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Agadir – The World Bank Group pointed to Morocco’s growing efforts to adopt a “whole-of-government” approach to climate policy following years of droughts and climate-related shocks that affected key sectors of the economy.
According to the World Bank, Morocco elevated climate change to its national policy priorities after facing a series of climate shocks and droughts between 2018 and 2023, which impacted cash crop exports, hydropower generation, and drinking water availability.
The report explains that Morocco’s Ministry of Economy and Finance (MEF) prioritized a coordinated climate policy approach supported by the World Bank Group through a Climate Project-for-Results program and technical assistance financed by the Climate Support Facility.
Morocco also climbed to sixth place in the 2026 Climate Performance Index, ranking alongside countries such as Denmark, the United Kingdom, and Chile, according to the report.
The document further notes that Morocco adopted the Green Generation Strategy aimed at unlocking job creation opportunities throughout agricultural value chains.
“Morocco climbed to the 6th position in the 2026 Climate Performance Index, besides Denmark, UK, Chile and far from peers. It also adopted the new Green Generation Strategy to unleash the potential of job creation all along the agricultural value chains,” the World Bank stated.
Climate change shaping employment
The report stresses that climate change is increasingly affecting employment in Morocco, particularly in rural areas.
Citing the World Bank Group’s Climate Change and Development Report (CCDR), the text notes that 79% of Morocco’s poor population lives in rural areas, making them especially vulnerable to droughts and water scarcity.
Agriculture employs nearly 30% of Morocco’s workforce and more than 80% of the rural population, with a large share of livelihoods depending on rainfall for both food production and income.
The report warns that rural job opportunities are expected to decline in the coming decades if climate adaptation measures are not strengthened, especially amid recurring droughts and structural water stress.
Energy transition supports job creation
The report also presents Morocco’s clean energy transition as a major component of its climate agenda and economic strategy.
According to the World Bank, investments linked to the energy transition could generate around 28,000 net jobs annually across the economy by 2030, representing nearly 9% of Morocco’s estimated yearly job shortfall of 300,000 jobs.
The report adds that the transition is important for maintaining Morocco’s competitiveness and ensuring access to European markets, particularly in light of the European Union’s Carbon Border Adjustment Mechanism (CBAM), which favors industries with lower carbon footprints.
While acknowledging Morocco’s progress in renewable energy, hydropower, drip irrigation, and disaster-risk management initiatives, the report says climate policy implementation still faces challenges despite two decades of reforms and public investments.
Morocco was among the first countries to submit Nationally Determined Contributions (NDCs) under the United Nations Framework Convention on Climate Change in 2016, the report notes.
However, it adds that implementation efforts have remained constrained by issues including limited institutional collaboration, contestability, and innovation.
New climate unit established
According to the report, the Ministry of Economy and Finance established a Climate Unit in early 2025 tasked with advancing climate public finance reforms and strengthening coordination across government institutions.
The unit operates as a flexible committee rather than a standalone department, coordinating monthly consultations with departments beyond the ministry itself.
The report says this structure helped reduce siloed administrative practices and competition between existing commissions.
One of the first outcomes highlighted in the report is the alignment between Morocco’s updated NDCs 3.0 framework and the 2026-2028 national budget.
For the first time, the 2026 Finance Law includes information on public financing dedicated to climate NDCs for the 2026-2028 period, while also identifying financing gaps.
The report also notes that Morocco finalized new measures to “green” public procurement through a dedicated manual and climate tagging within its e-procurement platform.
Additional reforms mentioned include the drafting of a Green Sovereign Bond framework and the review of Environmental, Social, and Governance (ESG) reporting standards for state-owned enterprises.
“Country budgets are a financial mirror of public policy. That is why success can be found in putting a concrete budget behind climate NDCs, enabling Morocco to turn ambition into an executable roadmap and reality,” the World Bank concluded.
