Nearly $78 billion, in current value, is the total amount of investments needed to firmly anchor Morocco on a path of resilience and low carbon by 2050, according to the Climate and Development Report (CCDR) of the Morocco, prepared by the World Bank.
Investing in climate action now will bring “significant benefits to Morocco”, creating new jobs, revitalizing rural areas and transforming the country into a “green” industrial hub while helping it achieve more largely its development objectives, says the report, presented Thursday in Rabat, by Carole Megevand, Sector Leader Sustainable Development for the Maghreb countries.
The realization of these investments will be gradual, but their profitability will be considerable, thus making Morocco an attractive environment for foreign direct investment and an export center, in addition to stimulating economic growth.
And to emphasize that if investments in hydraulic infrastructures are of capital importance, they must be accompanied by reforms in the water sector and changes in consumer behavior.
According to the report’s estimates, an optimal level of investment in disaster risk management would cover the equivalent of 15 to 20% of average annual losses, i.e. an average annual investment amount of between 67 and 90 million dollars.
In addition, in order to decarbonize the country’s economy by 2050, the report emphasizes the reduction of dependence on fossil fuels and the massive deployment of solar and wind energy.
According to the report’s projections, more than 85% of electricity could be produced from renewable energies by 2050, compared to 20% in 2021. With the key, the creation of at least 28,000 net jobs per year (i.e. 140,000 jobs in five years) in the renewable and energy efficiency sectors alone.
The gains on the employment front could even be higher taking into account the development of green hydrogen, electric mobility or other green industrial investments in the Kingdom.
The report estimates the cost of decarbonization at around $53 billion over the next three decades, knowing that these investments will be largely borne by the private sector, subject to the implementation of appropriate sectoral policies.
The net economic impact would, however, be positive: reduced imports of fossil fuels and ammonia, increased energy security, reduced air pollution and less vulnerability to international shocks on the price of hydrocarbons.
Decarbonization could enable Morocco to become a net exporter of green energy and green hydrogen and make the Kingdom a hub for green industrial investment and exports, especially to the European Union.
Mitigation and adaptation investment needs would require approximately $23.3 billion by 2030 (two-thirds of which will be spent on adaptation), $25 billion between 2031 and 2040, and $29. 5 billion dollars between 2041 and 2050.
The CCDRs are a new diagnostic tool from the World Bank aimed at exploring the links between climate and development and identifying priority interventions to build resilience and mitigate carbon emissions while supporting economic growth and reducing poverty. poverty. The report on Morocco is the first published for a country in the Middle East and North Africa (MENA) region.
The report identifies three priority issues in support of urgent climate action: tackling water scarcity and droughts, improving flood resilience, and decarbonizing the economy. The report also examines the cross-cutting issues of financing, governance and equity.