Climate Governance and the Role of Climate Finance in …

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 |

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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

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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

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List of Acronyms

Moroccan and International Institutions

ADA AFD AfDB ADEREE ANDZOA CEDAW CGEM CMPP COP

DFI DNA DNM EIB EU ICC IMF INRA IPCC KfW MASEN MIE NIE

Agency for Agriculture Development French Development Agency African Development Bank Morocco's Agency for Renewable Energies and Energy Efficiency National Agency of the Development of Oases and Argan Tree Zones Convention for the Elimination of all Forms of Discrimination Against Women General Confederation of Moroccan Companies Moroccan Centre for Clean Manufacturing Conference of the Parties to the UN Framework Convention on Climate Change (UNFCCC) Development Finance Institutions Designated National Authority to the CDM National Meteorological Institute European Investment Bank European Union Inter-ministerial Consultative Committee on Gender Equality International Monetary Fund Morocco's National Institute for Agricultural Research Intergovernmental Panel on Climate Change Kreditanstalt f?r Wiederaufbau, German Development Bank Moroccan Agency for Solar Energy Multilateral Implementing Entities National Implementing Entities

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OHCHR OREDD RIE UNCED UNDP UNFCCC

UN High Commissioner on Human Rights Regional Observatories for the Environment and Sustainable Development Regional Implementing Agencies UN Conference on Environment and Development United Nations Development Programme UN Framework Convention on Climate Change

Moroccan and International Programs, Strategies and Funds

AAP AF AFB CCPEIR CDM

African Adaptation Program Adaptation Fund Adaptation Fund Board Climate Change Public Expenditure and Institutional Review Clean Development Mechanism

CIF CNEDD CTF EC FIV FCCM

World Bank Climate Investment Funds Morocco's National Charter for Environment and Sustainable Development Clean Technology Fund European Commission Investment Fund for Neighborhood Fonds Capital Carbone Maroc

GCF GEF ICI INDC KP LDCF

Green Climate Fund Global Environment Facility Germany's International Climate Initiative Intended Nationally Determined Contribution Kyoto Protocol Least Developed Countries Fund

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LECB LEDS MTEF NAMA NAP NC NEP NPFI NWS PCCM PDR PERG PMV PNRC PNA PNAP/NES PoA RAN SCCF SIE SNAT

Low Emission Capacity Building Project Low Emission Development Strategy Medium Term Expenditure Framework Nationally Appropriate Mitigation Action National Adaptation Plan National Communication to the UNFCCC Moroccan National Water Plan Nagoya Protocol Implementation Fund Moroccan National Water Strategy Morocco Climate Change Policy Morocco's Reforestation Master Plan Morocco's Rural Electrification Program Green Morocco Plan Morocco's National Plan against Global Warming National Sanitation Program and Liquid and Wastewater Treatment Morocco's National Priority Action Plan (National Energy Strategy) Program of Activities under the CDM Morocco's National Rural Sanitation Plan Special Climate Change Fund Society for Energy Investments National Planning Scheme for the Moroccan Territory

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