Morocco embraces strategic carbon markets to lead low-carbon future

Thursday 10 July 2025 - 09:50

By: Dakir Madiha

Morocco embraces strategic carbon markets to lead low-carbon future

Morocco is positioning itself as a leader in sustainable development by leveraging carbon markets as a strategic tool for economic and environmental transformation. At the "Scaling of Carbon Markets in Africa" conference in Casablanca, Energy Transition Minister Leila Benali outlined the country’s ambitious plan to reduce emissions while fostering economic growth.

Beyond compliance: Carbon markets as a development pillar

Speaking at the event organized by Casablanca Finance City Authority and CDG Group, Benali emphasized that Morocco’s approach to carbon markets goes beyond technical compliance. “This is not about checking boxes. This is a deeply ethical, strategic, and economic choice,” she stated. Carbon markets, she added, are integrated into Morocco’s broader development model, aligning energy, economic, and social priorities.

Morocco demonstrated foresight by laying the groundwork for its carbon market before the finalization of Article 6 of the Paris Agreement, which governs international carbon trading mechanisms. The minister highlighted that climate action should not remain the privilege of major emitters but should capitalize on Morocco’s competitive advantages.

Strategic energy and decarbonization initiatives

Benali detailed Morocco’s proactive energy strategies, including its resilience during the 2021 Algerian gas supply crisis, which spurred the country to strengthen its pipeline networks to support both natural gas and green hydrogen. Morocco has also committed to phasing out coal in electricity generation by 2030, canceling planned coal projects in Nador and Jarada.

As part of its decarbonization efforts, Morocco is advancing projects to convert fuel oil turbines to natural gas, with the Nador West Med initiative marking its first liquefied natural gas (LNG) entry point.

Building international partnerships

Morocco’s low-carbon vision is supported by partnerships with countries such as Switzerland, Singapore, South Korea, and Norway. The country has also launched the "Carbon Balance Morocco" program in collaboration with the Mohammed VI Foundation for Environmental Protection, the Moroccan Agency for Energy Efficiency, and key industry players. This initiative aims to create a roadmap for carbon management while promoting sustainability across industries.

Africa’s emerging leader in green minerals

Positioning itself as a strategic corridor for transition metals and minerals between Africa, Europe, and the Atlantic basin, Morocco is developing an Environmental, Social, and Governance (ESG) certification mechanism for its resources. The minister called for African-defined standards to attract financing and ensure sustainability in the mineral value chain.

Additionally, Morocco is rolling out a national certification system for green electricity and liberalizing medium-voltage markets to spur industrial competitiveness.

Carbon certification as a competitive edge

Highlighting the European Union’s Carbon Border Adjustment Mechanism, Benali noted the growing pressure on exporting industries to adopt low-carbon practices. Morocco sees carbon certification not only as a compliance tool but also as a means to enhance competitiveness, safeguard market shares, and support decarbonization.

With its strategic planning and international collaboration, Morocco’s innovative approach underscores how developing nations can turn climate challenges into opportunities for economic growth and leadership in sustainability.