Morocco, a country blessed with abundant renewable energy resources, has the potential to play a pivotal role in climate mitigation, according to a recent report by the International Monetary Fund (IMF), published on October 27, 2023.
High Emissions in the Energy Sector
In 2018, the energy sector was responsible for a substantial 65.1% of Morocco’s total greenhouse gas emissions. This overreliance on fossil fuels necessitates a shift towards cleaner energy sources.
Abundant Renewable Resources
Morocco enjoys some of the world’s most extensive renewable energy resources. It boasts around 3,000 hours of annual sunshine and an average wind speed of 5.3 meters per second, covering over 90% of the country’s territory.
Reducing Fuel Dependency and Boosting Competitiveness
Harnessing these renewable resources can significantly reduce Morocco’s reliance on imported fuels. This transition can also position Morocco advantageously in neighboring markets that are embracing green energy solutions, fostering economic growth and job opportunities.
Transitioning to a Green Future
The Morocco Country Climate and Development Report for 2022 predicts that over 85% of the country’s electricity could come from renewable sources by 2050, a substantial increase from the 20% reported in 2021. This shift could generate an estimated 28,000 jobs annually, resulting in 140,000 jobs within five years, primarily in the renewable energy and efficiency sectors. This projection excludes potential job creation in areas like green hydrogen, electric mobility, and green industrial investments.
Private Sector Investment Crucial
Realizing these opportunities necessitates significant investments, primarily from the private sector. However, attracting private investments hinges on continued reforms in Morocco’s electricity market, ensuring equitable access to transmission and distribution networks at regulated tariffs.
The Role of the Energy Sector in Climate Mitigation
Morocco’s climate change strategy revolves around its energy sector, with ambitious goals to expand renewable electricity generation from 17.6% in 2020 to 52% by 2030, as outlined by the International Energy Agency.
Building a Climate-Resilient Energy Transition
To secure a climate-resilient energy transition, the first step involves establishing a dedicated sectoral plan for the energy industry.
IMF’s Support for Morocco’s Climate Resilience
On September 28, 2023, the IMF’s Executive Board approved an 18-month arrangement for Morocco under the Resilience and Sustainability Facility (RSF), amounting to $1.32 billion. This initiative aims to assist Morocco in addressing climate vulnerabilities, enhancing resilience, and promoting decarbonization.
Financial Investment Required for a Green Transition
The report highlighted that steering Morocco towards a low-carbon future by the 2050s necessitates a significant increase in the power sector’s installed capacity, requiring an estimated investment of $46 billion in present value terms.
