World Bank: Morocco Needs to Invest $78 Billion by 2050s For Low-Carbon Future

Rabat – Morocco should invest $78 billion (MAD 860 billion) by the 2050s to meet net zero goals and adapt to the lingering effects of climate change, according to the World Bank.

According to the latest World Bank report titled “Morocco Country Climate and Development Report,” the country’s large-scale investments must focus on climate mitigation and adaptation.

Breaking down the investments over the next three decades, the report suggested that Morocco should invest $23.3 billion between 2022 and 2030 with two-thirds of the investments focusing on climate adaptation.

These measures are expected to be financed by public funds with “room for attracting private operators on specific interventions” including seawater desalination and climate-resilient agriculture.

The rest of the investments are recommended to be mobilized over two phases, $25 billion in the 2031-2040 period and $29.5 billion in the following decade.

The investment must be directed to support vulnerable populations in rural areas, the report indicated, adding that water scarcity and lower yield production are expected to lead to the climate migration of 1.9 million people, or 5.4% of the Moroccan population, by 2050.

While the climate adaptation efforts are likely to limit climate migration from rural areas, the World Bank recommends the diversification of job opportunities in climate-impacted areas to tackle the issue.

In addition to providing recommendations for the financing of climate-related initiatives, the report identified three priority areas for climate action in Morocco. The bank called for tackling water scarcity and droughts, reinforcing resilience to floods, and pushing for a decarbonized economy.

Given that Morocco is approaching the absolute water scarcity threshold of 500 cubic meters of water per person per year, the country is one of the world’s most water-stressed countries, the report stated.

The frequent and severe droughts experienced over the past decades have shown that the country’s economy and food security are highly impacted by climate conditions. According to the World Bank, a 25% reduction in water supply would lead to a 6.5% drop in the country’s GDP.

Floods further add pressure on the country’s economy with the 20 major flooding events recorded in Morocco over the past decades causing direct losses averaging around $450 million per year.

The rise in sea levels is expected to increase direct losses with more than 65% of the Moroccan population and 90% of national industries located in coastal areas being threatened by major floodings in coming years.

However, the report argued that Morocco can limit the cost of water scarcity and flooding by investing in the country’s water infrastructure, shifting consumer behavior, and developing disaster risk management frameworks.

These measures must also be reinforced by the decarbonization of the national economy by the 2050s, the report stated.

In addition, the report added that the energy shift towards renewables is forecasted to deliver over 85% of electricity needs by 2050. The shift hopes to create at least 28,000 jobs per year in renewable and energy efficiency sectors.

The figure excludes jobs from green hydrogen, e-mobility, and other low-carbon industrial investments.

The decarbonization efforts are expected to cost around $53 billion over the next three decades with the private sector likely to invest the most in such measures, says the World Bank.

These investments would bring “positive net economic impact,” the report indicated, adding that the measures would cut Morocco’s fossil fuels and ammonia imports, increase the country’s energy security, and reduce air pollution.

They would further turn Moroco into a hub of renewable energy and green hydrogen as well as an exporter of green solutions to the European Union.

World Bank Managing Director of Operations Axel van Trotsenburg said this week during his first official visit to Rabat that “Morocco is already making impressive progress in its pursuit of a low-carbon future.”

The statement came as Morocco continues launching climate-related initiatives and strategies such as Green Generation for climate-resilient agriculture.

Echoing Van Trotsenburg’s statement, World Bank’s Maghreb and Malta Country Director Jesko Hentschel stated that “Morocco can build on past efforts [to] embark on an ambitious transition to a resilient and low carbon future, where everyone is included.”