Over the past decade, Morocco’s macroeconomic, political, and regulatory stability have helped the country achieve strong economic growth. Rising standards of living combined with rapid population growth have driven substantial increases in Morocco’s energy needs. Yet the fiscal impact of maintaining, much less expanding, Morocco’s energy supply, is tremendous as the country imports 95% of its primary energy supply. Every year Morocco spends upwards of US$80 billion on imported oil, making it particularly vulnerable to external market shocks and further constraining the government’s ability to pursue other development objectives.
...the percent of total energy produced from fossil fuels in 2006
Rather than foregoing these opportunities, the Moroccan government has designed an investment plan that will tap US$150 million in financing from the Clean Technology Fund (CTF) to reach financial closure for investments that will capitalize on Morocco’s world-class renewable energy resources to accelerate Morocco’s shift to a cleaner economy. CTF funds will be deployed to effectively buy down the cost of low carbon growth in Morocco, and will mobilize an additional US$2.5 billion from the Hassan II Fund, Kingdom of Saudi Arabia, United Arab Emirates, African Development Bank (AfDB), and World Bank Group (IBRD, IFC). CTF co-financed projects are expected to achieve 33.8 MtCO2e cumulative GHG emissions savings and reductions.