EBRD Invests Big in Morocco’s Green Future: A Closer Look at 2024’s Impact
The European Bank for Reconstruction and Development (EBRD) has significantly ramped up its investment in Morocco, pouring in approximately €530 million (MAD 5.5 billion) across 12 projects in 2024. This represents a substantial 22% of the EBRD’s total investment in the Southern and Eastern Mediterranean (SEMED) region, highlighting Morocco’s growing importance in the bank’s portfolio. What’s even more impressive is the strong emphasis on green initiatives, with a record 59% of these funds dedicated to supporting Morocco’s transition to a more sustainable economy.
This commitment to green financing aligns with global trends. According to the Climate Policy Initiative, global climate finance flows reached $632 billion in 2020, demonstrating a growing awareness of the need for sustainable investments. The EBRD’s focus on Morocco’s green sector positions the country as a key player in this global shift.
One of the most noteworthy projects is a €200 million loan to the Office Chérifien des Phosphates (OCP), Morocco’s state-owned phosphate company, for the development of two new desalination plants. This marks the EBRD’s first climate adaptation project within Morocco’s industrial sector and directly addresses the country’s pressing water scarcity challenges. By supporting OCP’s ambitious goal to eliminate freshwater use in industrial production by 2030, the EBRD is contributing to long-term water security in a region increasingly vulnerable to climate change. Desalination, while energy-intensive, is becoming a crucial strategy for water-stressed regions worldwide, as highlighted by the World Bank’s increasing focus on desalination projects in its portfolio.
The EBRD’s overall investment in the SEMED region, which includes Morocco, Egypt, Jordan, Lebanon, Tunisia, the West Bank, and Gaza, reached €2.4 billion in 2024, a 20% increase compared to 2023. Almost half (49%) of these investments were directed towards green projects, reflecting the region’s growing commitment to sustainable development. Furthermore, the EBRD emphasized social inclusion, with approximately 60% of regional investments and half of those in Morocco specifically designed to promote gender equality. An additional 33% of projects focused on addressing social gaps and developing human capital, demonstrating a holistic approach to development.
Beyond the SEMED region, the EBRD’s global investments reached a record €16.6 billion (approximately MAD 170 billion) in 2024, a 26% increase from the previous year. This surge in investment, particularly in green financing, underscores the EBRD’s commitment to driving sustainable and inclusive growth worldwide. The bank also highlighted that over three-quarters of the 584 projects financed in 2024 were directed towards the private sector, further stimulating economic development and job creation.
The EBRD’s strategic investments in Morocco, particularly its focus on green projects and social inclusion, signal a promising future for the country’s sustainable development. By partnering with key players like OCP and prioritizing climate adaptation, the EBRD is not only contributing to Morocco’s economic growth but also positioning the country as a leader in the global transition to a greener future.
