Financing Environmental Policies in Morocco: Infrastructure and Institutional Mechanisms.

تمويل السياسات البيئية في المغرب: البنية التحتية والآليات المؤسساتية

Abstract

This study examines the architecture, operational mechanisms, and current dynamics of environmental financing in Morocco. Through a comprehensive analysis of theoretical foundations, institutional frameworks, and empirical financing mechanisms, the research evaluates the effectiveness of Morocco's environmental financing system in supporting its ecological transition. The study analyzes key instruments including green taxation (Pigouvian heritage), dedicated public funds (FODEP, FNPEDD, FDE), blended finance mechanisms, and green bonds. It also examines multi-level governance coordination between the State and territorial communities. The findings reveal that while Morocco has established a solid legal and institutional foundation with over 60 environmental texts and pioneering initiatives such as MASEN's 2016 green bond and the GEFF program, the system remains constrained by structural weaknesses: fragmented instruments, insufficient price signals (lack of operational carbon tax), imperfect multi-level governance, and limited volumes mobilized by innovative instruments. The study concludes that optimizing the Moroccan environmental financing model requires strengthening fiscal coherence, stabilizing governance frameworks, and scaling up blended finance and green bond mechanisms to meet the ambitious target of reducing greenhouse gas emissions by 53% by 2035.