Scoping study: Development of a financing offer relating to the green economy in Morocco

This scoping study, prepared by Enviro Consulting International for FSD Africa, analyzes the supply and demand for green finance targeting small and medium-sized enterprises (SMEs) in Morocco. It identifies a significant gap between the ambitious climate targets set in Morocco's Nationally Determined Contribution (NDC) and the available financial instruments, which are currently concentrated in the industrial and agricultural sectors and primarily focused on energy efficiency and renewable energy. The report recommends strengthening the regulatory and tax frameworks, improving SME governance, and designing new instruments such as a credit guarantee facility or a dedicated green equity fund to catalyze the transition to a green economy.

• Morocco's updated Nationally Determined Contribution (NDC) requires substantial investment, with mitigation actions needing USD 38.8 billion and adaptation actions needing USD 40 billion. SMEs are expected to implement approximately 40% of mitigation actions and 55% of adaptation actions, either directly or as subcontractors.
• There is a significant gap between the demand for green finance and the current supply. While the NDC implementation requires USD 78.8 billion over eight years, the available green finance offer for SMEs is estimated at approximately USD 4.9 billion for the period between 2019 and 2024.
• Current green finance supply is heavily concentrated in the industrial and agricultural sectors, leaving other high-potential areas such as fisheries, sustainable housing, transport, and health underserved.
• Available green financial instruments primarily target energy efficiency (EE) and renewable energy (RE) projects, creating a need to expand coverage to other green components like circular economy, water saving, and carbon sequestration.
• SMEs face several barriers to accessing green finance, including low awareness of available offers, inherent structural weaknesses such as undercapitalization (with some offers requiring 20% equity), and the longer payback periods typical of green investments.
• The report identifies nine priority sectors with high greening potential: Agriculture, forestry and fisheries; Trade and repair of motor vehicles and motorbikes; Manufacturing industry; Extractive industries; Construction; Water production and distribution, sanitation, waste management and remediation; Production and distribution of electricity, gas, steam and air conditioning; Human health and social work; and Transport and storage.
• The European Union's Carbon Border Adjustment Mechanism (CBAM) is identified as a significant external driver for Moroccan SMEs to decarbonize, particularly for those exporting energy-intensive goods like cement, fertilizers, iron, steel, and aluminium.
• Public procurement is a major potential lever for greening SMEs through the State Exemplarity Pact, although the system currently favors large enterprises (LEs), with 73% of procurement from state and local authorities going to only 700 companies.
• The report suggests two primary scenarios for new financial instruments to address the gap: a credit guarantee facility to reduce bank risk and improve bankability, or a dedicated green equity fund with OPCC status to address SME undercapitalization.
• Technical capacity is a critical bottleneck; there is a lack of local expertise in the green economy among both SMEs and financial institutions, leading to a recommendation for a technical assistance facility.

APA

FSD Africa (n.d.). Scoping study: Development of a financing offer relating to the green economy in Morocco. https://fsdafrica.org/wp-content/uploads/2025/05/Morocco-Green-Fund-08.05.23.pdf

Chicago

FSD Africa. Scoping study: Development of a financing offer relating to the green economy in Morocco. n.d. https://fsdafrica.org/wp-content/uploads/2025/05/Morocco-Green-Fund-08.05.23.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Scoping study: Development of a financing offer relating to the green economy in Morocco |url=https://fsdafrica.org/wp-content/uploads/2025/05/Morocco-Green-Fund-08.05.23.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafricandscoping, author = {{FSD Africa}}, title = {{Scoping study: Development of a financing offer relating to the green economy in Morocco}}, institution = {FSD Africa}, url = {https://fsdafrica.org/wp-content/uploads/2025/05/Morocco-Green-Fund-08.05.23.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }