Morocco prepares carbon tax to cut emissions

The Moroccan government is considering a carbon tax and plans to release a road map for its implementation next year to meet its climate goals, the Organization for Economic Co-operation and Development (OCDE) said.

Morocco has an ambitious target to reduce emissions by 45.5% by 2030 relative to 2010 and to net zero by 2050. But has yet to introduce a carbon tax.

Such a tax could increase Morocco’s GDP by 0.8%, OCDE said in a recent survey.

“Given that 15% of Morocco’s exports to the EU are in sectors that will be covered by the EU Carbon Border Adjustment Mechanism (CBAM), it would be sensible to align the approach with the EU, particularly for the iron and steel sectors that are most exposed,” it said.

Raising taxes on diesel, enacting a carbon tax, raising water prices and a full enforcement of water withdrawal fees could raise revenues worth 1.4-1.5% of GDP, according to OCDE.

In tandem, the government has also an ambitious program to increase the share of renewable energy in electricity production to over 50% by 2030.