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

The report identifies a significant gap between the high demand for green financing driven by Morocco's Nationally Determined Contribution (NDC) and the limited supply of tailored financial instruments for SMEs. While energy efficiency and renewable energy projects are well-covered, sectors like fisheries and sustainable housing are underserved. The study recommends improving the regulatory framework for ESCOs, introducing fiscal incentives, and designing new equity or guarantee mechanisms to catalyze green investment.

• Morocco's updated NDC creates substantial green financing demand, with mitigation actions requiring USD 38.8 billion and adaptation actions requiring USD 40 billion. SMEs are expected to implement approximately 40% of mitigation and 55% of adaptation actions, either directly or as subcontractors.
• The current green finance supply for SMEs is estimated at approximately USD 4.9 billion for the period 2019-2024, which is considered insufficient given the NDC requirements.
• Green finance is heavily concentrated in the industrial and agricultural sectors, leaving other high-potential areas such as fisheries, sustainable housing, and transport underserved.
• Available green financing instruments primarily target energy efficiency (EE) and renewable energy (RE), with a lack of funding for working capital and greenfield projects.
• SMEs face significant barriers to accessing green finance, including low awareness of available offers, undercapitalisation (often requiring 20% equity), and the long payback periods associated with green investments.
• The European Union's Carbon Border Adjustment Mechanism (CBAM) acts as an external economic incentive for Moroccan SMEs to decarbonise their operations to maintain competitiveness in EU exports.
• The Moroccan government's State Exemplarity Pact promotes sustainable public procurement, offering SMEs opportunities in energy efficiency, water saving technologies, and green industrial zone development.
• The study identifies nine priority sectors with high greening potential: agriculture, forestry and fisheries; trade and repair of motor vehicles; manufacturing; extractive industries; construction; water/waste management; electricity/gas/steam production; human health/social work; and transport/storage.
• Regulatory barriers include an inefficient ESCO accreditation process and unfavourable regulations regarding the self-generation of electricity for companies.
• The report suggests two potential new financial instruments: a credit guarantee facility to reduce risk for banks and an equity fund with a first-loss provision to leverage private investment.

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} }