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Climate Governance and the Role of Climate Finance in Morocco] 2016 [Climate Governance and the Role of Climate Finance in Morocco] Meriem Houzir, Mustapha Mokass and Liane Schalatek Climate Governance and the Role of Climate Finance in Morocco | 0 Table of Contents LIST OF ACRONYMS ......................................................................................................................... 3 Moroccan and International Institutions ............................................................................................................... 3 Moroccan and International Programs, Strategies and Funds ................................................................................ 4 Other Acronyms..................................................................................................................................................... 6 LIST OF TABLES ................................................................................................................................ 7 LIST OF FIGURES .............................................................................................................................. 7 LIST OF BOXES .................................................................................................................................. 8 INTRODUCTION ................................................................................................................................ 9 I. ASSESSMENT OF THE CURRENT SITUATION IN MOROCCO ......................................... 10 A. Morocco’s Exposure and Vulnerability to Climate Change ........................................................................... 11 B. The Current Situation of Strategic Sectors ................................................................................................... 15 Energy Sector ................................................................................................................................................... 16 Water Sector .................................................................................................................................................... 20 Agricultural Sector............................................................................................................................................ 24 Distinct Sensitive Land Areas ............................................................................................................................ 27 C. Morocco's Ambition in the Fight against Climate Change ............................................................................ 29 D. The Integration of a Gender Approach in National Climate Policy ............................................................... 32 E. Morocco's Position and Role in International Climate Negotiations ............................................................ 34 Morocco’s Presidency of the COP22 – Priorities and Opportunities ................................................................... 36 II. MAPPING OF CLIMATE POLICIES AND INSTITUTIONS IN MOROCCO.................... 38 A. Policies Governing the Response to Climate Change in Morocco ................................................................. 38 Mitigation Policy .............................................................................................................................................. 39 Climate Change Adaptation Policy .................................................................................................................... 43 Green Investment Plan ..................................................................................................................................... 52 B. The Institutional Framework for the Fight against Climate Change ............................................................. 54 Climate Governance and the Role of Climate Finance in Morocco | 1 C. Morocco Competence Centre for Climate Change (4C Maroc) ..................................................................... 55 IV. GOVERNANCE STRUCTURE AND ROLE OF CLIMATE FINANCE IN MOROCCO ........... 57 A. Mobilizing Domestic Resources and Governance Mechanisms for Climate Finance ................................ 61 Public Expenditures and Budget Support for Climate Change ............................................................................ 61 Electricity Tariffs and Energy Subsidies ............................................................................................................. 63 Market Formation and Readiness ..................................................................................................................... 65 B. The Role of International Public Multilateral and Bilateral Climate Funding Mechanisms ........................... 67 The Role of International Climate Finance Support for the Ouarzazate CSP Project ........................................... 69 Climate Investment Funds (CIFs) ....................................................................................................................... 72 Global Environment Facility (GEF) ..................................................................................................................... 73 Adaptation Fund .............................................................................................................................................. 75 The Green Climate Fund (GCF).......................................................................................................................... 77 Bilateral and Multilateral European Climate Finance Support: KfW, ICI, AFD and EIB ......................................... 79 Improving the Coordination of Public Climate Finance in Morocco .................................................................... 80 C. Private Sector Investments in Climate Action in Morocco ........................................................................... 81 D. National Planning, Country Ownership, and Stakeholder Participation in Climate Finance in Morocco ....... 87 CONCLUSIONS AND RECOMMENDATIONS ............................................................................... 91 Climate Governance and the Role of Climate Finance in Morocco | 2 List of Acronyms Moroccan and International Institutions ADA Agency for Agriculture Development AFD French Development Agency AfDB African Development Bank ADEREE Morocco’s Agency for Renewable Energies and Energy Efficiency ANDZOA National Agency of the Development of Oases and Argan Tree Zones CEDAW Convention for the Elimination of all Forms of Discrimination Against Women CGEM General Confederation of Moroccan Companies CMPP Moroccan Centre for Clean Manufacturing COP Conference of the Parties to the UN Framework Convention on Climate Change (UNFCCC) DFI Development Finance Institutions DNA Designated National Authority to the CDM DNM National Meteorological Institute EIB European Investment Bank EU European Union ICC Inter-ministerial Consultative Committee on Gender Equality IMF International Monetary Fund INRA Morocco’s National Institute for Agricultural Research IPCC Intergovernmental Panel on Climate Change KfW Kreditanstalt für Wiederaufbau, German Development Bank MASEN Moroccan Agency for Solar Energy MIE Multilateral Implementing Entities NIE National Implementing Entities Climate Governance and the Role of Climate Finance in Morocco | 3 OHCHR UN High Commissioner on Human Rights OREDD Regional Observatories for the Environment and Sustainable Development RIE Regional Implementing Agencies UNCED UN Conference on Environment and Development UNDP United Nations Development Programme UNFCCC UN Framework Convention on Climate Change Moroccan and International Programs, Strategies and Funds AAP African Adaptation Program AF Adaptation Fund AFB Adaptation Fund Board CCPEIR Climate Change Public Expenditure and Institutional Review CDM Clean Development Mechanism CIF World Bank Climate Investment Funds CNEDD Morocco’s National Charter for Environment and Sustainable Development CTF Clean Technology Fund EC FIV European Commission Investment Fund for Neighborhood FCCM Fonds Capital Carbone Maroc GCF Green Climate Fund GEF Global Environment Facility ICI Germany’s International Climate Initiative INDC Intended Nationally Determined Contribution KP Kyoto Protocol LDCF Least Developed Countries Fund Climate Governance and the Role of Climate Finance in Morocco | 4 LECB Low Emission Capacity Building Project LEDS Low Emission Development Strategy MTEF Medium Term Expenditure Framework NAMA Nationally Appropriate Mitigation Action NAP National Adaptation Plan NC National Communication to the UNFCCC NEP Moroccan National Water Plan NPFI Nagoya Protocol Implementation Fund NWS Moroccan National Water Strategy PCCM Morocco Climate Change Policy PDR Morocco’s Reforestation Master Plan PERG Morocco’s Rural Electrification Program PMV Green Morocco Plan PNRC Morocco’s National Plan against Global Warming PNA National Sanitation Program and Liquid and Wastewater Treatment PNAP/NES Morocco’s National Priority Action Plan (National Energy Strategy) PoA Program of Activities under the CDM RAN Morocco’s National Rural Sanitation Plan SCCF Special Climate Change Fund SIE Society for Energy Investments SNAT National Planning Scheme for the Moroccan Territory Climate Governance and the Role of Climate Finance in Morocco | 5 Other Acronyms BAU Business as usual BOT Build-Operate-Transfer-Model BOOT Build-Own-Operate-Transfer-Model CCM Country Coordination Mechanism CER Certified Emission Reduction CP Contract Program CSP Concentrated Solar Power EDA Enhanced Direct
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