Morocco: Fuel Subsidy Reform Designed to Support a Just Transition to Renewable Energy

This case study by the World Resources Institute examines Morocco's 2014 fossil fuel subsidy reform, which aimed to reduce government spending on fossil fuels and reinvest those savings into renewable energy to enhance energy independence and meet climate goals.

• Morocco implemented a phased reduction of fossil fuel subsidies starting in January 2014, ending subsidies for gasoline and fuel oil while cutting diesel subsidies. This resulted in a significant decrease in spending from 42 billion dirhams ($5.2 billion) in 2011 to 10.7 billion dirhams ($1.1 billion) in 2016.
• To protect poor and rural populations, the government maintained subsidies for butane, which is used for cooking, lighting, and agricultural irrigation. However, this subsidy remained costly, accounting for nearly 4% of the government budget in 2017, and the document notes a lack of viable renewable alternatives like solar stoves at the time.
• The reform supported Morocco's climate goals and energy independence, contributing to a renewable electricity capacity of 2,696 MW (34% of total installed capacity) by 2019. Renewable energy was projected to create 26,000 jobs by 2020 and up to 500,000 jobs by 2040.
• The transition was facilitated by the creation of new institutions, including the Moroccan Agency for Energy Efficiency, the Moroccan Agency for Solar Energy, and the public energy service corporation Société d'Investissements Énergétiques (SIE).

APA

World Resources Institute (2021). Morocco: Fuel Subsidy Reform Designed to Support a Just Transition to Renewable Energy. https://www.wri.org/snapshots/morocco-fuel-subsidy-reform-designed-support-just-transition-renewable-energy

Chicago

World Resources Institute. Morocco: Fuel Subsidy Reform Designed to Support a Just Transition to Renewable Energy. 2021. https://www.wri.org/snapshots/morocco-fuel-subsidy-reform-designed-support-just-transition-renewable-energy.

Wikipedia

{{cite report |author=World Resources Institute |title=Morocco: Fuel Subsidy Reform Designed to Support a Just Transition to Renewable Energy |date=1 April 2021 |url=https://www.wri.org/snapshots/morocco-fuel-subsidy-reform-designed-support-just-transition-renewable-energy |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2021morocco, author = {{World Resources Institute}}, title = {{Morocco: Fuel Subsidy Reform Designed to Support a Just Transition to Renewable Energy}}, institution = {World Resources Institute}, year = {2021}, month = apr, url = {https://www.wri.org/snapshots/morocco-fuel-subsidy-reform-designed-support-just-transition-renewable-energy}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }