The International Monetary Fund (IMF) in its Morocco country report advised the Maghreb country to utilize its abundant renewable energy potential as an opportunity to overcome the challenges of climate change.
“…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,” said the IMF in its report released on Friday.
“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,” the IMF said, indicating that climate change is both a major threat and a source of opportunities for Morocco’s development.
The report stated that 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,” the report said.
In a related development, the Executive Board of the International Monetary Fund (IMF) today approved today an 18-months arrangement for Morocco under the Resilience and Sustainability Facility (RSF) in an amount equivalent to SDR 1 billion (about US$ 1.32 billion, equivalent to 112 percent of quota).
“The RSF arrangement will help Morocco address climate vulnerabilities, bolster its resilience against climate change, and seize the opportunities from decarbonization. It would also help the Moroccan authorities strengthen preparedness for natural catastrophes and stimulate financing for sustainable development. The arrangement would coincide with the remaining 18 months under the FCL arrangement approved in April 2023,”IMF said in a press statement.