By Nibal Zgheib

The European Bank for Reconstruction and Development (EBRD), Bank Al-Maghrib and Groupement Professionnel des Banques du Maroc (GPBM) are joining forces to support climate and environmental risk management and to promote green finance in Morocco.

The three organisations have signed a memorandum of understanding to establish a framework of cooperation on the implementation of Directive 5/W/21 on financial risk management issued by Bank Al-Maghrib, Morocco’s central bank, last year.

The goals of the Directive are to encourage the country’s financial sector to address and manage financial risks related to climate change and the environment, and to spur new commitments from Moroccan banks on sustainable finance.

Through this cooperation, the EBRD, Bank Al-Maghrib and GPBM aim to raise awareness and build the capacity of regulated stakeholders on climate and environmental risk management topics and to promote green finance.

EBRD President Odile Renaud-Basso said: “I am delighted to sign this memorandum today and to team up with Bank Al-Maghrib and GPBM to guide the financial sector in Morocco on how to manage financial risks related to climate change and the environment and to promote green finance. This is an important step in bringing together the skills, resources and reach needed to help local financial institutions take climate action and to contribute to the country’s green transition.”

Morocco is a founding member of the EBRD and became an investee economy in 2012. To date, the EBRD has invested more than €3.2 billion(US$3.4billion) in the country through 83 projects.