Green finance: an African perspective

During its presidency of the 22nd session of the Conference of Parties (COP 22), the Kingdom of Morocco confirmed its ambitious commitments to reduce its carbon footprint while pushing for support for Africa’s efforts to adapt to the impacts of climate change. Morocco, like other countries in Africa, is particularly vulnerable to the effects of climate change, particularly soil degradation and diminishing natural resources, including water, despite being a minor contributor to the principal cause of climate disruption, namely greenhouse gas emissions. This vulnerability has necessitated a comprehensive review of Morocco’s environmental strategy and a transition to a more ecologically responsible economy in order to strengthen its climate resilience. This article provides an overview of the climate change challenges facing the economies of both Morocco and Africa, and looks at the dangers and opportunities for the continent’s financial sector, which must rally to support the implementation of the Nationally Determined Contributions pledged by African countries at the Paris Agreement and to help in their transition towards a more sustainable economy. It also explains the role that the Kingdom’s financial authorities can play in order to contribute to the emergence of African green finance, thanks to their close cooperative ties with their counterparts in Africa and the Moroccan financial sector’s strong presence across the continent.