Swap: Reforming support for butane gas to invest in solar in Morocco (French only)

This report by the International Institute for Sustainable Development (IISD) analyzes the financial and environmental impact of butane gas subsidies in Morocco and proposes a 'swap' reform. This strategy involves reducing fossil fuel subsidies and reinvesting the savings into clean energy technologies, specifically solar pumping for agriculture and solar water heaters for households, to facilitate a socially acceptable energy transition.

• Butane gas subsidies represent a significant financial burden for the Moroccan government, totaling USD 967 million in 2017, which accounted for approximately 3.9% of the general budget for that year.
• The butane gas subsidy is the only remaining fossil fuel subsidy in Morocco following a series of 'decompensation' reforms since 2014 that eliminated subsidies for gasoline, industrial fuels, and diesel.
• Butane gas is primarily used by households for cooking (81%) and water heating (18%), but it is also heavily utilized in agriculture for irrigation pumping, where small farmers often modify diesel engines to use butane to lower operating costs.
• A sudden removal of subsidies could increase poverty and deforestation, as low-income rural households might switch to biomass for cooking. To mitigate this, the report suggests a 'swap' model: reducing hydrocarbon subsidies and reinvesting savings into clean technologies.
• Solar pumping is a viable alternative for agriculture, with international costs (USD 0.043 per m3) already comparable to butane pumping (USD 0.042 per m3). However, adoption in Morocco is slowed by high installation costs and concerns that free energy might lead to groundwater overconsumption.
• The 'Shemsi' program aims to expand the national park of solar water heaters to 1.35 million m2 by 2020, providing a subsidy of MAD 2,000 per installation to cover 50% of the cost, though implementation has been delayed by the lack of a signed contract-program.
• To protect the most vulnerable, the report recommends targeted subsidies, such as limiting subsidies to small cylinders or using a Unified Social Registry (RSU), a digital platform launched in 2017 with World Bank support to identify eligible populations by 2019.
• There is a sharp divide between government agencies, which generally support the reform, and the public, which strongly opposes it due to the rising cost of living, as evidenced by a boycott of petroleum products starting April 20, 2018.
• The report suggests a gradual reform timeline rather than a 'big bang' approach to allow households and businesses to adapt. A previous government proposal suggested tripling the price of a 12 kg cylinder from 42 DH to 120 DH over four years.

APA

International Institute for Sustainable Development (n.d.). Swap: Reforming support for butane gas to invest in solar in Morocco (French only). https://www.iisd.org/system/files/publications/swap-morocco-fr.pdf

Chicago

International Institute for Sustainable Development. Swap: Reforming support for butane gas to invest in solar in Morocco (French only). n.d. https://www.iisd.org/system/files/publications/swap-morocco-fr.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Swap: Reforming support for butane gas to invest in solar in Morocco (French only) |url=https://www.iisd.org/system/files/publications/swap-morocco-fr.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndswap, author = {{International Institute for Sustainable Development}}, title = {{Swap: Reforming support for butane gas to invest in solar in Morocco (French only)}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/swap-morocco-fr.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }