IMF Staff Country Reports

Morocco: Request for an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; Supplement; Staff Statement; and Statement by the Executive Director for Morocco

Publication Date:

October 27, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Climate change is both a major threat and a source of opportunities for Morocco’s development. On one hand, Morocco is one of the world’s most water-stressed countries, and water scarcity is a serious constraint to the country’s ambition to transition to a new model of development. The authorities are planning to boost investment in water infrastructure, but this should be complemented by demand management reforms that bring the price of water closer to its actual cost and induce a shift in consumption behavior. On the other hand, Morocco can take advantage of its abundant competitive renewable energy resources to reduce its still high dependence on fossil fuels. Decarbonizing the energy matrix would require significant investments in renewable energy, which should be largely shouldered by the private sector. It would also require deep regulatory reforms, including further efforts to liberalize the electricity sector. Fully exploiting this renewable energy potential could reduce Morocco´s reliance on imported fuels, help Moroccan firms’ competitiveness in neighboring markets that are embracing a green energy transition (most notably the European Union), and help create jobs. The strong earthquake that hit Morocco on September 8, exerting a heavy toll in terms of human lives and physical damages, highlights the importance of strengthening the country’s preparedness and resilience to natural disasters, including from climate change.

Series:

Country Report No. 2023/354

Subject:

Climate change Climate finance Environment Greenhouse gas emissions International organization Monetary policy Natural disasters

Frequency:

regular