MOROCCO – The European Bank for Reconstruction and Development (EBRD) has signed an agreement with Bank Al-Maghrib and Groupement Professionnel des Banques du Maroc (GPBM), to promote green finance and support climate and environmental risk management in Morocco.
The three organizations agreed to establish “a framework of cooperation on the implementation of Directive 5/W/21 on financial risk management issued by Bank Al-Maghrib, Morocco’s central bank, last year.”
The purpose of this directive is to encourage the Moroccan financial sector to measure and manage financial risks relating to climate change and the environment and to encourage Moroccan banks to make new commitments for sustainable finance.
Through this cooperation, the EBRD, the Central Bank of Morocco, and the GPBM aim to raise awareness and build capacity in the management of climate and environmental risks of stakeholders dependent on Bank Al-Maghrib and to promote green finance.
The EBRD President also added that the directive is a significant step towards bringing together the skills, resources, and reach necessary to help local financial institutions take action for the climate and contribute to the ecological transition of the country.
Faced with climate change and other environmental challenges, Morocco has opted for encouraging green finance along with its efforts to cut greenhouse gas emissions and decrease its reliance on polluting energy sources.
Green finance refers to socially responsible investments that generate eco-friendly products and practices with the help of new technologies to reduce reliance on carbon.
In March, Morocco’s Capital Market Authority Operations and Information reported that the country’s green financing market was valued at US$450 million, six years after its inception.
Morocco’s experience in regulating green finance was celebrated in March as the country’s financial regulation body was invited by Oman’s Chamber of Trade and Commerce to share its expertise in the field.
The support of other financial institutions such as EBRD which has so far invested more than US$3.37 billion in the country through 83 projects, is key to the country’s mission of using 100% renewable energy by 2050.