emissions by 13 per cent compared to business as usual (BAU) emissions projections by 2030.
In addition to the unconditional target of 13 per cent, Morocco’s INDC states that an additional reduction of 19 per cent is achievable under certain conditions, which would bring the total GHG to 32 per cent below the BAU emissions levels by 2030. Meeting this conditional target requires an overall investment estimated at USD 45 billion between 2015 and 2030, of which USD 35 billion is conditional upon international support through new climate finance mechanisms, such as the Green Climate Fund and the conclusion of a legally-binding agreement under the UNFCCC.
The target will cover the energy, industrial processes, agriculture, waste and land use, land use change and forestry sectors. Morocco intends to achieve the conditional target through economy-wide actions based on strategies and 54 action plans covering all sectors.
Key strategies and action plans include the following:
It is worth noting that Morocco will host the Conference of the Parties to the UNFCCC (COP22) in December 2016.
The full text of Morocco’s INDC submission can be accessed here.
Carbon pricing instruments have not yet been implemented in Morocco. However, the country is actively exploring carbon pricing instruments under the Partnership for Market Readiness (PMR). Morocco submitted an extensive Market Readiness Proposal (MRP) to the PMR Secretariat in January 20141 for the development of a sectoral crediting instrument for electricity generation, cement production, and phosphates extraction and processing sectors2 as a tool to achieve GHG emission reduction objectives in a cost-effective and accountable way.
Morocco is aiming to establish a domestic carbon market instrument and integrate with the international market (with a potential inclusion of sectors under the EU ETS) between 2018 and 2020.3 This crediting instrument under the PMR is seen as a stepping stone towards another market-based instrument.4
On 23 April 2015, a voluntary carbon offset programme was launched by the Mohammed VI Foundation for Environmental Protection. This programme was introduced to raise awareness about the greenhouse effect5 and consists of:
Some examples of the carbon offsetting projects that have already been implemented include:
Morocco has the most ambitious renewable energy programme in the MENA region.9 It aims to source 42 per cent (equivalent to approximately 6,000MW) of its total energy mix from solar (2000MW), wind and hydroelectric sources (2000MW) by 2020.
Major renewable energy projects in Morocco include:
In parallel with this energy programme, the Moroccan Government has made increased efforts in recent years to facilitate the development of the renewable energy sector through a number of legal reforms, including:
Energy efficiency forms a major part of Morocco’s National Energy Strategy for Renewable Energy and Energy Efficiency, aiming to save 12 to 15 per cent of energy by 2020 and 20 per cent by 2030 of total energy consumption.
The introduction of the following laws and the establishment of the following institutions has facilitated greater energy efficiency:
By adopting an aggressive target for renewable energy and improving energy efficiency (42 per cent and 12 percent by 2020 respectively), lowering fossil fuel subsidies and creating an attractive legal framework for investors, Morocco is facilitating private sector investment in clean energy and low-carbon growth. The country is becoming recognised as a solar power innovation hub, with its renewable energy investment growing from USD 297 million in 2012 to USD 1.8 billion in 2013.16
Climate change financing comes from a range of bilateral and multilateral partners.17 The biggest donors are the European Commission and France with substantial resources from the African Development Bank, World Bank and European Investment Bank. External finance for climate change is provided bilaterally and through global funding mechanisms, and is delivered as grants and loans, as well as technical assistance to projects and government departments. The major instruments are the Clean Technology Fund (CTF) and GEF,18 being the most important current funds for climate change in Morocco.19 By way of example, Morocco secured a USD 125 million loan from the World Bank and a USD 23.95 million loan from the CTF to support its state-owned electricity and water company (ONEE) to develop its first set of three mid-size decentralised solar photovoltaic plants as part of the Clean and Efficiency Project.
In November 2014 four international financial institutions teamed up with the European Union to promote sustainable energy investments in Morocco through the launch of a Sustainable Energy Financing Facility (MorSEFF): the European Bank for Reconstruction and Development, the Agence Française de Dévelopement (AFD), the European Investment Bank and Kreditanstalt für Wiederaufbau (KfW). The €80 million facility will provide loans via a group of local participating banks and financial institutions for energy efficiency and small-scale renewable energy investments by private companies in Morocco.
The Moroccan government is not, however, solely relying on donors and foreign investors. Under the law creating MASEN and the agreements concluded between the State and MASEN regarding each project, the Moroccan government undertakes to guarantee the financial sustainability of the Solar Plan on a project-by-project basis. NOORo Ouarzazate II and III projects’ debt is entirely refinanced by MASEN using funds secured by MASEN from international lenders, including the African Development Bank, the World Bank, the European Commission, the CTF, the AFD and KfW.20
Partnership for market readiness (PAR), Ninth Partnership Assembly Meeting, Cologne, May 25-27, 2014
Crediting-Related Activities under the PMR, August 2015
Crediting-Related Activities under the PMR, August 2015
Morocco carbon footprint tool and carbon database, November 2013
Morocco carbon footprint tool and carbon database, November 2013
Renewable energy in Morocco, Norton Rose Fulbright - May 2012
Ibid
Ibid
Ibid
Ibid
Ibid
100% Renewable energy: Boosting development in Morocco, World Future Council
Climate Finance Is Flowing, but It Isn’t Enough – Yet, The World Bank - November 30, 2014
Climate Change Financing and Aid Effectiveness - Morocco Case Study, Peter Grant - July 13, 2011
Ibid
Ibid 10
ACWA Power closes $2 billion financing on 500MW of Morocco CSP projects, PV Tech - May 21, 2015
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The current volatile and unpredictable economic climate creates challenges for businesses.
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