Morocco is entering a new phase in the development of sustainable finance. The Ministry of Economy and Finance, Bank Al-Maghrib, the Moroccan Capital Market Authority (AMMC), the Insurance and Social Welfare Supervisory Authority (ACAPS), and the Ministry of Energy Transition have opened a public consultation on the country’s proposed green financial taxonomy—a framework designed to establish a common language for identifying activities that genuinely support national climate objectives.
The taxonomy is expected to become the benchmark used by banks, investors, insurers and businesses to classify sustainable investments, assess risks linked to the energy transition, and direct financial flows toward the most environmentally responsible sectors.
According to the Ministry of Economy and Finance, the taxonomy is based on harmonized scientific and technical criteria aimed at increasing market transparency and reducing the risk of misclassifying green investments.
The framework adopts a particularly rigorous approach. Each economic activity will have to meet a set of specific technical criteria, demonstrate a substantial contribution to environmental objectives, comply with the “do no significant harm” principle with respect to other climate goals, and satisfy minimum social safeguards.
The initiative reflects a profound shift in financial regulation, as green investments will no longer be defined by declarations of intent alone, but by measurable and verifiable indicators. For financial institutions, this standardization is expected to facilitate project assessments, improve climate-risk analysis and strengthen investor confidence.
The decision to initially focus on the energy, transport and industrial sectors is driven by both economic and environmental considerations. These sectors account for a significant share of Morocco’s greenhouse gas emissions while also representing the largest investment needs linked to the energy transition.
Under the proposed framework, solar and wind projects would automatically qualify as transition-compatible investments. The taxonomy also sets a threshold of 100 grams of CO₂ equivalent per kilowatt-hour for electricity generation to be considered low-carbon. More importantly, it establishes a long-term decarbonization pathway for Morocco’s power sector, with carbon intensity projected to fall from 428 gCO₂e/kWh in 2026 to just 16 gCO₂e/kWh by 2050, according to the Ministry of Economy and Finance.
The roadmap provides investors with a clear long-term signal by outlining the expected pace of decarbonization in the energy sector.
A gradual but closely supervised transition
Rather than drawing a strict line between green and non-green activities, the Moroccan framework acknowledges that some existing infrastructure will require a transition period. Access to sustainable finance, however, will depend on the existence of a credible emissions-reduction strategy.
Energy facilities, for instance, may qualify for transition financing if they can demonstrate—through documented plans—that they are progressively improving their environmental performance through energy-efficiency measures, fuel switching or carbon-capture technologies.
The framework also introduces oversight mechanisms covering electricity traceability, power-purchase agreements and related certificates to prevent double counting. Activities deemed incompatible with climate objectives will be subject to a separate classification that excludes them from the scope of green finance.
The taxonomy extends well beyond the energy sector. Cement, steel, aluminum and phosphate fertilizer production, as well as several manufacturing industries, are among the activities covered.
This expansion reflects a broader transformation in industrial competitiveness. Moroccan companies will increasingly need to prove their ability to cut emissions, improve energy efficiency and enhance the traceability of their production processes if they hope to access new sustainable financing opportunities.
Looking ahead, the shift also responds to changes in international markets, where environmental standards are becoming a decisive factor in competitiveness and the cost of capital.
A key pillar of Morocco’s financial strategy
The future taxonomy is part of a broader package of reforms being pursued by the Kingdom. The framework is aligned with Morocco’s Climate Finance Development Strategy through 2030, the Nationally Determined Contribution (NDC 3.0), and the National Low-Carbon Strategy (SNBC) for 2050, according to the Ministry of Economy and Finance.
This alignment explains the joint involvement of the Ministry of Economy and Finance, Bank Al-Maghrib, the AMMC and ACAPS. Climate finance is no longer viewed simply as an environmental policy tool, but increasingly as a driver of financial stability, capital allocation and economic transformation.
The expected impact extends to bank lending, bond issuance, insurance products, asset management and the investment strategies of both public and private companies.
The public consultation, which will remain open until July 31, 2026, marks the final stage before the framework’s adoption. Authorities are seeking feedback from financial-market participants on the technical criteria, the gradual implementation process and the support measures required across different sectors of the economy.
