Morocco is embarking on a structural reform of its public budgeting process, introducing a formal system for identifying and tracking the environmental impact of government expenditure. The initiative, known as Climate Budget Labelling (Etiquetage climatique du budget, ECB), was formally launched by Prime Minister’s Circular No. 6/2026 of 23 April 2026 and will be applied for the first time as a pilot during the preparation of the Finance Bill for 2027 — making the PLF 2027 Morocco’s first formal “green budget.”
The Budget Directorate recently held a two-day capacity building workshop to launch the pilot phase, bringing together focal points from the three participating ministries, members of an inter-ministerial working group, Budget Directorate staff, international technical and financial partners and expert advisers. The three ministries selected for the pilot are the Ministry of Equipment and Water, the Ministry of Transport and Logistics, and the Ministry of Agriculture, Maritime Fisheries, Rural Development, Water and Forests — a choice reflecting their direct links to Morocco’s climate adaptation and mitigation priorities.
The ECB system classifies budgetary expenditures according to their potential climate impact, distinguishing between spending that contributes to greenhouse gas emission reductions, spending that supports adaptation to climate change, and expenditure with neutral or potentially adverse environmental effects. Additional environmental dimensions covered include biodiversity conservation, water resource management, pollution control and waste management. The classification methodology is adapted to Morocco’s specific climate, environmental and policy context.
The reform’s objectives are both analytical and governance-oriented. By making environmental impacts visible and trackable across budget lines, the system aims to strengthen evidence-based decision-making, identify priority financing needs in climate-related areas, and provide a credible accountability framework for international partners and investors engaged in Morocco’s green transition. The Organisation internationale de la Francophonie’s guide on green budgeting, which influenced the methodology, describes expenditure labelling as a means to attribute spending to specific thematic objectives and to monitor impact over time.
The PLF 2027 pilot fits within the broader three-year budget programming exercise for the period 2027-2029, which will require ministries to submit proposals by programme and project. Alongside the climate labelling pilot, the budget circular reaffirms fiscal consolidation priorities: controlling personnel spending, rationalising equipment and operating costs, and reducing energy and logistics expenditure across public administration. Together, these elements signal a public finance framework that is simultaneously greener and more disciplined.
