Casablanca – Morocco has secured a fresh boost to its climate-transition agenda with the approval of a $200 million loan from the Asian Infrastructure Investment Bank (AIIB), marking a significant step in the country’s efforts to adapt to worsening climate impacts and reduce greenhouse-gas emissions. The financing, recently approved by the bank’s executive board, forms part of a wider climate-funding architecture totaling $900 million dedicated to supporting Morocco’s revised Nationally Determined Contribution (NDC).

The financing package complements the World Bank’s Program-for-Results (PforR)—a $350 million operation aimed at supporting climate governance, environmental resilience, and public-finance reforms—along with an additional $350 million committed by the Moroccan government. Together, these resources constitute one of the most comprehensive climate-support programs currently deployed in North Africa, reflecting the growing urgency of Morocco’s adaptation and mitigation needs.

Strengthening climate-data systems and early-warning capabilities

A core component of the AIIB loan is dedicated to modernizing Morocco’s climate-data infrastructure. The country has experienced a steady rise in temperature—an average increase of 0.2°C per decade since the 1960s, twice the global average—leading to more frequent heatwaves, floods, and droughts. Improving access to high-quality, real-time climate information has therefore become a strategic priority.

The loan will finance the acquisition and deployment of new permanent meteorological radars across the country. These systems are expected to significantly enhance Morocco’s forecasting accuracy, strengthen early-warning systems, support disaster-risk management, and improve air-quality monitoring. The radars will also provide essential data for climate-planning tools used by decision-makers in agriculture, water management, energy, and infrastructure development.

In parallel, the program will reinforce national governance frameworks through increased institutional capacity in green public-finance management, sustainable-finance mechanisms, and climate-risk reporting. These reforms aim to integrate climate considerations into public investment decisions and strengthen the country’s overall climate-governance ecosystem.

Energy transition and resilience of critical infrastructure

Another central focus of the program is the reinforcement of Morocco’s renewable-energy infrastructure. Hydropower and wind energy—two of the country’s most strategic renewable resources—have been increasingly affected by climate volatility. Periods of drought, for example, directly reduce hydropower output, placing additional pressure on the national electricity system.

The AIIB loan will support the optimization, digitalization, and climate-proofing of hydropower and wind-energy installations. This includes upgrades to turbines and grid-integration systems, efficiency improvements, and measures to mitigate climate-related operational risks. The goal is to enhance system stability while increasing the share of renewables in the national energy mix.

These efforts reinforce Morocco’s long-term objective of developing a resilient, low-carbon energy model aligned with its commitments under the Paris Agreement, which include a target of reducing emissions by 45.5% by 2030, with 18.3% achieved unconditionally.

Support for oasis regions and climate-resilient agriculture

One of the program’s most socially impactful pillars focuses on strengthening agricultural value chains in Morocco’s oasis regions—areas particularly vulnerable to water scarcity, soil degradation, and rising temperatures. The AIIB financing will provide direct support to agricultural and para-agricultural cooperatives, helping establish and modernize processing units for date-palm products, which represent a crucial economic resource for local communities.

The loan will also back large-scale planting programs involving drought-resistant and indigenous species such as argan, carob, date palm, olive, almond, cactus, and caper. These initiatives are designed both to restore ecosystems and to diversify income sources for rural populations. In addition, specialized research programs will target the improvement of argan and date-palm cultivation techniques, contributing to broader efforts to protect genetic resources and enhance agricultural resilience.

Traditional water-management infrastructure and other ancestral will also be rehabilitated to improve efficiency and preserve scarce water resources. These measures are essential for maintaining agricultural productivity and ensuring the sustainability of oasis ecosystems.

A stronger role for AIIB in global climate finance

AIIB, created in 2015 to support infrastructure development across its member states, has rapidly emerged as a key player in global climate finance. The bank now counts more than 110 member countries, including 19 from Africa. Its growing climate portfolio includes investments in sustainable energy, urban resilience, water security, and digital technologies, with a specific focus on supporting emerging economies in their transition toward low-carbon development.

The new operation in Morocco strengthens AIIB’s footprint in the region and reinforces the country’s access to diversified sources of climate finance. More importantly, it aligns with Morocco’s strategic vision to enhance climate resilience, modernize environmental infrastructure, and safeguard vulnerable communities.

With climate risks intensifying, the $200 million commitment represents not just a financial contribution, but a strategic partnership aimed at accelerating Morocco’s shift toward a more resilient, sustainable, and inclusive economic model.