The World Bank has approved a new $300 million (£202m) loan to support Morocco’s green growth strategy. The Development Policy Loan (DPL) backs the country’s efforts to meet its energy challenges by developing the renewable market, energy efficiency regulation in the building sector and removing fossil fuel subsidies. The latter will result in significant budgetary savings, making space for social programs such as health and education, while contributing to a substantial reduction of CO2 emissions up to roughly 14 million tons annually.
The second in a program of two operations designed to support the shift towards a low carbon economy, the Second Inclusive Green Growth Development Policy Loan (DPL) is focused on policies aimed at preserving the environment and protecting the livelihoods of the most vulnerable citizens, while developing new climate friendly job opportunities, says the World Bank in a press release.
Sectors like fisheries, tourism and agriculture, which contribute around 25% of Gross Domestic Product (GDP) and constitute a critical source of employment in poor rural communities are significantly affected by the depletion of natural resources, says the World Bank, adding that the current DPL will support measures to improve the sustainability of these sectors and guarantee their long term prospects.
Marie Françoise Marie-Nelly, World Bank Country Director for the Maghreb said: “Morocco has shown that even in middle income countries, the adoption of climate smart policies is beneficial for the people, the economy and the environment. The choice between the environment and jobs is often the wrong choice. The 22nd Conference of the Parties (COP 22) to be convened in Marrakesh in November 2016 will provide additional opportunities to show that green growth is a reality in Morocco.”