Morocco Pledges Complete Coal Phase-Out by 2040, Seeks $30B Climate Funding for COP30

Morocco's Ambitious Plan to Eliminate Coal by 2040

Morocco has made a bold commitment to eliminate coal from its energy mix by 2040, marking one of the most significant climate initiatives in the country’s history. This pledge, announced just weeks before COP30 in Belém, Brazil, highlights Morocco’s growing role as a leader in Africa’s energy transition. However, the success of this plan depends heavily on securing approximately $30 billion in international climate financing.

Energy Transition Minister Leïla Benali confirmed that Morocco will no longer develop any new coal-fired power plants and is preparing for the gradual retirement of existing ones. She emphasized that this shift is part of a broader strategy to move toward cleaner, locally sourced energy. According to Benali, contractual reforms and public-private investments will play a crucial role in supporting this transition.

Currently, coal accounts for nearly 60 percent of Morocco’s electricity generation, according to the Powering Past Coal Alliance. This heavy reliance on coal makes Morocco one of the most coal-dependent countries in Africa. The dependence on imported coal exposes the nation to market volatility and supply chain disruptions, which the government aims to address through an accelerated expansion of renewable energy sources.

Morocco’s updated Nationally Determined Contribution (NDC), submitted to the United Nations, outlines ambitious targets. The country aims to cut greenhouse gas emissions by 53 percent by 2035 and generate over 80 percent of its electricity from renewable sources by 2040. These goals are built upon a decade of substantial investments in solar, wind, and green hydrogen projects. Key developments in Ouarzazate, Tarfaya, and Guelmim have positioned Morocco as a regional energy hub.

The 2040 coal exit remains conditional on international support. In its submission, the energy ministry stated that without sufficient funding, Morocco will continue its decarbonization efforts but without a fixed end date for coal phase-out. Analysts view this as both a demonstration of ambition and a reminder of the financial challenges faced by developing economies.

This move comes at a time when major donors, including the European Union and the World Bank, are urging African nations to align with global decarbonization goals while advocating for more equitable access to funding. The push for international support underscores the importance of collaboration in achieving sustainable energy transitions.

Key Components of Morocco's Energy Transition Strategy

• Coal Phase-Out: Morocco has committed to eliminating coal from its energy mix by 2040. This involves stopping the development of new coal-fired power plants and gradually retiring existing ones.
• Renewable Expansion: The country is investing heavily in solar, wind, and green hydrogen projects. These initiatives are expected to provide over 80 percent of Morocco’s electricity by 2040.
• Climate Financing: Securing around $30 billion in international climate finance is critical to achieving the 2040 coal exit. Without adequate funding, the timeline for phasing out coal may remain uncertain.
• Energy Security: Reducing reliance on imported coal will help mitigate the risks associated with market volatility and supply disruptions.
• International Collaboration: Partnerships with organizations like the European Union and the World Bank are essential for ensuring fair access to funding and support for decarbonization efforts.

Challenges and Opportunities

Despite its ambitious goals, Morocco faces several challenges in implementing its energy transition strategy. The financial gap between what is needed and what is available remains a significant hurdle. Additionally, the transition requires careful planning to ensure that the shift away from coal does not disrupt energy supply or economic stability.

However, the opportunities presented by this transition are substantial. By investing in renewable energy, Morocco can reduce its carbon footprint, enhance energy security, and position itself as a leader in Africa’s clean energy movement. The country’s experience in large-scale renewable projects provides a solid foundation for future growth.