Morocco emerges as a model for climate adaptation finance

Morocco is being highlighted internationally for its approach to mobilizing climate adaptation finance, with the Adaptation Fund pointing to the country’s experience as an example of how direct access to climate funding can support locally designed projects and strengthen resilience to environmental pressures.

Speaking in Rabat at the opening of the annual meeting of national implementing entities, Adaptation Fund Director Mikko Ollikainen described Morocco’s experience in climate finance engineering as a clear illustration of the potential of direct access mechanisms. He particularly highlighted the long-standing cooperation between the Adaptation Fund and Morocco’s Agricultural Development Agency, known as ADA.

The partnership has supported projects designed to help vulnerable rural communities adapt to increasingly difficult climate conditions. One of the flagship initiatives is the Climate Change Adaptation Project in Oasis Zones, known as PACCZO, which received $10 million in funding. The project focused on improving traditional irrigation systems known as khettaras and strengthened the ability of around 1.7 million people to cope with water stress.

Morocco’s experience comes as the global financing gap for climate adaptation continues to widen. Moroccan officials cited United Nations Environment Programme assessments indicating that international public finance currently available for adaptation remains far below the level required by developing countries. The gap has increased pressure on international institutions to secure more predictable, long-term funding.

Razi Bouzekri, secretary-general in charge of sustainable development at Morocco’s Ministry of Energy Transition and Sustainable Development, called for stronger resource mobilization for the Adaptation Fund. He emphasized the importance of multi-year commitments and a broader contributor base, arguing that greater predictability would allow the fund to support longer-term adaptation strategies and replicate projects that have already demonstrated practical results.

Climate resilience has become increasingly important for Morocco as the country faces repeated periods of drought and growing pressure on water resources. Agriculture remains a central part of the national economy and food security, contributing an average of between 12% and 14% of gross domestic product while providing livelihoods, directly or indirectly, to around 40% of the economically active population.

The country’s adaptation strategy therefore increasingly links climate resilience with economic and social stability. Water management, agricultural productivity and the diversification of rural incomes have become key areas for investment, particularly in regions where prolonged drought and water scarcity place additional pressure on communities.

Morocco is also preparing a second major initiative in the Drâa basin, building on lessons from the oasis adaptation project. The proposed project seeks to expand climate adaptation measures while supporting rural businesses and improving the resilience of local communities and ecosystems.

The direct-access model is considered particularly important because it allows accredited national institutions to develop and manage climate projects without relying entirely on international intermediaries. Moroccan officials argue that this approach can strengthen national ownership, improve local governance and ensure that investments correspond more closely to domestic priorities.

Rachid Taheri, director of climate and biodiversity at the Ministry of Energy Transition and Sustainable Development, said Morocco’s adaptation financing requirements could reach $306 billion by 2035. Around two-thirds of those needs are expected to be linked to the water sector, underscoring the connection between climate adaptation, water security and food security.

The foundations of the direct-access mechanism were established through international climate negotiations, with Morocco playing a role in advancing the approach during the COP process. The mechanism now enables national institutions to design and lead projects while maintaining direct links with international climate funds.

The international meeting in Rabat, held from September 15 to 17, brings together representatives of 33 accredited implementing entities from around the world alongside members of the Adaptation Fund secretariat. Discussions are focused on accreditation, project implementation, institutional capacity, environmental and social safeguards, gender considerations and improving access to adaptation finance.

The gathering also provides an opportunity for Morocco to present lessons from its experience in mobilizing climate finance and implementing adaptation projects in rural and agricultural areas. The country’s oasis regions are among the main areas targeted by these efforts because of their vulnerability to water shortages and environmental degradation.

Following the completion of PACCZO in 2023, the Agricultural Development Agency is preparing another five-year initiative aimed at strengthening the resilience of oasis ecosystems and improving the adaptive capacity of communities in the Drâa basin. The project, submitted to the Adaptation Fund for $20 million in financing, would cover the provinces of Ouarzazate, Zagora and Tinghir.

The proposed program would focus on improving water management and access, promoting climate-smart agriculture, diversifying income-generating activities and protecting the long-term sustainability of oasis ecosystems. Women and young people in rural communities would receive particular attention as part of the effort to strengthen local economic opportunities.

Morocco’s experience illustrates the growing importance of national institutions in translating international climate finance into projects adapted to local realities. While access to sufficient funding remains a major challenge worldwide, the Moroccan model places emphasis on national ownership, local implementation and long-term resilience as essential components of climate adaptation.