Morocco is preparing to progress in its energy transition by implementing a carbon tax, a crucial tool to reduce its greenhouse gas emissions and achieve carbon neutrality by 2050. According to a recent OECD report , which analyzes different aspects of this objective, this tax could improve Morocco’s budgetary balance by 0.8% of GDP. Explanations by Ghalia Mokhtari.
Challenge: Can you explain to us what the carbon tax is and how it applies in the Moroccan context?
Ghalia Mokhtari: The carbon tax constitutes a financial instrument aimed at reducing greenhouse gas emissions by applying pricing to CO emissions.2. In Morocco, despite discussions around the implementation of the carbon tax, it has not yet been officially established.
Recently, the Finance Bill for 2025 introduced the concept of environmental taxation by implementing a carbon tax aimed at aligning taxation and customs rules with climate-related issues.
The Kingdom of Morocco, as a stakeholder in the 2015 Paris Agreement, has committed to reducing its carbon dioxide emissions and achieving ambitious decarbonization targets by the year 2030.
The carbon tax represents a fundamental instrument for achieving these objectives, because it has the capacity to influence the behavior of companies and individuals by making the use of fossil fuels less economically advantageous, while encouraging investments in renewable energies. .
The country has already occupied a leading position in the region in terms of renewable energy since 2009, thanks to large-scale projects in the field of solar and wind, as well as concrete objectives in terms of green hydrogen.
However, in order to meet its climate commitments and remain competitive on the international scene, in particular vis-à-vis the European Union which is establishing a carbon adjustment system at borders, Morocco could consider the carbon tax as a a strategic opportunity.
Among the various measures envisaged, the integration of a carbon tax appears to be a strategic instrument aimed at stimulating the country’s energy transition and achieving its ambitious climate objectives.
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Challenge: In this sense, what are Morocco’s main motivations for introducing a carbon tax?
The implementation of a carbon tax is part of a national and international approach aimed at combating climate change. This initiative is motivated by several factors.
Reduction of emissions: In accordance with its commitments made in the Paris Agreement, Morocco aspires to reduce its greenhouse gas emissions by 45.5% by 2030. The carbon tax could encourage companies to opt for more environmentally friendly technologies and less polluting industrial practices.
Financing the energy transition would consist of using funds from this tax to support initiatives linked to renewable energy and energy efficiency, thus helping to promote the transition to an environmentally friendly economy.
Forecast of European provisions: The European Union is gradually implementing a carbon tax at borders, likely to have an impact on Morocco’s exports. By establishing its own carbon tax, Morocco could prevent any sanctions against its exporting industries, while harmonizing its environmental measures with those of its trading partners.
Stimulating industrial innovation: By increasing the cost of pollution, the implementation of a carbon tax would encourage Moroccan companies to invest in innovation, upgrade their infrastructure and adopt more sustainable methods.
Challenge: What impact will the carbon tax have on Morocco’s energy transition strategy?
The introduction of a carbon tax would have a major impact on Morocco’s energy transition strategy:
Reorientation of industrial investments: Faced with the increase in costs induced by carbon taxation, companies could intensify their investments in ecological technologies in order to reduce their greenhouse gas emissions and reduce their reliance on fossil fuels.
The promotion of renewable energies could be favored by increasing the cost of fossil fuels through the introduction of a carbon tax, which would have the effect of making renewable energies such as solar or wind more competitive. This would help consolidate Morocco’s leading position in the field of clean energy.
Support for sustainable energy production: Funds from the carbon tax could be reallocated towards the development of infrastructure and technologies linked to renewable energies, thus promoting the energy transition and stimulating the country’s green economic growth.
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Challenge: According to the OECD report, the carbon tax could increase Morocco’s budget balance by 0.8% of GDP. What are your thoughts on this estimate?
According to a recent assessment by the Organization for Economic Co-operation and Development (OECD), the implementation of a carbon tax could potentially increase Morocco’s budget balance by 0.8% of Gross Domestic Product (GDP). This number is of particular importance for various reasons. :
An increase in budgetary stability: This increase in tax revenue would allow the Moroccan government to have significant room for maneuver in the face of pressure on public finances and increased spending. To give a concrete idea, if Morocco’s GDP is around 130 billion dollars (around 1200 billion dirhams), an improvement of 0.8% would correspond to around **10 billion dirhams** additional in the coffers of the state. This represents a significant source of revenue for the government.
Reallocation of resources: Additional funds could be allocated to finance social and environmental measures, in particular to mitigate the possible social repercussions of the tax on the most vulnerable households.
Immediate impacts on industrial sectors: Despite the long-term financial benefits, the introduction of this tax could initially impact energy-intensive industries.
These entities will have to adjust their economic models in order to integrate this new financial burden.
Effect on business competitiveness: However, a carbon tax could also have an impact on the competitiveness of industries that rely on fossil fuels, such as manufacturing or transportation. These sectors could see their costs rise, potentially reducing their competitiveness domestically and internationally, unless they invest in cleaner technologies. However, support mechanisms (such as subsidies for the adoption of green technologies) could mitigate this effect.
Economic modernization: This tax could encourage Moroccan industrial sectors to adopt more sustainable practices and invest in technological innovations, which could, in the long term, strengthen the country’s competitiveness internationally, particularly in the sectors of clean energy and green technologies.
Preparing for a low-carbon future: The carbon tax would allow Morocco to prepare for a future in which international regulations on carbon emissions will likely become increasingly strict. By taking proactive measures, the country could avoid long-term economic shocks and ensure more resilient growth.
Challenge: How could the carbon tax encourage innovation and the development of renewable energies in Morocco?
The carbon tax could also contribute significantly to promoting technological development and innovation in Morocco.
Encourage innovation in research and development: By increasing the cost of pollution, the carbon tax pushes companies to direct their investments towards environmentally friendly technologies and to promote innovation with a view to reducing their emissions.
Rising demand for renewable energy: With the increasing cost of fossil fuels, we can anticipate an increase in demand for ecological solutions such as solar, wind and green hydrogen, which should stimulate development new projects and research in these sectors.
Attract foreign investment: An ambitious environmental policy could position Morocco as a destination of choice for foreign investors, particularly those engaged in the ecological and sustainable technology sector.
His journey
She is a lawyer at the Casablanca Bar. His firm specializes in the development and financing of infrastructure projects in Morocco, particularly in the energy sector. Ghalia is also a member of the board of directors of the Moroccan Institute of Strategic Intelligence (IMIS) and regularly publishes articles on the Kingdom’s energy issues.
His News
Morocco has put in place several measures with a view to soon introducing a carbon tax in the country. A beneficial measure according to experts since according to a recent OECD report, the carbon tax could increase Morocco’s budget balance by 0.8% of GDP.
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