Morocco: Morocco Climate Operation - Support to the Nationally Determined Contribution Program

OBJECTIVE

The Program’s objective is to support the implementation of Morocco’s Nationally Determined Contribution (NDC) by scaling up actions that deliver dual benefits for climate mitigation and resilience of targeted vulnerable ecosystems, while strengthening Morocco’s institutional coordination capacities.

DESCRIPTION

This Program is a co-financing operation with the World Bank’s (WB) Program-for-Results (PforR) “Climate Operation – Support to the Nationally Determined Contribution (NDC),” declared effective since January 8, 2024 and which consists of two Result Areas (RAs):

- RA1: Strengthen Policy and Institutional Capacity in Green Public Finance Management, Green Finance, and Climate Data; and
- RA2: Enhance Resilience to Climate Change of Vulnerable People and Ecosystems.

AIIB’s co-financing of USD200 million is designed to add value to the WB’s efforts and scale up the activities and impact across both Result Areas of the PforR.

Under RA1 (RA1.2), the Program will enhance the PforR by supporting the expansion of Morocco’s climate information infrastructure, notably through the acquisition and operationalization of new all-weather radars. This will bolster real-time weather forecasting, disaster preparedness, air quality monitoring, and data-driven climate planning which are also needed for optimization and safety of renewable energy operations, especially hydropower and wind power.

Under RA2 (RA2.2), AIIB will scale up the PforR’s scope of activities by supporting the creation or upgrading of agricultural and para-agricultural service cooperatives in oasis areas, as well as the construction and equipping of additional date palm valorization units. In addition, AIIB will finance complementary activities to the PforR: the plantation of climate-resilient species (e.g., cactus, carob, argan, olive, data palm, almond, caper), the support to targeted research programs on palm tree and argan tree, and the rehabilitation of traditional hydrological infrastructures. Together, these efforts will enhance the depth of RA2 by reinforcing the carbon sequestration as well as resilience of vulnerable oasis ecosystems through targeted nature-based solutions and improved rural value chains.

These interventions, aligned with both the mitigation and climate adaptation and resilience goals of the Paris Agreement, deliver dual climate benefits—sequestering carbon and enhancing resilience—while supporting rural livelihoods, especially for women and youth.

This Program aligns with the national priorities set out in Morocco’s 2021 NDC, the 2023 Finance Law, and multi-year budget frameworks. The use of Results-Based Financing (RBF) ensures a strong strategic fit with AIIB’s priorities and capitalizes on Morocco’s proven capacity to plan and execute budget-linked reforms.

ENVIRONMENTAL AND SOCIAL INFORMATION

Applicable Policy and Environmental and Social (ES) Categorization. The Program will be co-financed with the World Bank and its PforR policy framework is applicable. AIIB has reviewed the core environmental and social (ES) principles and has determined that they are consistent with the Bank’s Articles of Agreement and materially consistent with AIIB's Environmental and Social Framework (ESF), including the Environmental and Social Exclusion List (ESEL). The ES risks and impacts of the Program have been assessed by the World Bank through an Environmental and Social Systems Assessment (ESSA). Activities that are likely to have significant ES adverse impacts (Category A) in AIIB’s ES ESEL are not eligible for financing under the Program. In addition, activities that will be implemented in protected areas or biodiversity areas as defined by national law and in critical natural habitats areas, will adversely affect places of cultural significance and protected historical/archaeological assets (both natural and human-made) and are non-compliant with national ES assessment process, are excluded from the Program. The Program involves limited, potentially adverse ES impacts and is thus classified as Category B, with a “Moderate” risk level, as per AIIB's ESP. 

Potential Environmental and Social Risks and Impacts. The Program’s results will help reduce poverty and economic losses by improving the resilience of vulnerable groups and ecosystems to climate shocks, such as  protecting farmers against climate risks such as droughts, floods and sandstorms. Activities under the Program will reduce soil erosion and improve water and air quality and water cycle regulation. However, despite its benefits, the Program has potential ES risks and impacts. Activities supporting the resilience of vulnerable ecosystems and nature-based solutions carry some social risks given the Program’s national scope; the scarcity of natural resources such as land and water in oases areas; the vulnerability of oases’ farmers and the small size of their plots; and the informal uses of rural forests for the extraction of non-timber resources such as honey, plants for basketry and handicrafts and firewood. In addition, the anticipated impacts of the Program (particularly RAs 2.2 and 2.3) will include the potential exclusion of vulnerable groups and labor influx impacts, as well as potential conflicts related to land and water use. These risks will be addressed using Morocco’s safeguards systems applied in the Program and implementing agreed ES actions in the Result Based Program’s Action Plan. 

Gender Aspect. Direct stakeholders and other interested parties were consulted during the ESSA on the potential gender impacts of the program activities, gender benefits, gender participation and inclusion and the gender action plan. A range of gender-related activities have been identified for implementation by the relevant agencies. In addition, a key indicator of the Program activities financed by AIIB includes the percentage of women and youth participating in service cooperatives created or upgraded in the date palm sector. Furthermore, two of the implementing entities, the National Agency of Water and Forest (ANEF) and the National Agency for the Development of Oasis Areas and Argan Trees (ANDZOA), prepared Gender Action Plans (GAPs) to manage gender impacts and ensure women’s participation and benefits throughout the Program implementation.  

Environmental and Social Instruments. Based on the previous ESSA, an updated ESSA was conducted during July and August 2025 focusing on the newly added activities and stakeholder to the World Bank parent program and therefore an Addendum to the ESSA of the parent program has been prepared. This Addendum indicates that the national ES management systems described in the parent ESSA continue to apply to the operation, covering both the existing program and the additional financing, including the relevant laws, regulations, standards and procedures. The World Bank also developed a Program Action Plan (PAP) in consultation with communities and relevant stakeholders, which was included in the Addendum to the ESSA.  Following the recommendations of the ESSA and the Addendum, actions to strengthen the Program’s ES systems include (a) designating ES focal points for entities joining the Program, (b) continuing the implementation of capacity building measures as envisaged in the PAP, (c) updating the ES Technical Manual as a guiding tool to manage ES risks and impacts of the entire Program, and (d) establishing an ES reporting system. 

Stakeholder Engagement, Information Disclosure and the Project Grievance Regress Mechanism (GRM). Stakeholder consultations to inform the ESSA Addendum began during the early stages of preparation. Public consultations on the ESSA Addendum involved both Program stakeholders and affected parties. The ESSA Addendum includes the consultation minutes and a summary of how stakeholder comments have been addressed in the document. Morocco has established grievance mechanisms at both institutional and constitutional levels, with multiple channels in place to support independence and accessibility, including at the local level. The Program will ensure that these systems are inclusive, accepting anonymous grievances when related to activities supported by the Program. The Program’s implementing agency will disclose the ESSA Addendum and a summary in the local language (Arabic) on its website and public areas around the Program sites. AIIB has disclosed the documents in an appropriate and timely manner prior to the approval of the Program. 

Monitoring and Reporting Arrangement. The Program builds on the existing monitoring and evaluation systems of each implementing entity, with streamlined reporting through established channels to the Ministry of Economic and Finance biannually and upon activity completion. The Project Implementing Unit coordinates monitoring across RAs, ensures data quality and submits the following to AIIB and the World Bank: (a) biannual progress reports, (b) a midterm review, and (c) a final report on Implementation Completion and Results. As the lead co-financier, the World Bank will supervise the Program and serve as the main focal point vis-à-vis the Borrower. AIIB will maintain an active supervisory role in partnership with the World Bank, which includes conducting joint field support missions.