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Monday, July 15, 2024

World Bank report:Morocco needs $78 billion in investments by 2050

According to a World Bank report on climate and development in Morocco, the total amount of investments needed to firmly anchor Morocco on the path of resilience and carbon reduction is about $78 billion in current value by 2050.

The report, presented Thursday in Rabat by Carol Megevand, a pioneer in the sustainable development sector for the Maghreb countries, highlighted that investing in climate action now would yield “great benefits for Morocco”, as well as creating new job opportunities, revitalizing rural areas and transforming rural areas. The country has turned into a “green” industrial pole, with broad support to achieve its development goals.

These investments will be achieved gradually, but their returns will be significant, making Morocco an attractive environment for foreign direct investment and an export center, in addition to stimulating economic growth.

The report emphasized that if investments in water infrastructure are of great importance, they should be accompanied by reforms in the water sector and changes in consumer behavior.

According to the report’s estimates, an ideal level of investment in disaster risk management would cover 15 to 20 percent of average annual losses, or an average annual investment of between $67 million and $90 million.

On the other hand, and in order to decarbonize the country’s economy by the year 2050, the report emphasized reducing dependence on fossil fuels and the extensive use of solar and wind energies.

According to the report’s forecasts, more than 85 percent of electricity can be produced from renewable energies by 2050, compared to 20 percent in 2021. With the creation of at least 28,000 net jobs annually (i.e. 140,000 jobs in five years). Only in the renewable energy and energy efficiency sectors.

The employment gains could be even greater, given the development of green hydrogen, the mobility of electricity or other green industrial investments in the Kingdom.

The report estimated the cost of decarbonization over the next three decades at about $53 billion, knowing that the private sector will undertake the bulk of these investments, taking into account the implementation of appropriate sectoral policies.

In contrast, the net economic impact will be positive: reduced imports of fossil fuels and ammonia, increased energy security, reduced air pollution, and reduced exposure to international shocks at the level of fuel prices.

Decarbonization would make Morocco a source of green energy and green hydrogen, and turn the Kingdom into a pole for green industrial investment and exports, especially towards the European Union.

Investment needs in the field of mitigation and adaptation require about $23.3 billion by 2030 (two thirds will be allocated to adaptation), $25 billion between 2031 and 2040 and $29.5 billion between 2041 and 2050.

The World Bank’s Climate and Development Reports are a new diagnostic tool that aims to examine the links between climate and development and identify priority interventions to enhance resilience and reduce carbon emissions while supporting economic growth and reducing poverty. The report dedicated to Morocco is also the first of its kind to be issued for a country in the Middle East and North Africa region.

The report identifies three priority bets to support urgent climate action: combating water scarcity and drought, improving resilience to floods, and decarbonizing the economy. The report also deals with other issues such as financing, governance and equity.

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