Morocco secures $200 million AIIB loan to combat climate risks

Saturday 23 August 2025 - 10:20

By: Dakir Madiha

Morocco secures $200 million AIIB loan to combat climate risks

The Asian Infrastructure Investment Bank (AIIB) has approved a $200 million loan to enhance Morocco's resilience to climate change, the Chinese Embassy in Morocco announced on Tuesday. The funding will support Morocco’s Nationally Determined Contribution (NDC) program, a cornerstone of the country’s commitments under the Paris Agreement.

Targeting climate resilience

The AIIB financing, part of a broader $900 million initiative co-financed with the World Bank, will focus on two primary goals: improving climate infrastructure and strengthening ecosystems vulnerable to climate risks. The World Bank has already committed $350 million through Results-Based Financing, while Morocco will provide the remaining $350 million.

Climate challenges in Morocco

Morocco faces mounting climate vulnerabilities, with temperatures rising by 0.2°C per decade since the 1960s—double the global average, according to the Intergovernmental Panel on Climate Change (IPCC). This warming trend has intensified extreme weather events, including droughts, floods, and heatwaves.

The AIIB loan will prioritize projects to address these challenges, including the installation of all-weather meteorological radars to improve forecasting and risk management. It will also support the rehabilitation of traditional hydraulic systems and the development of resilient agricultural practices.

Oasis ecosystems and rural development

A significant portion of the funding will focus on strengthening oasis ecosystems, a critical component of Morocco’s environmental and economic landscape. Key initiatives include:

- Establishing agricultural cooperatives.

- Expanding the cultivation of climate-resilient crops such as argan, cactus, carob, olive, and almond trees.

- Enhancing the date palm sector to boost rural livelihoods.

The program is expected to reduce greenhouse gas emissions, strengthen rural economies, and create green jobs, while consolidating coordination in climate finance and environmental risk management.

Institutional collaboration

Several national entities will oversee the program’s implementation, including the Agricultural Development Agency (ADA), the National Agency for the Development of Oasis Zones and Argan (ANDZOA), and the General Directorate of Meteorology (DGM).

AIIB’s expanding role in Morocco

Morocco joined the AIIB in 2019, aligning with the bank’s mission to finance infrastructure in member countries. The AIIB, established by China in 2015, aims to challenge Western-led multilateral financial institutions. With 110 member countries, including 19 African nations, the AIIB is strengthening its global influence.

The loan underscores Morocco’s commitment to achieving its revised NDC targets, which aim to cut greenhouse gas emissions by 45.5% by 2030, with 18.3% of reductions being unconditional.