Morocco advances green finance taxonomy to guide sustainable investment

Morocco has launched a public consultation on its future Green Financial Taxonomy, a framework designed to define which economic activities qualify as environmentally sustainable. The initiative brings together the Ministry of Economy and Finance, Bank Al Maghrib, the Moroccan Capital Market Authority, the Insurance and Social Welfare Supervisory Authority, and the Ministry of Energy Transition and Sustainable Development. The consultation remains open until July 31, 2026, allowing financial institutions, businesses, investors, experts, and citizens to submit feedback before the framework is finalized.

The Green Financial Taxonomy is intended to create a national reference system for sustainable finance. It will provide banks, investors, insurers, and companies with a common set of criteria to identify projects that support climate objectives. The framework is expected to improve the allocation of capital toward environmentally responsible investments while strengthening the assessment of climate related risks.

Built on scientific and technical criteria, the taxonomy will classify economic activities according to their contribution to environmental goals. Authorities aim to direct financing toward projects that reduce greenhouse gas emissions or help the economy adapt to climate change. The framework is also expected to support the development of sustainable finance products and improve consistency in project evaluation across the financial sector.

The first phase focuses on three sectors with significant climate impact: energy, transport, and industry. These sectors account for a large share of emissions and offer substantial opportunities for reductions through low carbon technologies and infrastructure investments. Authorities are seeking stakeholder input on the proposed technical criteria, the clarity of the framework, and the conditions required for its gradual implementation.

Beyond investment guidance, the taxonomy is designed to improve transparency in the sustainable finance market. By establishing clear and standardized criteria, it aims to distinguish projects that deliver measurable environmental benefits from those that make unsupported sustainability claims. This approach is expected to reduce the risk of greenwashing and strengthen confidence among investors and financial institutions.

The project is being developed with technical support from the World Bank and Expertise France, a member of the French Development Agency Group. It forms part of Morocco’s Climate Finance Development Strategy through 2030 and supports the country’s climate commitments, including its Nationally Determined Contribution 3.0 and the National Low Carbon Strategy 2050.

To support the consultation process, authorities have released several reference documents. These include a chapter dedicated to climate change mitigation, covering activities that contribute to reducing greenhouse gas emissions, and another chapter focused on climate adaptation, highlighting activities that strengthen resilience to climate risks. A detailed frequently asked questions document has also been published to help stakeholders understand the proposed framework.

Comments and recommendations can be submitted by email until July 31, 2026. Feedback gathered during the consultation will be used to finalize a framework expected to play a central role in expanding green finance and mobilizing sustainable investment across Morocco.