partnership for market readiness maroc mrp_02 mai 2014.pdf1.2 energy profile 15 1.3 historic and...

اململكة املغربية

KINGDOM OF MOROCCO

Partnership for Market Readiness

Market Readiness Proposal for

Morocco

Version 5.2

May 2, 2014

Market Readiness Proposal MOROCCO

2

Proposal prepared by:

By: Noémie Klein, Alyssa Gilbert, Long Lam, Isabelle de Lovinfosse (Ecofys)

Mounir Temmam, Mounira Boussetta, Andalus Ben Driss (ECI)

Chris Peddie-Burch (SFW)


3

Acronyms

ADA: Agence de Développement Agricole – Agricultural Development Agency

ADEREE: Agence de Développement des Energies Renouvelables et de l’Efficacité Energétique –

Agency for the Development of Renewable Energy and Energy Efficiency

AMDL: Agence Marocaine de Développement de la Logistique - Moroccan Agency for Logistics

Development

APC: Association Professionnelle des Cimentiers – Professional Association of Cement

Producers

A/R: Afforestation/Reforestation

BUR: Biennial Update Report

CCCC: Centre de Compétence du Changement Climatique – Competence Centre for Climate

Change (4C)

CERED: Centre d’Etudes et des Recherches Démographiques - Centre for Demographic Studies

and Research

CIC: Climate Innovation Centre

CNCC: Comité National des Changements Climatiques - National Climate Change Committee

CNEDD: Charte nationale de l’Environnement et du Développement Durable - National Charter

for Environment and Sustainable Development

CNST: Comité National Scientifique et Technique - National Scientific and Technical

Committee

CoP: Conference of the Parties

CO2: Carbon dioxide

CSI: Cement Sustainability Initiative

CSP: Concentrated Solar Power

DMN: Direction de la Météorologie Nationale - National Directorate of Meteorology

DPCC: Direction du Partenariat, de la Communication et de la Coopération – Directorate of

Partnership, Communication, and Cooperation

EC: European Commission

EU: European Union

EU ETS: European Union Emissions Trading System

FEC: Fonds d’Equipement Communal – Municipal Equipment Fund

FDE: Fonds de Développement Énergétique – Energy Development Fund

FFEM: Fonds Français pour l’Environnement Mondial – French Global Environmental Fund

FIRM: Facilitating Implementation and Readiness for Mitigation

FVA: Framework for Various Approaches

GDP: Gross Domestic Product

GEF: Global Environment Facility

GHG: Greenhouse Gas

GIZ: Deutsche Gesellshaft für Internationale Zusammenarbeit

GNR: Getting the Numbers Right

HCEF-LCD: Haut-Commissariat aux Eaux et Forêts et à la Lutte Contre la Désertification - High

Commission for Water and Forests and the Fight against Desertification

HCP: Haut-Commissariat au Plan - High Commission for Planning

IDB: Islamic Development Bank

INC: Initial National Communication

IPCC: Intergovernmental Panel on Climate Change

KP: Kyoto Protocol


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ktCO2: Kilotonnes of carbon dioxide

ktCO2e: Kilotonnes of carbon dioxide equivalent

ktoe: Kilotonnes of oil equivalent

LECB: Low Emission Capacity Building

LEDS: Low Emission Development Strategies

MAD : Moroccan Dirham

MAEC: Ministère des Affaires Étrangères et de la Coopération – Ministry of Foreign Affairs and

Cooperation

MAGG: Ministère des Affaires Générales et de la Gouvernance - Ministry of General Affairs and

Governance

MAPM: Ministère de l’Agriculture et de la Pêche Maritime - Ministry of Agriculture and Marine

Fisheries

MASEN: Moroccan Agency for Solar Energy

MBI: Market-Based Instrument

MdE: Ministère délégué auprès du Ministre de l’Énergie, des Mines, de l’Eau et de

l’Environnement, chargé de l’Environnement. Deputy ministry to the Minister of

Energy, Mining, Water, and Environment, in charge of the Environment

MCINET: Ministère de l’Industrie, du Commerce, de l’Investissement et de l’Economie

Numérique. Ministry of Industry, Commerce, Investment, and Digital Economy

MEDENER: Association méditerranéenne des agences nationales de maîtrise de l'énergie

Mediterranean Association of the National Agencies for Energy Conservation

MEF: Ministère de l’Economie et des Finances - Ministry of Economy and Finances

MEMEE: Ministère de l’Energie, Mines, Eau et Environnement - Ministry of Energy, Mining,

Water and Environment

MENA: Middle East and North Africa

MHPV: Ministère de l’Habitat et de la Politique de la Ville – Ministry of Housing and Urban

Policy

MI Ministère de l’intérieur - Ministry of the Interior

MRP: Market Readiness Proposal

MRV: Monitoring, Reporting, Verification – Suivi, Notification, Vérification

MT: Ministère délégué auprès du Ministre de l'Equipement, du Transport et de la

Logistique, chargé du Transport – Deputy Ministry to the Minister of Equipment,

Transportation, and Logistics, in charge of Transportation

Mt: Megatonne

MtCO2: Megatonne of carbon dioxide

MtCO2e : Megatonne of carbon dioxide equivalent

Mtoe: Megatonne of oil equivalent

MUATN: Ministère de l’Urbanisme et de l’Aménagement du Territoire National – Ministry of

Urban Planning and National Territory Planning

NAMAs: Nationally Appropriate Mitigation Actions

NAP: National Adaptation Plan

NMM: New Market-based Mechanism

OCP: Office Chérifien des Phosphates - National Phosphates Company

ONEE: Office Nationale de l’Electricité et de l’Eau potable / Branche électricité - National

Electricity and Drinking Water Office / Electricity Branch

PCCM: Politique du Changement Climatique au Maroc – Morocco’s Climate Change Policy

PERG: Programme d’Électrification Rurale Global – Global Rural Electrification Program

PGPE: Programme de Gestion et de Protection de l’Environnement - Program for

Environmental Management and Protection


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PMR: Partnership for Market Readiness

PMU: Project Management Unit

PMV: Plan Maroc Vert - Green Morocco Plan

PNDM: Programme National des Déchets Ménagers - National Solid Waste Programme

PNEI: Pacte National d’Emergence Industrielle - National Pact for Industrial Development

PNR: Plan National de Reboisement - National Reforestation Plan

PNRC: Plan National de lutte contre le Réchauffement Climatique - National Plan against

Global Warming

PoA: Programme of Activities

PV: Photovoltaic

RE: Renewable Energy

REDD: Reducing Emissions from Deforestation and Forest Degradation

RGPH: Recensement Général de la Population et de l’Habitat - General Population and

Housing Census

SBI: Subsidiary Body for Implementation

SBSTA: Subsidiary Body for Scientific and Technological Advice

SEEE: Secrétariat d’Etat chargé de l’Eau et de l’Environnement - State Secretariat in charge

of Water and the Environment (replaced in 2014 by the Deputy ministry to the

Minister of Energy, Mining, Water, and Environment, in charge of the Environment)

SIE: Société d’Investissements Énergétiques – Energy Investment Company

SI-GES: Système d’Information de l’inventaire des GES - GHG Inventory Information System

SNC: Second National Communication

SWH: Solar Water Heater

tCO2: Tonnes of carbon dioxide

tCO2e: Tonnes of carbon dioxide equivalent

TNC: Third National Communication

toe: Tonnes of oil equivalent

UNDP: United Nations Development Programme

UNEP: United Nations Environment Programme

UNFCCC: United Nations Framework Convention on Climate Change

3C: Consistent, credible, and compatible

4C: Competence Centre for Climate Change


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Table of contents

Background information 10

PMR Focal Point Morocco 10

MRP Preparation Team 10

Executive Summary 11

1 Country context 14

1.1 Economic background and trends 14

1.2 Energy profile 15

1.3 Historic and projected emissions trends 17

1.4 Climate policy 21

1.5 Summary of MRP’s proposed approach 25

2 Preparatory work to support and inform policy decisions on market instruments 26

2.1 Policy context and analysis of the role and implications of using market-based

instruments as mitigation tools 26

2.1.1 MRP general approach 26

2.1.2 MRP activities - Analysis of appropriate mitigation instruments for Morocco and

support for the establishment of MBI governance & mid-term review 32

2.2 Rationale for the selection of sectors 34

2.2.1 Electricity generation 37

2.2.2 Cement production 41

2.2.3 Phosphates extraction and processing 45

2.2.4 Energy efficiency in commercial buildings 51

2.2.5 Transport 53

2.2.6 Other sectors 55

2.3 Summary of the MRP’s proposed activities 58

3 Core technical, institutional and regulatory market readiness components 59

3.1 Data management and MRV 59

3.1.1 Current situation (institutional level) 59

3.1.2 Current situation (sectoral level) 60

3.1.3 MRP activities – Data management and MRV systems 64

3.2 Target/goal setting 71

3.2.1 Current situation (institutional and sectoral levels) 71

3.2.2 MRP Activities – Preparing to set targets 73

3.3 Registry 75

3.3.1 Current situation 75

3.3.2 MRP Activity – Implementation of a registry 75

3.4 Institutional and regulatory framework 76

3.5 Summary of activities proposed in the MRP 77

4 Planning for a market-based instrument 78

4.1 Types of MBI 78

4.2 Assessment and initial selection of an MBI for the three sectors covered by the MRP 78

4.3 Preparation for the implementation of a sectoral crediting scheme 79


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4.3.1 Current sectoral crediting schemes 79

4.3.2 MRP Activities – Design of a sectoral crediting mechanism 80

4.4 Summary of activities proposed in the MRP 83

5 Organization, communication, consultation and engagement 84

5.1 Organisational structure of the process 84

5.1.1 Key stakeholders 84

5.1.2 Stakeholder engagement process 85

5.1.3 MRP Activity – Coordinating the implementation of the MRP 87

5.2 Capacity building 89

5.2.1 Capacity building during the MRP preparation phase 89

5.2.2 MRP Activities – Capacity building during the MRP implementation phase 90

5.3 Summary of proposed MRP activities 91

6 Summary of activities, schedule and budget 92

6.1 Activities proposed in the MRP 92

6.2 PMR funding request 97

6.3 Summary diagram 98

6.4 Risks and mitigation measures 99

7 Sources 100

8 Annexes 103

8.1 CDM project and PoA portfolio (October 2013, source: MdE) 103

8.2 Approaches for setting a mitigation target/objective 106

8.3 Types of mitigation instruments 107

8.4 Programmes of international MRP missions 110


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Figures

Figure 1 Energy Balance Trend in Morocco, 2002 – 2012 16

Figure 2 Predicted installed capacity per fuel type, in % of total installed MW

17

Figure 3 Historical GHG net emissions in Morocco 18

Figure 4 GHG emissions trends 2000-2030 20

Figure 5 Preparation plan for the implementation of MBIs in Morocco and workflow of proposed MRP

activities 31

Figure 6 Mitigation potential by 2030 37

Figure 7 Energy mix for electricity generation in 2012 38

Figure 8 Wind and solar resources available in Morocco 39

Figure 9 Distribution of the electricity production by type of producer in 2012 40

Figure 10 Overview of cement plants and mills and expansion projects in Morocco 42

Figure 11 Evolution of total emissions from the cement sector in Morocco 43

Figure 12 Evolution of specific emissions from the cement sector in Morocco (tCO2/t cement) 44

Figure 13 Mining sites, chemical processing facilities and phosphates-dedicated ports in the

phosphates sector in Morocco

46

Figure 14 Production process in the phosphates sector 46

Figure 15 Possible development of market based instruments in Morocco 79

Figure 16 Institutional structure for the preparation of the MRP 85

Figure 17 Stakeholder engagement and consultation activities during preparation of the MRP 87

Figure 18 Institutional structure of the project 88

Figure 19 Summary diagram of activities – in chronological order 98

Figure 20 An emissions trading system and a crediting system 108


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Tables

Table 1 Selected assumptions for the projection of GHG emissions by 2030 19

Table 2 National, regional and international initiatives providing support for GHG mitigation in

Morocco 25

Table 3 Selection criteria for sectors to be covered by the MRP 35

Table 4 Evaluation table and sector selection 36

Table 5 Distribution of emissions from the electricity generation sector in Morocco 38

Table 6 Distribution of emissions from the cement sector in Morocco 43

Table 7 Distribution of emissions from the phosphates sector in Morocco 47

Table 8 Registered CDM projects and PoAs in Morocco in the three sectors covered by the MRP 49

Table 9 Summary of Building Block 1 activities 58

Table 10 Current institutional framework relating to data management 59

Table 11 MRV and data management in the three sectors covered by the MRP 61



Table 14 Stakeholders involved in the preparation for the carbon market 84


Table 16 Summary of activities (deliverables, timeline and budget) proposed in the MRP 92

Table 17 PMR funding request 97

Table 18 Inherent risks to the implementation of the MRP and proposed mitigation measures 99


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Background information

PMR Focal Point Morocco

Name Sabah Benchekroun Maria Oucible Mohamed Benyahia

Organisation Ministry of General Affairs and Governance

Ministry of Economy and Finance

Deputy Ministry to the Minister of Energy, Mining, Water, and Environment, in charge of the Environment

Title Special Advisor to the Prime Minister, International Cooperation Directorate

Head of Division, Multilateral Funding

Director of Partnership, Communication, and Cooperation

Address BP 412 RP Rabat, Royaume du Maroc

Administratif, Agdal, Rabat Royaume du Maroc

Hay Riad, Rabat Royaume du Maroc

Telephone +(212) 537 68 73 16 +(212) 537 67 72 71 +(212) 537 57 66 37

Fax +(212) 537 77 42 87 +(212) 537 67 72 17 +(212) 537 57 66 38

Email [email protected]

[email protected]

[email protected]

Website http://www.affaires-generales.gov.ma/

http://www.finances.gov.ma/

http://www.environnement.gov.ma

MRP Preparation Team

Name Organization

Mohamed Benyahia

Deputy ministry to the Minister of Energy, Mining, Water, and Environment, in charge of the Environment

Rachid Firadi

Azdine Daaif

Souad El Asraoui

Sabah Benchekroun Ministry of General Affairs and Governance

Saloua Jemjami

Maria Oucible Ministry of Economy and Finance

Said El Yaagoubi

Adrien de Bassompierre

World Bank

Andrew Losos

Manaf Touati

Soumia Driouch

Malika Drissi

Abdelmourhit Lahbabi ADS

Noémie Klein

Ecofys Alyssa Gilbert

Long Lam

Isabelle de Lovinfosse

Mounir Temmam

ECI Mounira Boussetta

Andalus Ben Driss

Chris Peddie-Burch SFW

mailto:[email protected]






http://www.affaires-generales.gov.ma/

http://www.affaires-generales.gov.ma/



http://www.environnement.gov.ma/

http://www.environnement.gov.ma/


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Executive Summary

Morocco committed itself early and voluntarily to the international effort against climate change by

joining the United Nations Framework Convention on Climate Change (UNFCCC) during the 1992 Rio

Summit. Since then, Morocco was an early participant in the Clean Development Mechanism (CDM)

under the Kyoto Protocol and has explored the different types of nationally adapted mitigation

instruments such as NAMAs and the UNFCCC new market-based mechanism. These efforts will be

consolidated in Morocco’s Climate Change Policy (Politique du Changement Climatique au Maroc -

PCCM) currently under preparation. Within the vision of that Policy, market-based instruments (MBIs)

will be among the key tools for the implementation of mitigation efforts in Morocco.

In view of the country’s economic context and the international situation of the carbon market,

including the low demand for credits, the Moroccan government considers the implementation of a

crediting mechanism in three key sectors of the economy (electricity generation, cement

production, and phosphates processing) as a promising opportunity to encourage mitigation efforts.

The government wishes to establish this mechanism over the coming six years, both to generate

quality carbon credits and to be capable of integrating with an international system at the appropriate

time. The selection of the mechanism and the sectors and the commitment of the government are the

results of consultations between the governmental departments and the relevant sectors.

The Moroccan government wishes to use the funding from the Partnership for Market Readiness

(PMR) to establish the foundation needed for this sectoral crediting mechanism. This ‘no regret’

approach will be beneficial regardless of the evolution of the national and international context and for

all mitigation instruments the Moroccan government decides to put into place, whether market-based

or not. If the national and international signals are positive, particularly concerning the demand for

carbon credits, the government will be ready to advance and implement the next phase of activities

to operationalize the mechanism. The government plans to submit a second funding request from

the PMR to cover part of this further tranche of activities. This second tranche of activities will also

cover the preparation for the implementation of MBIs in additional sectors of the Moroccan economy.

The Market Readiness Proposal (MRP) presents the governmental roadmap to implement the sectoral

crediting mechanism. Proposed activities are organized around a central axis of data management

and Monitoring, Reporting and Verification (MRV). The activities of this axis will strengthen

capacity in Morocco in terms of GHG emissions data collection, management and processing at the

level of national institutions and the facilities in each sector. The focus will be on developing a system

that is appropriate for a crediting mechanism while ensuring flexibility to allow its adaptation based on

the evolution of the national and international context. This central axis is supported by:

Activities aimed at supporting the definition of a national strategy for MBI

implementation in Morocco. These activities will examine the different mitigation

instruments available to the government of Morocco and the relative weight of the MBIs in the

possible mix of instruments. They will enable the establishment of a governance system to

manage various general and MBI-specific greenhouse gas mitigation issues in Morocco. They

will also strengthen relevant stakeholders’ capacities in both the public and private sectors.

Sectoral activities that build market readiness in the three sectors covered in the MRP and

enable the development of the institutional and operational tools needed for MBI

implementation. These activities will support the creation of a regulatory framework needed

for mitigation in each sector, the definition of sectoral baselines, and the evaluation of the

mitigation potential of each sector. The focus on electricity generation, cement production,

and phosphates extraction and processing will allow an in-depth evaluation of carbon market


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preparation methods involving a limited group of participants, and will enable active exchange

of experiences between sectors while remaining within the grant amount allocated by the

PMR.

Pilot activities, which will start with MRV under this tranche of funding. All three sectors are

promising for the development of MBIs, and are interconnected with other economic sectors,

and pilot activities in these three sectors will allow other sectors to prepare for MBIs. Another

type of piloting, to operationalize the sectoral crediting mechanism with purchase of credits, is

planned for the second tranche of activities should demand for such credits exist.

The MRP mirrors the vision of the Moroccan’s government on MBIs: the first tranche of PMR funding

will cover the activities that will lay down the foundation for MBIs, and a second tranche activities will

enable the operationalization of these MBIs. The figure below shows specifically the activities that the

first tranche of PMR funding will enable.

The Moroccan government is requesting a first tranche of grant funding of USD 3,000,000 from the

PMR. All efforts will be made to have the PMR grant disbursement arrangements in place by the end

of 2014. Should that be achieved, the Project Management Unit will be established at the beginning of

2015 and the other activities will start during the second quarter of 2015, once the terms of reference

are prepared and the external entities recruited.


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Preparation plan for the implementation of MBIs in Morocco and workflow of proposed MRP activities

MBIs in

Morocco

Design and piloting of other instruments (e.g. tax,

emissions trading scheme, non-market based instrument)

Analysis mitigationinstruments + governance MBI

2015 2018 202020172016 2019

Design MRV system+ piloting (3 sectors)

Design IT platform for data management et MRV + piloting (3 sectors)

Scaling-up MRV system (other sectors)

Mitigation potential(3 sectors)

Baselines (3

sectors)

Implementation regulatory framework (3 sectors)

Design + piloting crediting mechanism (3 sectors)

Project Management Unit (PMU)

Capacity building (sectors, institutions)

Design verification/accreditation system + piloting (3 sectors)

National registry

Evaluation + scaling-up (other sectors)

Crediting thresholds (3 sectors)

Baselines and crediting thresholds (other sectors e.g. transport)

Market-based Instruments

Governance

Review

Central axis on data management - MRV

Foundation for MBIsActivities part of the 1st tranche

of PMR funding

Legend

Design and operation ofMBIs

Activities envisaged for a 2nd

tranche


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1 Country context

1.1 Economic background and trends1

In recent years Morocco has achieved a remarkable economic performance. The country has

experienced an average annual growth rate of about 4.6% for the 2006-2012 period, in an

unfavourable international context marked by a global economic crisis as well as by the political and

social instability generated by the Arab Spring.

The contribution of the tertiary sector to the growth of Gross Domestic Product (GDP) was significant

over the same period, with an average growth rate of 5%. The added value of the primary sector has

increased annually by 4.8% on average. This trend is the result of the limited dependence of the

agricultural production on climate variations and of efforts to modernize and enhance the sector. The

secondary sector remains the weak link of the Moroccan economy with an average growth rate of

3.1% between 2006 and 2012. In parallel with this robust growth, emissions of greenhouse gases

(GHG) may have increased according to national predictions (see section 1.3) but their level remains

relatively modest, making Morocco a low emitter compared to other countries in the region.

Nevertheless an economic slowdown was witnessed in 2012, with a Gross Domestic Product (GDP)

growth of just 3.2%. This was due to a poor agricultural season, widening twin deficits (trade and

budget), the depletion of foreign exchange reserves, falling tourism revenues, the lack of bank

liquidity, and the erosion of household purchasing power. Economic growth should nevertheless

return to its previous upwards trend, driven by good performance in the agricultural sector, while the

secondary sector recovers modestly due to the low foreign demand, mainly from countries from the

Euro zone. It should be noted that beyond its significance for the economy, the agricultural sector

plays an important social role as it employs about 40% of the Moroccan population.

Morocco’s current account has experienced another downturn and export growth has decreased by

5.5% in 2012 while the trade deficit grew from 22.8% to 24.3% of GDP. After a year of virtual

stagnation, the decreasing trend in exports was confirmed in 2013, particularly with the import of

phosphates and derivatives and the decline of 23.3% of the export revenue of the National

Phosphates Company (Office Chérifien des Phosphates or OCP) cumulating at 37.1 billion dirhams at

the end of 20132. On the other hand, slowing imports have been strongly affected by increasing

energy expenses. Morocco has limited conventional energy resources and virtually depends on foreign

energy supply to meet the increasing demand related to its economic growth. This strong dependency

might gradually lessen in the future given Morocco’s huge potential and commitment for renewable

energy (see section 1.4; renewable energy represents about 10% of electricity generation in 20123,

with the objective of an installed capacity of 42% by 20204). In the meantime, the national economy

remains highly vulnerable to any upsurge in the price of oil, particularly in the current context of the

reform of the compensation system in Morocco leading to a liberalization of oil prices.

1 Data collected in the Bank al Maghrib Annual Report for 2012, published in July 2013 and from the 2014 Financial and Economic Report,

published by the Ministry of Economy and Finance. 2 Conjecture note – January 2014, published by the Ministry of Economy and Finance. 3 ONEE (2012) 4 MEMEE (2013b)


15

Despite continuing signs of an economic slowdown, notably a deterioration in fiscal and external

balances, the Central Bank’s most recent forecasts predict growth around 4% for 2013, with a

contained inflation at around 2.1%. For 2014, the growth is predicted to be around 4% based on an

average agricultural season, an assumption that seems to be confirmed by the registered rainfall5.

The rise and resilience of the Moroccan economy, especially in a difficult international context, are

explained by the importance of structural reforms underway and the implementation of new sectoral

plans, such as:

The National Industrial Emergence Pact (Pacte National d’Emergence Industrielle - PNEI),

which aims to revitalize industry;

The Green Morocco Plan 2020 (Plan Maroc Vert 2020), whose main objective is to

modernise agriculture, and the Emergence Plan for Phosphates (Plan Emergence pour les

Phosphates);

The New National Energy Strategy (Nouvelle Stratégie Energétique) adopted in 2009,

which primarily aims to strengthen the security of supply, energy availability and its

widespread accessibility at reasonable costs;

The Vision 2020 for the Tourism Sector (Stratégie Touristique Nationale Vision 2020),

which aims to make this sector an economic powerhouse;

The National Management Plan for Household and Similar Waste (Plan National de gestion

des Déchets Ménagers et assimilés PNDM);

The National Master Plan for Hazardous Waste (Plan Directeur National des Déchets

Dangereux PDNDD);

The National Strategy for the Development of Logistical Competitiveness for the Transport

Sector (Stratégie Nationale pour le Développement de la Compétitivité Logistique); and

The Halieutis Plan for the development of new dynamics for fisheries.

It should be noted that the implementation of these sector-wide plans associated with the robust

growth in household consumption (vehicles, household items, etc.) considerably influence energy

needs, which are projected to increase in the coming years at an average annual rate of 5%6. This

growth will probably be associated with a substantial increase in GHG emissions as the energy sector

contributes to over 52% of the total emissions in Morocco, followed by the agricultural sector with

31% (data for 2004, see section 1.3)7.

1.2 Energy profile8

Morocco strongly depends on the import of hydrocarbons. Poor in fossil fuels and experiencing a

significant economic, industrial, and social evolution, the country covers its deficit by importing most

of its supplies. The consumption of primary energy has considerably increased over the last decade,

by about 6%9 annually, from 10.5 megatonnes of oil equivalent (Mtoe) in 2002 to 17.7 Mtoe in 2012,

leading to a dependency rate of 96% for that year (see Figure 1). Consumption per inhabitant per

year has increased substantially, from 0.36 toe in 2002 to 0.54 toe in 2012. However, this rate

remains relatively modest compared to the world average of about 1.7 toe10.

5 Prediction of the Ministry of Economy and Finance under the 2014 Finance Act 6 MEMEE (2013b) 7 SEEE (2009b) 8 MEMEE (2012b) 9 MEMEE (2013b) 10 MEMEE (2013b)


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The main factor is the increase of net energy demand, which grew continuously from 15,539 GWh in

2002 to 31 056 GWh in 2012. This increase is mainly due to the near-universality of rural

electrification following the Global Rural Electrification Program (PERG) and to the dynamic national

economy.

Figure 1 Energy Balance Trend in Morocco, 2002 – 2012 (Source: MEMEE (2012b))

National consumption is characterized by the predominance of oil products, representing 61% in 2012

and the largest imported product, followed by coal. Massively used for electricity generation, oil

products have increased to represent 22% of the total consumption of energy in 2012. Natural gas

has increased slightly but only represented less than 7% of the total energy consumption in 2012.

The various scenarios predict an exponential trend in primary energy demand, mainly due to the

strong economic growth over the last decade, which should gain momentum after the implementation

of various sectoral plans (examples in section 1.1) established to develop major sectors in Morocco.

Energy demand is also impacted by population growth associated with rising living standards. In light

of those predictions and to limit its energy dependency, in 2009 Morocco adopted an ambitious

energy strategy going forward to 2030 to mitigate its dual dependency on fossil fuels and on foreign

imports. Environmental protection and sustainable development are at the core of this new strategy,

which focuses on energy efficiency and the renewable energy potential available in Morocco to ensure

supply and keep demand under control.

The energy mix should experience major changes by 2020 due to an increase in the share of

renewable energy and the implementation of the national energy efficiency program. Based on the

projections in the new energy strategy, the expected diversification of the electricity generation

capacity by 2020 should be as follows:


17

Figure 2 Predicted installed capacity per fuel type, in % of total installed MW (Source: MEMEE (2013b), ONEE

(2012))

1.3 Historic and projected emissions trends

According to data from the 1994 GHG National Inventory produced as part of the Initial National

Communication (INC, 2001), and from the Second National Communication’s (SNC, 2010) reference

years of 2000 and 2004, Morocco’s total GHG emissions increased by 56% between 1994 and 200411.

The creation of inventories in line with the methodology recommended by the United Nations

Framework Convention on Climate Change (UNFCCC) and that of the Intergovernmental Panel on

Climate Change (IPCC) has allowed the emissions generated by Morocco to be accounted for in each

of the most emissions-intensive sectors, namely: Energy, Industry, Agriculture, Forestry and Waste

(see section 2.2).

It is useful to note here that emissions from the energy sector are produced by:

Fixed combustion sources, which includes the energy industry, manufacturing and

construction, commercial buildings, residential buildings, agriculture and fisheries; and

Mobile combustion sources, including all modes of transport.

Therefore, the energy sector represents more than half of all emissions generated and is by far the

main emitter of carbon dioxide (CO2) and GHGs in general in Morocco. Emissions from this sector also

experienced a net increase of approximately 46% from 1994 to 2004.

The agricultural sector ranks second with a contribution to overall emissions of approximately 31% in

the reference year 2004, while emissions from other sectors (industry, forestry and waste) contribute

to 17% of overall emissions that same year. It should be noted that for some sectors, such as the

cement sector, only CO2 emissions are considered GHG.

11 Source: SEEE (2009b)


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Figure 3 Historical GHG net emissions in Morocco (Source: SEEE, 2009)

The analysis of GHG emissions in Morocco shows that the main factors impacting their increase

include:

A rapid and variable demographic growth in the 20th century, with an annual growth rate of

over 3% in the 1950s to a rate of 1.4% in 2004 and 1.1% in 2007;

The socioeconomic development that influences the consumption patterns of the population;

Economic development through the consumption of energy by the productive sectors; and

Regional planning and land-use.

The projection of GHG emissions by 2030 is based on assumptions for the relevant sectors, as

illustrated in Table 1, below.


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Table 1 Selected assumptions for the projection of GHG emissions by 2030 (Source: SCN)

Selected assumptions for the assessment of GHG emissions by 2030

Population Evolution of the total population despite a slowing growth rate: population estimated at 38 million

Rural exodus and extension of urban centres (percentage of urban population = 64.2%).

Energy

Electricity: Introduction of renewable energy (RE) and increase of national production by about

140%;

Consumption of primary energy estimated at 32.7 ktoe.

Industrial

processes

Cement industry: Growth rate from 3% to 4%12;

Other emitting industrial activities: growth rate of 6.92%, equal to the average rate of the last

three periods.

Agriculture

Production increase for various crops (cereals, legumes, oilseed, vegetables, etc.) based on the

different strategies established by the Ministry of Agriculture;

Livestock trends related to increasing consumption of red meat (2.05% annually for cattle and

3.68% for sheep) and white meat (8%).

Forests Reduction in the use of firewood mainly due to 1) Change of lifestyle in urban centres 2) Easy

access to butane gas in rural areas, 3) Gradual exhaustion of available biomass.

Waste

Waste production increase of 3% per year due to 1) Population growth, 2) Fast urbanization, 3)

Evolution of consumption patterns, 4) Organization of solid waste management.

Waste production is expected to reach 14 megatonnes (Mt) in 2030.

The assumptions expressed above lead to an expected average increase in total GHG emissions of

3.72% between 2000 and 203013. Over the same period, net per capita emissions would grow from

2.29 to 5.12 tCO2eq, an average annual increase of 2.75%, exceeding the estimated rate of

population growth of 0.94%.

12 Source: APC. 13 The calculation assumptions and the GHG emissions projections will be reviewed as part of the TNC in preparation.


20

Figure 4 GHG emissions trends 2000-2030 (Reproduced from SEEE, 2010)

Regarding the process of collecting data and preparing national inventories, Morocco is aware of the

importance of establishing an GHG Inventory Information System (Système d’Information de

l’inventaire des GES, SI GES) backed by formal institutional processes, in order to overcome the

shortcomings related to casual data collection for the purposes of an inventory. With this in mind, a

feasibility study for the implementation of such a SI GES took place with the support of the World

Bank. Previous inventories (1994 and 2000) were analysed in a critical manner and data required for

the establishment of a SI GES were mapped. This allowed 1) the creation of a proposal for

institutional arrangements for the regular and accurate establishment of GHG inventories, 2) the

identification of capacity building needs and 3) the development of a plan of action. The first actions

relating to the development of the SI GES are included in the Third National Communication (TNC).

Annual activity data for the period 2005-2012 will be collected as part of the TNC, and will allow the

update of national GHG inventory for the years 2006, 2008, 2010 and 2012. Capacity building efforts

relating to the methodologies, techniques and tools for preparation of a national GHG inventory will

also be implemented as part of the TNC, and will assist the work of the team charged with putting the

future SI GES in place. These actions are expected to take place in 2014.

Other institutional capacity building measures and techniques will be included in a new project to be

implemented by GIZ between 2013 and 2015, relating to the establishment of a Centre for Climate

Change Competencies (4C – see Table 2). This project, which will enhance the implementation of the

cross-cutting themes of ‘Improving knowledge and observation’ and ‘Promoting research, innovation

and technology transfer’ from Morocco’s Climate Change Policy (Politique du Changement Climatique

au Maroc, PCCM – see section 1.4), will support, among other things, the activities put in place by

the SI GES.


21

1.4 Climate policy

Morocco committed itself early and voluntarily to the international effort against climate change by

joining the UNFCCC during the 1992 Rio Summit14. Since then, Morocco has implemented a number

of activities and programmes that confirm its voluntary commitment. These activities also provide the

foundation for a transition towards a green economy aimed at achieving responsible growth by

preserving the environment and ecosystems, reducing GHG emissions and adapting to the effects of

climate change. These activities have enabled Morocco to distinguish itself and become a leading

figure in Africa and in the Middle East and North Africa (MENA) region in the fight against global

warming.

Moroccan international engagement under the UNFCCC

Morocco is considered a leader among developing countries in terms of compliance with international

reporting commitments under articles 4 and 12 of the UNFCCC. Relevant measures include:

Preparation of national communications:

o Submission of the INC in 2001;

o Submission of the SNC15 in 2010;

o Preparation for the implementation of the Cancun Agreements (CoP 16). This is

underway through the elaboration of the TNC, due in late 2014, and the

establishment of a SI GES16 to support potential Biennial Update Reports (BURs);

Organisation of the 7th Conference of the Parties (CoP 7) in Marrakech in 2001 and active

participation in other CoPs with the organisation of and participation in side events and in the

work of the subsidiary bodies, including the Subsidiary Body for Scientific and Technological

Advice (SBSTA) and the Subsidiary Body for Implementation (SBI);

Submission to the UNFCCC Secretariat, on 29 January 2010, of a list of ideas for Nationally

Appropriate Mitigation Actions (NAMAs) in response to the Copenhagen Accord. These NAMAs

cover the energy, transport, industry, waste, agriculture, forestry and housing sectors. For

the majority of actions, Morocco has also provided the annual mitigation potential in tCO2e as

well as the required implementation period;

Submission to the UNFCCC Secretariat on 25 March 2013 of Morocco’s views on the work

program, modalities and procedures for a new market-based mechanism (NMM), in response

to COP 18 decisions in Doha (paragraphs 50 and 51 of the decision -1/CP.18) (see section

2.1.1 for more details on the contents of the submission).

Institutional and organisational framework

Upon ratification of the UNFCCC, Morocco launched an initiative to create a progressive institutional

framework through the establishment of various structures, including:

A National Climate Change Committee (Comité National sur les Changements Climatiques -

CNCC) in 1996;

A National Scientific and Technical Committee on Climate Change (Comité National

Scientifique et Technique sur les Changements Climatiques - CNST-CC) in 2001;

A Climate Change Unit (Unité Changements Climatiques - UCC) created in 2001 within the

Department of Environment. This unit is the UNFCCC national focal point and works with other

institutions such as the National Meteorology Directorate (Direction de la Météorologie

Nationale - DMN), which serves as the IPCC focal point;

14 Morocco signed the UNFCCC in Rio in 1992 and ratified it in 1995. 15 SEEE (2010) 16 World Bank (2011a)


22

A Clean Development Mechanism Designated National Authority (CDM DNA) in 2002;

Other climate change units and officials within other ministerial/government departments.

Within the new dynamics in Morocco, particularly with regard to sustainable development through the

adoption of Bill 99.12, a Framework Law for the National Charter of the Environment and Sustainable

Development17 (CNEDD) and the ongoing development of the National Sustainable Development

Strategy (SNDD), the institutional framework for climate change needs to be reassessed. Reviews are

underway to evaluate the adequate options for the implementation of a new institutional framework

for climate change, aligned to the new sustainable development governance required by the

Framework Law for the CNEDD.

Climate Change Policy in Morocco ‘PCCM’ (under preparation)

The activities implemented since ratification of the UNFCCC

have been used as building blocks for the preparation of a

Climate Change Policy (Politique du Changement Climatique

au Maroc, PCCM), which is currently being developed. The first

elements were provided by the INC and SNC, and have

allowed for the preparation of the National Plan against Global

Warming (Plan National de lutte contre le Réchauffement

Climatique, PNRC)18, which was introduced in 2009 in

conjunction with CoP 15 in Copenhagen. Building on various

sectoral programmes and strategies, the PNRC is a portfolio of

mitigation and adaptation measures. More recently, a process

to prepare strategic climate change guidelines was launched

with the support of GIZ and other donors and financial

institutions.

These strategic guidelines will help to provide Morocco with a

PCCM that contains a National Vision 2030 linked to the

expected timeframes for fulfilment of all relevant sectoral

strategies, and that has political support at both national and international levels (see Box 1).

Launched in 2011, the development of the PCCM is being carried out through the organisation of

different workshops and meetings bringing together different stakeholders, including the Deputy

Ministry in charge of the Environment (MdE) and an inter-ministerial committee comprised of

representatives from all ministries and public institutions concerned with climate change. The

document is currently being developed by the MdE and its formal adoption by the government is

expected in 2014.

This PCCM will be based on two principles: i) decoupling economic growth from GHG emissions,

particularly through the use of clean technologies; and ii) preserving the country’s territory and

ecosystems in the most appropriate manner, by responding effectively to national vulnerabilities and

by developing an adaptation policy that will prepare the general population and economic

stakeholders to address those vulnerabilities.

17 The Framework Bill n°99.12 was adopted on January 8, 2014 at the House of Representatives of the Moroccan Parliament. This Framework

Bill still needs to be adopted at the level of the House of Councilors of the Parliament. 18SEEE (2009a)

Box 1 Climate Change Policy in

Morocco

Morocco aims to achieve sustainable,

low-carbon development resilient to the

impacts of climate change, and to

contribute to global efforts against

climate change.

The National Vision 2030 was

established to adopt coherent sectoral

and inter-sectoral strategies, some of

which have already aligned themselves

to this timeframe. The PCCM is intended

as a flexible and dynamic instrument

combined with a monitoring and

evaluation tool that will allow for

necessary refinements over time.


23

Experience with market-based instruments (MBIs)

In order to participate in the global effort to mitigate GHGs and consolidate and strengthen its

national sustainable development policy, Morocco was an early participant in the Clean Development

Mechanism (CDM), one of the MBIs prepared under the Kyoto Protocol. It therefore ratified the Kyoto

Protocol in 2002 and at the 7th CoP (Marrakech, 2001) pushed to ensure that legislation implementing

the Protocol and its flexible mechanisms were adopted.

As part of this commitment, Morocco set up its DNA in 2002 and has implemented a series of capacity

building activities for project developers and national experts, as well as activities raising awareness

of the CDM at both the national and international level.

As of October 201319, Morocco is ranked 4th in Africa in terms of registered CDM projects, with 14

projects and 3 PoAs, which have a total emissions reduction potential of 2.4 MtCO2e/y.

The main sectors involved in the CDM in Morocco are: wind energy (first registered CDM wind farm in

Africa, and a PoA registered at the end of 2012), biomass energy, waste management, and solar

energy. Although a portfolio of CDM projects has been developed in recent years, only a fraction of

the total CDM potential has so far been realised. This is mainly due to the complexity of the

mechanism and its constantly changing rules, the criteria for proving financial additionality, the

transaction costs, and the limited experience available in the country due to the need to bring in

external specialist consultants.

NAMAs and capacity building

At the international level, Morocco is also involved in non-market based instruments. Morocco has

proceeded to develop an initial portfolio of NAMA ideas bringing together the main mitigation actions

recommended by the PNRC, presented at a side event at CoP 15 in Copenhagen (2009). Morocco’s

voluntary commitment was confirmed through its Mitigation Pledge submitted in response to the

Copenhagen Accords in January 2010. This Pledge was accompanied by a list of 43 appropriate

mitigation actions covering the energy, transport, industry, waste, agriculture, forestry and buildings

sectors.

In this initial portfolio, three NAMA concepts were developed in 2011 for the renewable energy sector

and the waste sector, with World Bank support. These three NAMAs are associated with the Moroccan

Solar Plan (Plan Solaire Marocain)20, the National Wind Energy Programme (Programme National

Eolien)21 and the National Solid Waste Programme (Programme National des Déchets Ménagers –

PNDM)22 respectively, and will be further elaborated and improved through donor-funded projects

currently in operation. These donor-funded projects will also support the development of NAMAs in

other sectors, including energy efficiency in buildings, transport, agriculture, and industrial processes

(see LECB and FIRM projects in Table 2).

In the same context, three NAMA concepts were developed by the Agency for the Development of

Renewable Energy and Energy Efficiency (ADEREE) in partnership with the MdE. The three projects

were presented during the WBI/WB and RCREEE workshop in Marseille in 2012:

19Source: Moroccan CDM-DNA 20World Bank (2011b) 21World Bank (2011c) 22World Bank (2011d)


24

1) Construction NAMA for widespread implementation of Moroccan thermal regulations in the

construction sector;

2) NAMA for solar photovoltaic (PV) pumping for irrigation at a national scale;

3) NAMA for a national program to distribute solar PV kits connected to the LV/MV grid.

In terms of capacity building, Morocco has benefited recently from activity relating to the monitoring,

reporting and verification (MRV) of GHG emissions by the Japanese Environment Ministry, as part of a

programme also aimed at 11 other African countries to use a MRV model on a pilot project in the

transport sector.

In relation to international climate change negotiations, the Moroccan delegation has benefited from

capacity building assistance before each CoP since 2010, under the Programme for Environmental

Protection and Management (Programme de Protection et de Gestion de l’Environnement, PGPE)

implemented by GIZ and the MdE.

Currently, Morocco is benefiting from several capacity building projects and programmes, as well as

technical assistance in GHG mitigation (see Table 2). Some of these projects fall under the scope of

international initiatives (FIRM, LECB, and CDM/JI Initiative projects), while others fall under regional

initiatives (Clima South project), or directly under national bilateral or multilateral projects. Together,

these initiatives are designed to build technical and institutional capacity in Morocco for the design

and development of NAMAs, the implementation of MRV systems, the preparation of national

strategies for low carbon development, and the ongoing international dialogue on the future

development of the carbon market. The activities proposed as part of the PMR presented in this

document were set to take into account the direction that the Morocco government is taking as part

of its PCCM, as well as its involvement in international climate negotiations and in ongoing

international initiatives aimed at strengthening Morocco’s mitigation capacity. The next Building Block

of the document describes the approach the MRP will take and explains the process used for selecting

the sectors covered by the MRP.


25

Table 2 International initiatives providing support for GHG mitigation in Morocco23

Project Implementing

agency

Implementing

partner in

Morocco

Expected project outcomes & Budget24 Duration

PMR World Bank MAGG/MEF/

MdE

Preparation of the MRP as a preliminary step to obtaining the PMR

grant

Implementation of MRP activities to establish the foundation and

operationalise MBIs in the electricity, cement and phosphates sector.

From 2013

LECB UNDP MdE

Development of a LEDS for Morocco;

Development and implementation of a portfolio of three NAMAs

(agriculture, buildings, waste);

Development of MRV systems for priority NAMAs and capacity

building for relevant stakeholders;

Improving awareness of low carbon development and south-south

transfer of know-how in this field.

Budget: USD 749,000.

2013-2015

FIRM UNEP MEMEE/Energy

Establishment of a framework for the development and

implementation of a national strategy for low carbon development

(energy sector);

Identification of priority NAMAs and support for the development of

1 to 2 NAMAs (solar).

Budget: USD 300,000.

2013-2015

CIC

World Bank –

Climate

Technology

Initiative25

Currently being

validated

The CTI supports access to new climate technologies for innovative

businesses in Morocco, including SMEs, by providing financing,

advisory services, access to technology and information, and

international networking.

Currently

being

validated

CDM/JI

Initiative GIZ MdE

Capacity building relating to NMMs;

Sharing of best practice and international carbon market

experiences.

Budget: EUR 3,790,000.

2012-2015

Clima

South EU MEMEE

Identification and development of LEDS and NAMAs and estimations

of their GHG emissions;

MRV capacity building;

Improved regional cooperation on MRV, NAMAs and LEDS

Budget: EUR 5,000,000.

2013-2016

4C GIZ MdE

Institutional capacity building

Development of instruments such as the GHG emissions information

system (SI GES)

Stakeholder capacity building

International dialogue and sharing of experiences

Budget: EUR 2,000,000

2013-2015

TNC UNDP MdE

Updating the Moroccan data on GHG inventory

Updating the GHG mitigation analysis

Updating the assessment of Morocco’s vulnerability to CC and the

major directions for adaptation to CC

Defining national needs for capacity building and technology

transfer;

Budget: EUR 530,000

2013-2015

1.5 Summary of MRP’s proposed approach

No activities are proposed in this section of the MRP.

23Table 2 presents the program and the main projects to support the GHG mitigation policies in Morocco and cannot be considered exhaustive

or complete. 24 Budget figures are provided based on information available 25World Bank (2012a)


26

2 Preparatory work to support and inform policy

decisions on market instruments

2.1 Policy context and analysis of the role and implications of using market-based instruments as mitigation tools

2.1.1 MRP general approach

The PMR initiative is part of the Moroccan government’s broader reflection on the country’s

integration into the international carbon market. The new MBIs which are currently emerging as part

of the UNFCCC international negotiations (known as the New Market-based Mechanisms, or NMMs)

and at the national level in certain countries (e.g. pilot emissions trading schemes in China) show the

level of interest among the international community towards using MBIs as key instruments in the

fight against climate change. This interest is a response to the growing need to reduce emissions in

order to limit global temperature rise to 2 degrees while minimising the costs of mitigation.

As discussed in Building Block 1, the Moroccan government is closely following the developments of

the carbon market, and in March 2013 voiced its opinion on the NMM in its submission to the UNFCCC

Secretariat in response to the decisions of CoP 18 in Doha26. In it, Morocco indicated that the post-

2012 international framework should consider both market-based and non-market-based new

mechanisms, by also including a sectoral/sub-sectoral approach in addition to a project-based one.

The government of Morocco is currently formalizing its intent to explore MBIs other than the CDM in

the PCCM (under development). Under this political vision, MBIs will constitute one of the

implementation tools of the climate change mitigation strategy (see section 1.4).

The selection, design, and implementation of MBIs must take into account both the national context

and the international situation. In particular, the following points should be considered:

Morocco represents approximately 0.15% of worldwide GHG emissions27. Morocco’s

contribution to global mitigation efforts should take into account the concept of effort

sharing.

Morocco is a developing country and is not intending to set binding emissions reduction

targets at either the national or the sectoral level in the short run.

The Moroccan government is currently in the process of developing the PCCM but

has not yet evaluated the different mitigation mechanisms that could be used in

Morocco and their potential impact. Any MBI development will need to keep in line with

the development of the PCCM and ensure it is integrated into this framework. A thorough

analysis of all types of tools to mitigate GHG emissions, both market based and non-market

based, and of their impact on the Moroccan economy is a pre-requisite before any approach

can be selected for implementation.

Morocco has significant experience with the CDM and would be able to draw on this

experience when designing and implementing other MBIs. Any new MBI should be able to

combine simplicity and efficiency with environmental integrity and should contribute to

capacity building in Morocco, at both the sectoral and institutional level.

26 Paragraphs 50 and 51 of decision -1/CP.18 27 Calculated from data for 2010 available in the European Commission’s EDGAR database


27

At the international level demand for carbon credits is low. Countries have not yet

agreed on how to update and adjust their GHG reduction targets, which has maintained

uncertainty in terms of future demand for such credits. Artificial demand could be created by

setting up funds to purchase carbon credits from MBIs other than the CDM, such as from a

sectoral crediting mechanism. Morocco will consider the progress of such initiatives to update

its roadmap for the implementation of MBIs. However no such fund has been established to

date.

At the international level, under the UNFCCC, the rules governing the NMMs have

not yet been defined. The CDM therefore remains the only UNFCCC MBI open to Morocco,

and it is not currently possible to develop a NMM that can be recognised by the UNFCCC.

It is too early to set up a domestic emissions trading scheme in Morocco. There are

certain preconditions necessary for the establishment of such a system, such as the setting of

a binding emissions reduction target, which is not expected to happen in Morocco in the near

future. In addition, there are not enough potential participants in each of the three sectors

covered in the MRP to create a liquid market, and joining an existing market or linking to such

a market needs comprehensive preparation domestically. A crediting system, with non-

binding targets, which does not lead to penalties for non-compliance with targets, and which

does not require a minimum number of participating installations, seems therefore more

suitable for Morocco, at least initially.

In view of the country’s economic context and the international situation of the carbon market,

including the low demand for credits, the Moroccan government plans to evaluate the implementation

of a crediting mechanism in three key sectors of the economy (electricity generation, cement

production, and phosphates processing) as a promising opportunity to encourage mitigation efforts.

The government wishes to develop such a mechanism within the next six years, both to generate high

quality carbon credits and to be capable of integrating with an international system at the appropriate

time. The selection of the mechanism and of the sectors and the achievement of government

commitment are the results of consultations between government departments and the various

sectors. The MRP activities will consolidate these choices and help explore other options.

The Moroccan government wishes to use the funding from the PMR to establish the foundation

required for the sectoral crediting mechanism. This ‘no regret’ approach will be beneficial regardless

of the evolution of the national and international context and for all mitigation instruments the

Moroccan government decides to put into place, whether market-based or not. This aspect will be

reviewed in detail during the mid-term review (see Activity 2). At the end of the activities covered by

the first tranche of PMR funding, Morocco will have the necessary capacities to advance and

implement the next phase of activities to operationalize the mechanism, should the national and

international signals be positive, particularly concerning the demand for carbon credits. The

government plans to submit a second funding request from the PMR to cover part of this further

tranche of activities. This second tranche of activities will also cover the preparation for the

implementation of MBIs in additional sectors of the Moroccan economy.

The MRP presents the governmental roadmap to implement the sectoral crediting mechanism. The

proposed activities are structured around a central axis on data management and MRV. The activities

of this axis will strengthen capacity in Morocco in terms of GHG emissions data collection,

management and processing at the installation level. The type of MRV system will depend on the

choice of mitigation instrument. The focus will be on developing a system that is appropriate for a

crediting mechanism while ensuring flexibility to allow its adaptation based on the evolution of the

national and international context.


28


29

This central axis is supported by:

Activities aimed at supporting the definition of a national strategy for MBI

implementation in Morocco. These activities will enable the establishment of a governance

system to manage various general and MBI-specific GHG mitigation issues in Morocco. They

will also help the identification of the relevant mitigation instruments and will strengthen

relevant stakeholder capacity in both the public and private sectors.

Sectoral activities that build market readiness in the three sectors covered in the MRP and

enable the development of the institutional and operational tools needed for MBI

implementation. These activities will support the creation of a regulatory framework needed

for mitigation in each sector, the definition of sectoral baselines, and the evaluation of the

mitigation potential of each sector. The focus on electricity generation, cement production,

and phosphates extraction and processing will allow an in-depth evaluation of carbon market

preparation methods involving a limited group of participants, and will enable active

exchange of experiences between sectors while remaining within the grant amount allocated

by the PMR.

Pilot activities, which will start with MRV under this tranche of funding. As discussed in

section 2.2, the three sectors covered are promising for the development of MBIs and are

interlinked with other economic sectors, and pilot activities in these sectors will allow other

sectors to prepare for MBIs. Another type of piloting, to operationalize the sectoral crediting

mechanism with purchase of credits, is planned for the second tranche of activities should

demand for such credits exist.

Other countries under the PMR are exploring similar topics (e.g. MRV in Turkey, Thailand and

Indonesia) and/or working in similar sectors (e.g. cement in Tunisia and Indonesia). Morocco will seek

to maximize the synergies and experience sharing with such initiatives.

The MRP mirrors the vision of the Moroccan’s government on MBIs: the first tranche of PMR funding

will cover the activities that will lay down the foundation for MBIs, and a second tranche of activities

will enable the operationalization of these MBIs. Figure 5 below shows specifically the activities that

the first tranche of PMR funding will enable.

All efforts will be made to have the PMR grant disbursement arrangements in place by the end of

2014. The Project Management Unit (see section 5.1.3) would be established at the beginning of 2015

and the other activities could start during the second quarter of 2015, once the terms of reference are

prepared and the external entities recruited.

The sequence of activities proposed in the MRP is shown in Figure 5 below. Tables describing each

activity in more detail can be found in the following sections of this MRP. The numbers shown in

Figure 5 refer to the number of each activity, which is also included in the description tables. The

numbering follows the order in which the activities are presented in subsequent sections of the MRP.


30

MBIs in

Morocco

Design and piloting of other instruments (e.g. tax,

emissions trading scheme, non-market based instrument)

Analysis mitigationinstruments + governance MBI

1

2015 2018 202020172016 2019

Design MRV system+ piloting (3 sectors)

3

Design IT platform for data management et MRV + piloting (3 sectors)

5

Scaling-up MRV system (other sectors)

6

Mitigation potential(3 sectors)

Baselines (3

sectors)

Implementation regulatory framework (3 sectors)

10

Design + piloting crediting mechanism (3 sectors)

11

Project Management Unit (PMU)13

Capacity building (sectors, institutions)14

Design verification/accreditation system + piloting (3 sectors)

4

National registry

9

Evaluation + scaling-up (other sectors)

12

Crediting thresholds (3 sectors)

11 Baselines and crediting thresholds (other sectors e.g. transport)

12

Market-based Instruments

Governance

Review2

Central axis on data management - MRV

Foundation for MBIsActivities part of the 1st tranche

of PMR funding

Legend

Design and operation ofMBIs

Activities envisaged for a 2nd

tranche

7

8


31

Figure 5 Preparation plan for the implementation of MBIs in Morocco and workflow of proposed MRP activities


32

2.1.2 MRP activities - Analysis of appropriate mitigation instruments for Morocco and

support for the establishment of MBI governance & mid-term review

The first proposed activity under the MRP (Activity 1) aims to support the government in the analysis

of the role and implications of using MBIs as mitigation tools, in order to help make an informed

choice of the instrument(s) to use, and to implement a system of governance for MBIs in Morocco.

A range of mitigation policy instruments is available. This includes not only different carbon pricing

methods (two main MBIs, crediting schemes and emissions trading schemes, and also taxes) but also

other instruments that do not directly set a price on a tonne of CO2, such as financial incentives or

regulatory measures (see section 4.1 for more details on each of these instruments). A choice of

instrument can only be made after a thorough analysis of the impact that each of these can have on

both a given sector and on the Moroccan economy. The type of instrument to introduce can differ

depending on the type of sector, the sector’s level of involvement in the PCCM, and previous

experience available both in Morocco and at the international level. The Moroccan government has not

yet thoroughly evaluated each of the different instruments and their potential effects. Activity 1 will

enable such evaluation and inform the future decisions on MBIs by the Moroccan government. It will

be based on the initial overview of policies presented in the MRP and will review the optimal use of

MBIs as part of the available range of instruments. Activity 1 will also examine the interaction of

proposed MBIs with selected instruments in place or planned, domestically and internationally (e.g.,

the CDM, the EU ETS, the NMM), including carbon leakage risks and potential synergies.

Selection of instruments should also be supported by effective governance, of both GHG mitigation

generally and MBIs in particular. At the institutional level, issues relating to the current MBI, the CDM,

are addressed by the National CDM Board, a body created in 2002 following a ministerial decision.

This Board is composed of representatives from government departments, the private sector and non-

governmental organisations. The experience of this Board will need to be applied in the development

of an operational framework for stakeholder consultation and coordination, as well as in the

development of an effective MBI governance system and of a clear mandate for the approval and

implementation of new pilot market mechanisms. In addition to the National CDM Board, the current

institutional CC framework consists of the National Climate Change Committee (Comité National des

Changements Climatiques, CNCC) and the National Scientific and Technical Committee on CC (Comité

National Scientifique et Technique sur les CC, CNST-CC). Different studies on national climate change

governance have been undertaken in Morocco with support from the World Bank and GIZ. These

studies helped to propose possible CC governance structures for Morocco. They will be capitalized

under the enforcement of the Framework Law on CNEDD, which is in its final phase of enactment and

will institute the national governance framework for CC, with a large political scope, to fully play its

role of strategic orientation and sectoral arbitration including for MBIs. Activity 1 will help coordinate

such initiatives and support the implementation of adequate MBI governance.

The second proposed activity (Activity 2) is a mid-term review of the progress of Morocco to prepare

MBIs in general and of the implementation of the sectoral crediting mechanism for three sectors in

particular. It will be important to assess progress in light of national and international developments,

particularly the demand for carbon credits, in order to plan for the coming years. This will also provide

the opportunity to prepare a second request for a PMR grant.


33

Activity 1 Analysis of appropriate mitigation instruments and MBI governance for Morocco

To be implemented in the period 2015-2017, as part of a first tranche of PMR funding

Activity objectives

This activity aims to assist the Moroccan government in evaluating different mitigation

instruments, including MBIs, in order for the government to make an informed decision

on which instruments should be applied in Morocco and to assist the government in

setting up a governance system for MBIs in Morocco.

Activity description

√ Development of a Marginal Abatement Cost (MAC) curve for the Moroccan economy

√ An analysis of barriers to implementation of different mitigation options (including

technical, institutional and financial barriers)

√ Proposal of mitigation targets (technical and/or financial contributions to this study

may be provided from ongoing projects, such as the TNC and LECB, as well as other

initiatives such as the World Bank’s Energy Sector Management Assistance Programme

(ESMAP))

√ Development of a detailed overview of existing policies and their interactions

√ Identification of different possible mitigation instruments in Morocco (carbon pricing:

crediting, emissions trading, taxes; or other policy instruments such as fiscal incentives

and/or regulatory measures)

√ Analysis of the impact on emissions and cost to sectors of implementation of different

mitigation instruments. These will cover different scenarios in different sectors, including

the three covered by the MRP, considering how different policies interact. A simple Excel

model based on bottom-up assumptions will be used

√ Assessment of the interaction of such mitigation instruments with selected instruments

in place or planned domestically and internationally (e.g., the CDM, the EU ETS, the

NMM), including carbon leakage risks and potential synergies

√ Analysis of elements and components that can inform the establishment of an

institutional (governance) framework on issues relating to the carbon market

√ Recommendations on the implementation of a MBI (instrument type, structure,

governance), in line with other mitigation instruments. These recommendations will take

into account the lessons learnt with the CDM

√ Consultation, training and stakeholder engagement workshops, with contributions from

international experts

√ Workshops presenting the results of the study

Deliverables

A study with the following results:

- A MAC curve for the national economy

- Analysis and recommendation on which instruments to implement, for each

sector, with a focus on the three sectors covered by the MRP

A proposal for an appropriate government framework

Estimated budget

(USD) 600,000

Entity responsible Deputy ministry to the Minister of Energy, Mining, Water and Environment, in charge of

the Environment (MdE)/DPCC, Ministry of Finance (MEF) and PMU-PMR

Schedule Duration: 18 months (interim results after 6 and 12 months)

Timeline: Q3 2015 – Q4 2016


34

Activity 2 Mid-term review


Activity objectives

This objective of this activity is to review the progress of Morocco’s preparation for MBIs

in general and the implementation of a sectoral crediting mechanism in particular, as well

as to prepare a second request for a PMR grant. It will be important to assess the

progress in light of national and international developments, particularly the demand for

carbon credits, in order to plan for the coming years in terms of activities and funding.

Activity description

√ Review of the results of implemented activities

√ Review of the evolution of the national and international context, particularly of the

demand for carbon credits and its impact on Morocco’s preparation strategy for MBIs

√ Definition of a detailed roadmap for the next MBIs preparation and implementation

stages in Morocco

√ Evaluation of financial needs for the implementation of the roadmap

Deliverables

Workshops

Review report

New funding request to PMR

Estimated budget

(USD) 150,000

Entity responsible MdE/DPCC, MEF and PMU-PMR

Schedule Duration: 3 months

Timeline: Q2 2016

2.2 Rationale for the selection of sectors

In order to better prepare Morocco for the implementation of an MBI, it is important to initially focus

efforts on a few specific sectors via a pilot scheme, and to then share the lessons learned with other

sectors in a second phase.

The identification of the sectors to be covered by the MRP was made in consultation with various

national stakeholders during the development of firstly the PMR Organising Framework and then that

of the MRP. While preparing the Organising Framework eight sectors were identified. The evaluation

and selection of the three sectors out of those eight to be covered by the MRP were guided by the

criteria presented in Table 3. These criteria are based on the MRP guidance documents prepared by

the PMR Secretariat28.

28 World Bank (2012a)


35

Table 3 Selection criteria for sectors to be covered by the MRP

Selection criteria Description

Mitigation potential The sector has a significant mitigation potential

Non-GHG sustainable

development benefits

Implementation of GHG mitigation measures in the sector offer sustainable

development co-benefits as well as GHG emissions reductions, such as a reduction in

energy, water and raw materials consumption, reduced air pollution and job creation

National sectoral

experience with MBIs

It is possible to use the experience and lessons learned from previous sector

participation in existing MBIs, such as the CDM or the voluntary carbon market

International experience

to build upon

Lessons learned from other international emissions reduction schemes applied to the

sector internationally can be applied in Morocco

MBIs compared to other

alternative approaches

An MBI is likely to be the most appropriate way to reduce emissions within the sector,

compared to other possible approaches such as emission standards, financial

incentives or capacity building

MRV experience It is possible to apply experiences and lessons learned by the sector in relation to MRV

to other sectors

Concentration of actors

and focal points

Actors in the sector are concentrated and few, and/or the sector is centrally organised

(e.g., there is a sector association and/or a focal point representing the whole sector)

Lessons learned that would

be applicable to MBI

development in other

sectors

Carbon market development efforts in the sector can contribute to market readiness

and development of MBIs in other sectors

Other policies/initiatives

covering these sectors

Initiatives other than the PMR and/or policies are already covering mitigation efforts

and activities to build readiness for the development of MBIs in the sector

Analysis of each sector is discussed in detail in sections 2.2.1 to 2.2.6 and is summarised in Table 4.

For each selection criterion, a binary score was attributed for each sector. A ‘' sign indicates that the

criterion is not relevant or not applicable, and a ‘’ indicates that the criterion is relevant and/or

applicable.


36

Table 4 Evaluation table and sector selection

Selection criteria Electricity Cement Phosphates Commercial

buildings Transport Waste Agriculture Forestry

Mitigation potential

Non-GHG sustainable development

benefits

National/sectoral experience with

MBIs

International experience to build

upon

MBIs compared to other alternative

approaches

MRV experience

Concentration of actors and focal

points

Lessons learned that would be

applicable to MBI development in

other sectors

Other initiatives/policies covering

the sectors

Evaluation result Included in the MRP Candidates for a second

PMR grant

Other initiatives underway/more

appropriate than the PMR


37

This evaluation shows that while all sectors have mitigation potential (see Figure 6) and sustainable

development benefits beyond GHG emission reductions, the electricity generation, cement, and

phosphates sectors also possess all the other necessary elements for the implementation of an MBI.

As a result they have been selected for inclusion in the first PMR grant. Energy efficiency in

commercial buildings and transport show promise for MBI development in the future, and will be able

to benefit from the experience gained during the first phase of the PMR. They are not a main focus of

this MRP but could be considered for a possible second round of PMR funding. Finally, the waste

sector is already largely covered by an MBI (a CDM PoA), the forestry sector is already covered by the

REDD mechanism, which has a market-based element known as REDD+, and the agriculture sector is

better suited to approaches that are not market-based. These three sectors are therefore not included

in this MRP.

Figure 6 Mitigation potential by 2030 (Source: Royaume du Maroc, 2012)

In sections 2.2.1 to 2.2.6 below, the main features of each of these eight sectors are described,

expanding on the evaluation presented in Table 4. Building Blocks 3 and 4 of the MRP will then focus

on the first three sectors chosen for the first phase of preparation for the new MBIs (electricity,

cement, and phosphates).

2.2.1 Electricity generation

General context. Electricity generation is one of the key sectors in the new national energy strategy

of Morocco. Given the country’s strong energy import dependence of about 96%, and rising

international energy prices, the energy bill puts a fair amount of pressure on the annual budget and

has more than quadrupled between 2002 and 2011 to reach 10 billion dollars.29 At the same time,

subsidies to the energy sector have reached USD 5 billion for petroleum products only. Morocco wants

to reduce its energy dependence and increase energy security, especially with the expected fast

growth of the economy and continuously growing energy demand. The new national energy strategy

therefore sets out measures and policies aiming to diversify the energy supply and reduce the

country’s dependence on energy imports. This does not only include the exploration of oil and the

expansion of gas use, but also the expansion of renewable energies and energy efficiency measures.

To support the implementation of the energy strategy, the Energy Development Fund (FDE) was

created in 2009 and received an allocation of MAD 1 billion from national and international sources.

29 MEMEE (2012a). Exchange rate used: MAD 1 = USD 0.1218

3%

4%

14%

67%

7%

4% 1%

Total 57.6 MtCO2/year

Transport

Buildings

Industry

Electricity generation

Waste

Agriculture

Forests


38

The FDE is managed by the Société d’Investissements Énergétiques (SIE), a public limited liability

company with the purpose of investing in projects aiming at enhancing energy production capacity.

The Fund has the objective of enhancing and maintaining energy production capacities for the

financial support of public or private operators in renewable energy and energy efficiency. Activity 1

of the MRP will review the interaction between the energy strategy and mitigation instruments,

particularly a sectoral crediting mechanism.

Mitigation potential. In 2012 total electricity generation was 26,496 GWh30. Electricity from

renewable sources was almost 10%; in terms of demand this represented 7% of the total 31,056

GWh of electricity consumption. The total installed capacity was 6,677 MW, of which 1,561 MW came

from renewables, with the majority from hydropower. In recent years emissions from electricity

generation have increased to 18,566 ktCO2e in 2011 but the emissions intensity of the sector has

reduced from 846 tCO2e/GWh in 2004 to 766 tCO2e/GWh in 201131. However, a very large portion of

the electricity produced (almost 90%) still comes from fossil fuel plants. With a projected annual

increase in electricity demand of 7% based on historical development, reaching 51,000 GWh in 2020

and 96,000 GWh in 203032, electricity produced from fossil fuels and its associated GHG emissions will

continue to grow in absolute terms. The energy mix observed in 2012 is presented in Figure 7 and the

evolution of installed power by 2020 in Figure 2 under section 1.2.

Figure 7 Energy mix for electricity generation in 2012 in % of total MWh per fuel (Source: calculated from ONEE.

2013b)

Table 5 Distribution of emissions from the electricity generation sector in Morocco

Sources of CO2 emissions Distribution of emissions from the electricity

sector in 2011

Combustion of fossil fuels 100%

Total emissions 18.6 MtCO2e

30 ONEE (2012) Morocco also imported 4.841,3 GWh in 2012, mostly from Spain and Algeria and exported 818,3 GWh (ONEE, 2013b). 31 MEMEE (2013a) 32 MEMEE (2013b)

Coal, 44.7%

Natural gas, 23.4%

Fuel oil, 21.3%

Hydro, 6.9%

Wind, 2.7%

Solar, 0.0% Diesel, 0.1% Autonomous plants, 0.3%

National third parties, 0.5%


39

Morocco possesses a considerable amount of wind and solar energy resources, as shown in Figure 8

and also hydropower resources33. The total wind potential is estimated at 25,000 MW and the

theoretical solar electricity production at over 20,000 GW34. This potential can substantially contribute

to the reduction of GHG emissions and energy dependency, as well as to the diversification of energy

supply.

Figure 8 Wind and solar resources available in Morocco (Source: MEMEE)

To tap its renewable electricity potential, Morocco has set an installed renewable electricity capacity

target of 42% by 2020 in its energy strategy evenly split between wind, solar and hydropower35. To

achieve these ambitious objectives Morocco has implemented ambitious programmes for solar and

wind energy development. The two most prominent programmes are the Moroccan Solar Energy

Programme and the Moroccan Wind Energy Programme:

The Moroccan Solar Energy Programme is one of the biggest projects of its kind in the world,

aiming to install 2,000 MW of solar power capacity by 2020 at a total estimated investment

cost of USD 9 billion. To manage this project, the Moroccan Agency for Solar Energy (MASEN)

was established in 2010. The first site, a 160 MW concentrated solar power (CSP) plant, is

under construction and planned to go into operation in 2015. The mitigation potential of the

solar program is estimated at 3.7 MtCO2/year36.

The Moroccan Wind Energy Programme is aiming to install 2,000 MW of wind power capacity

by 2020 at a total estimated investment cost of USD 3.5 billion. The implementation is split

into two stages. The implementation of a first stage of 1,000 MW is currently underway by

both public and private parties. The second stage has been initiated and is centrally managed

by the Electricity Branch of the National Office of Electricity and Drinking Water (ONEE). The

first site of the second stage is planned to go into operation in 2014. The mitigation potential

of the wind program is estimated at 5.6 MtCO2/y37. The new energy strategy goes further and

predicts an installed wind power capacity of 5,520 MW by 2030.

33 For example, it is estimated that approximately 200 sites could accommodate micro-hydro plants with capacity ranging from 15 kW to 100

kW. 34 MEMEE (2013b) 35 MEMEE (2013a) 36 Kingdom of Morocco (2012) 37 Kingdom of Morocco (2012)

WIND POTENTIAL : 25,000 MW onshore SOLAR POTENTIAL : 5.5 kWh/m2/d


40

ONEE,

49.8%

Concessions,

49.7%

National third

parties,

0.5%

ONEE has also introduced a programme to construct small solar power stations near consumption

areas. Installed capacity is 10 to 25 MW per station. Eight plants are planned so far with a total

capacity of 200 MW.

The mitigation potential of the energy generation sector represents an important part of the identified

mitigation potential for Morocco by 2030 (see Figure 6). The estimation of mitigation potential is

being revised in the context of the preparation of the TNC.

Concentration of actors and focal points. ONEE used to be the sole generator of electricity until

1994 when Decree-Law No. 2-94-503 paved the way for other players to enter the electricity

generation market. Private generators, under ONEE concessions have settled. ONEE is in charge of

planning concession projects (including the choice of location, power, technology, and production

conditions over a fixed period) and has the exclusive guarantee of supply of produced electricity for

the duration of the contract. To date, three concession agreements have been concluded. In 2010,

Law No 13-09 on renewable energy was passed. This law allows independent and self-generators of

renewable energy to enter into the generation market. In 2012, electricity production was shared

between ONEE (49.8%), private producers under concession with ONEE (49.7%)38, producers

governed by Law n°13-09 and self-generators (0.5%). Transmission of all electricity is governed by

ONEE, and all private producers have to sell to ONEE for a fixed price, and ONEE remains a central

organisation in the electricity sector. The Moroccan power grid is also interconnected with Spain and

Algeria. Privatization of electricity distribution started in 1997. Distribution is split between ONEE,

which sells around 58% of the electricity directly to end users, and other distributors, who sell the

remaining 42%39.

Figure 9 Distribution of the electricity production by type of producer in 2012

(Source: calculated from ONEE, 2013b)

With the introduction of Law 13-09, renewable electricity generators are allowed to sell directly to

consumers40 for a negotiated price, or export abroad, while consumers have the freedom to choose

for their electricity provider amongst these renewable energy producers. To regulate the new

developments in the electricity market, the National Regulatory Authority for Energy (ANRE) will be

established in 2014 as an independent regulatory authority41. ANRE will be responsible for monitoring

the market, defining rules to govern the electricity sector, solving disputes between the transmission

system operator and users, and developing tariffs for use of the transmission system42.

38 Jorf Lasfar Energy Company, coal, 38.5% of the national production;, Energie Electrique de Tahaddart, natural gas, 10.7% of the national

production; Compagnie Eolienne du Détroit, wind, 0.5% of the national production. 39 ONE (2011) 40 Medium voltage, high voltage and very high voltage 41 MEMEE, Department for Energy and Mining (2013) 42 MEMEE (2011)


41

National and international MBI experience. Out of the 1,000 MW included in the 1st stage of the

Moroccan Wind Energy Programme, six wind farms, with a total capacity of 804 MW, have been

successfully registered with the UNFCCC, as CDM projects and in one case as a PoA. The first 160 MW

site of the Moroccan Solar Energy Programme also benefits from carbon finance and was submitted by

MASEN and successfully registered with the UNFCCC at the end of 2012. Due to uncertainty in the

CDM market, Morocco has proposed NAMAs as an alternative financing source for the next phases of

the wind and solar programmes. More details on the CDM projects and NAMAs can be found in Table

8. At the international level, CDM projects relating to renewable electricity generation represent the

lion’s share of registered projects (70%)43. This experience at both the national and international level

shows that a crediting system is a good way to promote investment in low carbon technologies in the

electricity generation field. The Moroccan electricity sector is organized around ONEE but an

increasing number of operators are entering the production market. The development of a crediting

mechanism for the sector, as opposed to the project approach applied under the CDM, should allow

the integration of the other operators in the mechanism.

MRV experience. ONEE collects activity data for its own electricity power plants as well as for private

plants that sell electricity to ONEE, with this being integrated into their core business activities (see

section 3.1.2 for more details). Although the contribution of self-generators to national production is

actually quite low, their inclusion in a crediting mechanism would require consideration of procedures

for data collection (currently they are only required to disclose to ONEE the electricity they export to

the network) and double counting (self-generators often also belong to another sector, for example

cement).

Other initiatives covering the sector. The electricity generation sector is involved in another

mitigation programme, namely FIRM (see Table 2). Overlap and synergies with these programmes

will also be addressed during preparation and design of an MBI for the sector.

Lessons applicable to other sectors. The MRP focuses on the electricity production sector. Due to

its involvement not only in the supply-side but also in the demand-side, ONEE will be able to transmit

its experience of MBIs relating to electricity generation to other activities relating to demand-side

management. Other industries, such as the cement industry, are also involved in electricity

generation projects and can share their experience.

2.2.2 Cement production

General context. The cement sector is a key sector in Morocco with increasing importance. It

employs 2,600 workers44 and contributed 1.2% of GDP in 2003 and 2.4% in 201245. Total turnover in

201246 was approximately USD 1.8 billion and cement production was 15.9 Mt. Morocco has 12

cement plants and 3 mills, which belong to 4 international companies and 1 national player as shown

in Figure 15.

43 UNEP Risoe, CDM Pipeline, 1 December 2013. 44 APC (2013b) 45 APC (2013a) 46 APC (2013a)


42

Figure 10 Overview of cement plants and mills and expansion projects in Morocco (Source: APC)

Total production capacity is 21 Mt and a 6.5 Mt capacity extension is planned for 2017 with a total

investment cost in the order of USD 1.2 billion. This capacity increase will be divided into three

extensions to existing installations, and three new plants. This will help address the evolution of the

cement market in Morocco. Based on the estimation of the Morocco’s Professional Association of

Cement Producers (Association professionnelle des cimentiers – APC), the market should experience

an average growth rate of 4% over the coming years and the consumption level should reach about

20 Mt in 2020. Consumption will continue to grow before stabilizing at about 25 Mt, corresponding to

market maturity by 2027. In 2012, the production of 15.9 Mt of cement has led to the emission of 9.5

MtCO2e, distributed between energy processes (60%) and consumption (40%). With the new planned

capacity and an annual production rate estimated at 4%47 to meet the national demand, absolute

emissions of CO2 and energy consumption should continue to increase (see Figure 11).

47 Estimation provided by APC, July 2013

CEMENT PLANT MILL


43

Figure 11 Evolution of total emissions from the cement sector in Morocco (Source: APC projections based on a market

growth rate of 4%)

Table 6 Distribution of emissions from the cement sector in Morocco (source: APC)

Sources of CO2 emissions Distribution of emissions from the cement

sector in 2012

Processes (decarbonation of raw material) 60%

Energy consumption (fuel and electricity) 40%

Total emissions 9,5 MtCO2

Mitigation actions and potential. Since 1994, the environmental protection policy of cement

producers in Morocco has scaled up. It targets the volume of investments dedicated to efforts against

pollution, preservation of resources, and energy control. This dynamic was reflected in the signing of

a partnership agreement with the MdE, the first of its kind in Morocco, with the objective of

environmentally upgrading the cement sector. The sectoral commitment has led to the

implementation of actions to reduce energy consumption and energy costs. Such measures also

reduce the emissions of CO2 and dissociate the growth of the sector from the increase of such

emissions. Between 1997 and 2012, the Moroccan cement sector reduced its thermal energy

consumption by 15% and its electricity consumption by 26%. More importantly, the sector has

reduced CO2 emissions per tonne of cement by 16% between 2000 and 2012 to 600 kg CO2/t of

cement (see Figure 12)48. Other improvements of environmental indicators include a reduction of

water consumption by 60% and a reduction of 41-70% of air pollution for the period 2003-2012.

48 SBA (2012)


44

Figure 12 Evolution of specific emissions

from the cement sector in Morocco (tCO2/t

cement) (Source: APC)

Mitigation by cement producers in Morocco mainly consists in installing wind farms on their premises

and co-processing industrial waste. The development of these projects is supported by Law 13-09

regarding renewable energy and Law 28-00 regarding waste management. Other projects on

alternative raw materials and fuel are considered. More recently, cement producers have started to

look into cogeneration. One cement producer has installed 3 MW of cogeneration and is exploring

options to install a further 3-4 MW by 2020. The mitigation potential related to wind power potential

in the sector is estimated at 400 ktCO2 in 2015. The latest developments on utilising this mitigation

potential include49:

Lafarge has expanded its wind power capacity from 10 to 32 MW and signed an agreement

with Nareva (private energy producer) for the consumption of wind power produced from a

100MW wind park;

Ciments du Maroc has completed the construction of a 5MW wind farm and is looking to

extend it up to 10MW, or even possibly 50MW. It is also planning to construct another 10MW

wind farm.

National and international MBI experience. Lafarge’s existing 10 MW of wind power capacity was

the first registered CDM project in Morocco. In December 2012, Lafarge also succeeded in listing the

extension of the wind farm to 32 MW as a CDM project, and has been the only player in the Moroccan

cement sector to benefit from CDM. At the international level, around 150 CDM projects have been

registered in cement plants in developing countries, out of which 80% are waste heat recovery

projects50. It should be noted that some prominent industry players, such as the Cement

Sustainability Initiative (CSI) of the World Business Council for Sustainable Development (WBCSD),

have supported the development of MBIs in the cement sector for several years51.

MRV experience. Many international cement corporations are involved in monitoring and reporting

their emissions through centralised programmes for corporate social responsibility purposes or

through global initiatives. In Morocco, four cement groups out of five participate in CSI. As part of

CSI, the companies must monitor and report their emissions and energy consumption according to

49 APC (2013a) 50 UNEP Risoe Centre, CDM Pipeline, 1 December 2013 51 CSI (no date) Sectoral Market Mechanisms, available online: http://www.wbcsdcement.org/index.php/key-issues/climate-

protection/sectoral-market-mechanisms#1

http://www.wbcsdcement.org/index.php/key-issues/climate-protection/sectoral-market-mechanisms#1

http://www.wbcsdcement.org/index.php/key-issues/climate-protection/sectoral-market-mechanisms#1


45

the Cement CO2 and Energy Protocol. The cement companies involved in CSI therefore have MRV

systems based on a harmonised and well-established protocol (see section 3.1.2 for more details).

Morocco was added this year to CSI’s ‘Getting the Numbers Right’ database, which presents energy

and emissions indicators for the sector52 and gives a good insight into the sector’s performance. For

Morocco the GNR carbon intensity data is broadly similar to the data provided by APC presented in

Figure 12.

Concentration of actors and focal points. All Moroccan cement groups are members of APC. This

organisation represents the cement industry in Morocco and collects relevant data from its members

on GHG emissions and energy use (see section 3.1.2 for more details). Also, most cement plants

participate in CSI, which provides a basis for a common framework on GHG emissions.

Other initiatives covering the sector. No other initiative or mitigation policy is in effect or planned

in the cement sector.

Lessons learned applicable to other sectors. The cement sector has some experience in MRV that

should be shared with other sectors. In addition, activities for carbon market preparation in the

cement sector may involve and impact upon other related sectors, such as construction, waste

management or even transport, thereby transferring lessons learned to these sectors.

2.2.3 Phosphates extraction and processing

General context & Concentration of actors and focal points. The phosphates sector is a very

important sector in Morocco. In 2011 it represented 28% of the national export value of goods.

Morocco is the largest exporter of phosphates in the world with 30% of the phosphates export, mainly

in phosphate rock and phosphoric acid. Morocco’s exports of solid fertilisers are also growing. The

National Phosphates Company (Office Chérifien des Phosphates - OCP) is solely in charge of

production and sales of phosphates and derivatives in Morocco. Its turnover grew from around USD

6.8 billion in 2011 to more than USD 7.2 billion in 201253, equivalent to 7.2% of GDP.

OCP employs almost 20,000 people and has launched a programme to recruit a further 5,800

employees.

In Morocco there are four phosphate mining sites, two chemical processing facilities and four ports

dedicated to the sector, all owned by OCP (see Figure 13).

52WBCSD (2013) 53 OCP (2012a)


46

Figure 13 Mining sites, chemical processing facilities and phosphates-dedicated ports in the phosphates sector in

Morocco (Source: OCP)

In 2011, production was 28.1 Mt of phosphate rock, 4.4 Mt of phosphoric acid and 4.35 Mt of

fertilizer54 (see Figure 14 for an overview of the production chain). The total associated CO2 emissions

were 3.02 MtCO2e, which includes all CO2 emissions from mining, chemical processing, and transport

between production facilities and then to ports for export (see Table 7). As this sector becomes more

sophisticated, the sector is moving from exporting phosphate rock to phosphate derivatives with a

higher value, such as fertilisers. This change is driven by rising food prices as well as an increase in

demand for fertilisers.

Figure 14 Production process in the phosphates sector (Source: from OCP 2013b)

54 OCP (2012b)

HQ Ports

Chemical processing

facilities Mining sites

Main sites in Morocco

• Drilling

• Blasting

• Excavation

Extraction of

phosphate rock

• Trucks

• Train

• Conveyor

belts

Transport

• Crushing

• Washing

• Flotation

• Drying

• Calcination

• Dry enrichment

Processing

• Crushing

• Acid attack

Production of

phosphoric acid

• Drying

• Coating

Production

of

fertilizers

Sale/export of

phosphate rock

Sale/export of

phosphoric acid

Sale/export

of fertilizers


47

Table 7 Distribution of emissions from the phosphates sector in Morocco

Sources of CO2 emissions Distribution of emissions from the phosphates

sector (OCP) in 2012

Phosphate processing (calcination and acid attack) +

fuel consumption 75%

Consumption of grid electricity 18%

Transport of products and employees (business trips) 7%

Total emissions 3.02 MtCO2

To meet the growing demand, OCP is expanding fertilizer production capacity by adding four new

facilities with a capacity of 4 Mt to the Jorf Lasfar site. Other capacity extensions include three new

mines at the Khouribga site capable of producing 38Mt of phosphate rock by 2020 compared to 18Mt

today, and an extension to the Jorf Lasfar port to handle a doubling of phosphates extraction and a

tripling of fertilizer extraction by 2020. These expansions of production will also result in an increase

in GHG emissions and environmental impact.

Mitigation potential. The phosphates sector is highly engaged in limiting its GHG emissions and the

OCP has a carbon strategy that includes the implementation of various GHG reduction projects. The

two main projects currently underway are the construction of a slurry pipeline and the implementation

of heat recovery systems in sulphuric units:

The slurry pipeline project between Khouribga and the chemical facilities of Jorf Lasfar has

recently been completed and reduces GHG emissions by around 900 ktCO2 /year, equivalent

to almost a third of the phosphate sector’s GHG emissions in 2011. Other environmental

benefits include a decrease in water consumption in line with OCP’s water management

strategy55.

OCP is planning to install heat recovery systems (HRS) in sulphuric units in Safi and Jorf

Lasfar, which will amount to a reduction of around 90 ktCO2 /year per unit and simultaneously

reduce energy consumption56.

OCP is also carrying out an evaluation of mitigation options and potential, to serve as a base for

the definition of a mitigation action plan and emissions reductions objectives by 2020.

National and international experience with MBIs. The OCP attempted to register the heat

recovery and slurry pipeline measures as CDM projects, but these were rejected due to a lack of

financial additionality. The OCP has had to face this issue for all of its CDM applications since 2003.

The projects proposed by OCP are related to energy efficiency, and these projects have often faced

difficulties within the CDM as they are financially attractive but instead often not implemented due to

non-financial barriers, which are generally harder to demonstrate than financial additionality. As the

OCP has already implemented GHG reduction projects and has several more initiatives in the pipeline,

both rewards for early action and project additionality should be taken into consideration when setting

55 OCP (2012c) 56 OCP (2013a)


48

targets/baselines for the phosphate sector in the MRP implementation phase. At the international

level, lessons can be learned from some CDM project types relevant to the phosphate sector, such as

waste heat recovery.

MRV experience. As part of its carbon strategy, OCP set up an internal carbon footprint system in

2007. Data is collected from all industrial sites and CO2 emissions were calculated annually until 2013,

and then on a monthly basis since May 2013. This allows the OCP to have an excellent insight into

their emissions all along the sector’s value chain and to identify any data gaps. The OCP has set up a

sustainable development reporting software, which includes the carbon footprint. The OCP is currently

preparing to contribute to the Global Reporting Initiative (GRI) and to harmonise its carbon footprint

calculation system with that of the GRI. From this year, the system for quantifying GHG emissions is

under verification under ISO14064 standard by a certifying body.

Other initiatives covering the sector. No other initiative or mitigation policy is in effect or planned

in the phosphates sector.

Lessons learned applicable to other sectors. Carbon market preparation activities in the

phosphates sector may involve and impact on other related sectors, such as transport, thereby

facilitating the transfer of lessons learned. OCP has a significant experience in identifying and

implementing mitigation measures, as well as thorough knowledge of emissions and MRV

arrangements. This experience would be useful to drive the preparation of Morocco for the

development of MBIs.

As this section demonstrates, the sectors of electricity generation, cement production and phosphates

extraction and processing are each well suited to an MBI pilot scheme and are therefore included in

Morocco’s first request for the first PMR grant.


49

Table 8 Registered CDM projects and PoAs in Morocco in the three sectors covered by the MRP

Status Title Promoter Sector MW Expected annual reductions (tCO2)

CERs issued

Registered

23/09/05

Tétouan Wind Farm Project for Lafarge

Cement Plant Lafarge


(wind)/cement 10.2 28,651 171,380

Registered

29/10/05 Essaouira wind power project ONEE Electricity generation (wind) 60 156,026 244,411

Registered

28/04/06

Photovoltaic kits to light up rural

households in Morocco ONEE

Electricity generation (solar

PV) 7.7 38,636

057

Registered

07/06/11 Tanger wind power project ONEE Electricity generation (wind) 140.3 334,073 0

Registered

25/08/11 Haouma Wind Farm Project NAREVA Holding Electricity generation (wind) 50 134,496 0

Registered

30/09/11 Akhfennir Wind Farm Project NAREVA Holding Electricity generation (wind) 200.4 264,789 0

Registered

29/10/12

Programme for Grid Connected Renewable

Energy in the Mediterranean Region

CDC Climat Asset

Management

1st activity: Solerine

Participations


1st activity: solar PV

1st activity in

Morocco:25

1st activity:

20,833 0

Registered

08/12/12

Wind farm extension project for Lafarge’s

cement plant in Tétouan Lafarge


(wind)/cement 22 49,848 0

Registered

21/12/12

Ouarzazate I Concentrated Solar Power

Project Masen

Electricity generation (solar

CSP) 160 278,695 0

Registered

27/12/12

Jbel Sendouq-Khalladi (Khalladi) wind farm

project in Morocco UPC Renewables SARL Electricity generation (wind) 120 143,960 0

Registered

31/12/12

ONE Wind Programme of Activity, Morocco

1st activity: Tarfaya Wind Farm Project ONEE Electricity generation (wind)

1st

activity:300

1st activity:

653,608 0

Validation

terminated Foum El Oued Wind Farm Project - Morocco NAREVA Holding Electricity generation (wind) 101.2 264,180 0

57Issues with the implementation of the project, not linked to CDM


50

Source: UNEP Risoe Centre, CDM Pipeline, 1 December 2013


51

2.2.4 Energy efficiency in commercial buildings

General context. The buildings sector is an important sector in the New National Energy Strategy to

reduce energy dependency58. It includes both commercial buildings and residential buildings. With so

many different stakeholders the residential buildings sector is highly complex and therefore, the scope

of this MRP analysis is limited to the tertiary or commercial buildings sector. This sector can be

divided into public and private buildings, the latter including about 2,800 buildings in 201159. These

include hospitals, schools, office buildings, shops, hotels, restaurants, hammams and traditional

ovens.

Energy consumption in the tertiary sector was 529 ktoe in 2011, equivalent to 4% of total national

energy consumption60. Despite having a relatively small share of energy consumption, the tertiary

buildings sector has the highest historical growth of all sectors, with an average annual growth rate of

6.4% between 2004 and 2011. Energy intensity increased by 1.3% in 2011, indicating that energy

consumption was higher than the GDP growth. This was caused by several factors such as structural

changes in the tertiary buildings sector and changes in way of life. The majority of energy

consumption in the sector came from electricity and biomass with a 46% and 47% share

respectively61. Propane represents the remaining 7%. Since biomass can be considered as a zero

emissions source and electricity is still largely generated by fossil fuels as detailed in section 2.2.1,

the main driver of GHG emissions in the sector is therefore electricity, albeit indirect emissions. The

most significant emissions reductions in the tertiary buildings sector can thus be achieved through

reduction of electricity consumption by implementing energy efficiency measures. This is in line with

the national energy efficiency target of 12% by 2020 and 15% by 2030 set in the National

Programme on Energy Efficiency62. For the buildings sector, the programme includes the introduction

and use of building codes, compact fluorescent lightbulbs (CFLs), double glazing, insulation materials

and solar thermal heating.

Mitigation potential & Other initiatives within the sector. The energy efficiency measure in the

buildings sector should lead to a reduction of about 2 MtCO2e/year by 2030 with an investment of

USD 838 million63. A large share of the identified mitigation potential will only be relevant to the

residential buildings sector, so the estimated mitigation potential for the tertiary sector is therefore

less than this. As part of the National Programme on Energy Efficiency, several programmes in the

tertiary sector have been or are being implemented:

The National Programme on Energy Efficiency in Buildings piloted by the National Agency for

the Development of Renewable Energy and Energy Efficiency (Agence de Développement des

Energies Renouvelables et de l’Efficacité Energétique - ADEREE) in partnership with the

French Global Environment Fund (FFEM), UNDP and GIZ64. The programme includes, among

other things, the implementation of an energy efficiency building code through two

components: thermal building regulations and the labelling of electrical appliances. The

programme is estimated to result in 1.2 Mtoe/year energy savings by 2020 and a total GHG

emissions reduction of 4.5 MtCO2 in the whole buildings sector.

58 MEMEE (2013b) 59 MEF (2013) 60 MEMEE (2013a) 61 ADEREE (2013a) 62 MEMEE (2013b) 63 Kingdom of Morocco (2012) 64 ADEREE (2011)


52

The CFL programme, which aims to replace 22.7 million incandescent lightbulbs with CFLs by

2012. The programme is implemented by ONEE and supported by ADEREE. As part of this

programme ONEE started the INARA programme, which aims to replace 15 million

incandescent lamps with CFLs65. The INARA programme consists of three phases, and the first

phase was completed in 2010 and included 5 million lamps. The second and third phases

include 10 million lamps and will be financed through a loan from the German development

bank (KfW) and are supported by the United Nations Development Program (UNDP) /Global

Environmental Facility (GEF) project Market transformation for Energy Efficiency66.

The Solar Pump Programme which aims to install 2,000 solar pumps per year. The agreement

was signed at the International Exhibition of Agriculture 2013 in Morocco. The Programme is

funded by the GEF.

The Shemsi Programme which aims to install 1.7 million m2 of solar water heaters (SWH) by

2020 compared to 350,000 m2 in 201167. To achieve this, Shemsi includes certification and

labelling of SWHs, technical skills training, an innovative funding model, awareness raising

and integration of SWHs into building planning codes.

ADEREE is currently seeking support for the development of three NAMAs, one for the National

Programme on Energy Efficiency in buildings, the second for the solar pump program for irrigation

and a third one for a program of photovoltaic solar kits connected to the LV/MV grid. The NAMA on

the National Programme on Energy Efficiency in buildings would include technical support and

capacity building activities. Morocco is also developing a NAMA to support construction of a new town

(NAMA City), near Casablanca, which will be relevant to both residential and tertiary buildings.

For the implementation of the various energy efficiency programmes, good data management is

required. However, the tertiary buildings sector is a diffuse sector and the majority of buildings are

managed separately and independently. Data availability and its quality depend on individual building

managers, since there is no centralised data system in place in the tertiary buildings sector. According

to ADEREE, data availability has always been a large barrier in energy efficiency programmes within

the sector. To set up a database on energy efficiency indicators and to improve data availability,

ADEREE launched a project under the Mediterranean Association of the National Agencies for Energy

Conservation (MEDENER) that resulted in the development and documentation of a database of

energy efficiency indicators, supported by the internationally recognised Odyssée database and the

European Union ODEX indicators. ADEREE also piloted the roundtable talks on energy efficiency, a

large consultation process with stakeholders to map energy efficiency potentials, to enhance

capacities, to prepare a national energy efficiency strategy in Morocco by 203068 and the associated

action plans in the short, medium, and long terms69. The discussion workshops sessions include

preparation of the status of energy consumption for Morocco and the quantification of potential

energy savings and the international benchmark of 5 developed and developing countries.

Concentration of actors and MRV experience. Law no. 47-09 on Energy Efficiency (Law 47-09)

provides the regulatory framework for energy efficiency in the buildings sector. Law 47-09 sets the

legal framework for the implementation of the National Programme on Energy Efficiency for the

transport, buildings and industrial sectors. It includes provisions for the implementation of energy

efficiency measures or programmes in the buildings sector such as the National Energy Efficiency

65 ONEE (2013) 66 GEF (2011) 67 ADEREE (2013b) 68 ADEREE (2013c) 69 ADEREE (2013c)


53

Programme in Buildings. The Programme sits within the framework of Law No 1609, and is

implemented by ADEREE. ADEREE has a longstanding involvement in the implementation of energy

efficiency and renewable energy in various sectors, including the buildings sector. Another key

organization in the buildings sector is the Al Omrane Group. Al Omrane is a public organization under

the supervision of the Ministry of Housing and Urban Policy and is involved in the development of low-

carbon cities, including the implementation of energy efficiency measures in their projects. Al Omrane

is also the project developer for NAMA City.

The buildings sector is dispersed and consists of many actors, in both the residential buildings and

tertiary buildings sectors. Even within just the tertiary buildings sector, the sector remains highly

fragmented and most buildings are managed separately and/or independently. The largest mitigation

potential in the tertiary buildings sector can be achieved through reductions in electricity

consumption. However, due to a lack of available data, it is difficult to determine the energy savings

and GHG emissions reductions achieved. In order to improve data availability, ADEREE has started

building capacity and raising awareness through the organisation of training seminars and workshops,

supported by several international initiatives.

National and international MBI experience. The Moroccan tertiary buildings sector has not had

any experience with the CDM or any other MBI. Although it has had some international experience

regarding MBIs relating to energy efficiency, in the shape of energy savings/white certificates, GHG

emissions reductions and energy savings within the sector are generally addressed through non

market-based instruments. For these reasons, the tertiary sector is not covered in this MRP. However,

it should still benefit indirectly from the experience gained during this first phase, and can be

considered as a sector with potential for MBI development at a later stage.

2.2.5 Transport

General context. The transport sector is the largest energy consumer in Morocco70. In 2011 the

consumption in the transport sector was 5,455 ktoe71, equivalent to 32% of national energy

consumption. Energy consumption has grown at an average annual growth rate of 5.9% between

2004 and 2011. Simultaneously final energy intensity has also continuously increased by an average

of 1.42% per year to 7.97 toe /million dirhams in 2011 as energy consumption in the transport sector

grew even faster than the GDP. The growth in emissions is almost directly correlated to the growth in

energy consumption, as 99.5% of the energy consumption in the transport sector comes from fossil

fuels72. In 2004, the emissions from the transport sector were 6.6 MtCO2, covering 9% of the total

GHG emissions73.

The largest contributor of CO2 emissions in the transport sector is by far road transport, accounting

for about 88% of the total transport GHG emissions. Activity in road transport grew by 58% between

2004 and 2011 to 83.6 million vehicle-kilometres/day74 and the number of road vehicles grew by

51%. The second largest contributor of CO2 emissions in transport is aviation with 11% of transport

GHG emissions. Passenger travel by air transport doubled between 2004 and 2011 to 15.1 million

passengers, whereas freight transport remained roughly the same. The trend is similar for rail

70 MEMEE (2013a) 71 SIS Consultants (2012) 72 SIS Consultants (2012) 73 SEEE (2009b) 74 MET (2013)


54

transport, although the share in CO2 emissions is about 1%75. For shipping the trend is reversed as

the growth mostly takes place in freight transport, while passenger transport remained stable. These

indicators show that the transport sector has been growing strongly in the past few years and is

expected to grow further in the future, together with an accompanied growth in energy consumption

and associated emissions76. Improving energy efficiency in the transport sector is therefore key to the

New National Energy Strategy (Stratégie Nationale de l'Energie) to reduce Morocco’s energy

dependence and reduce GHG emissions, and will therefore lead to the additional benefit of a reduction

in air pollution.

Mitigation potential. The New National Energy Strategy sets a national energy efficiency target of

12% by 2020 and 15% by 2030, of which 23% should be accomplished in the transport sector. The

Ministry of Equipment, Transport and Logistics has also implemented the National Strategy for the

Development of Logistics Competitiveness (Stratégie nationale pour le développement de la

compétitivité logistique), with a CO2 reduction target relating to goods transport of 35% by 2020 in

terms of tCO2 /km77. For the implementation of the strategy the Moroccan Agency for Development of

Competitive Logistics (Agence Marocaine de Développement de la Compétitivité Logistique – AMDL)

was established. The mitigation potential of the transport sector is evaluated at 1.8 MtCO2 /year by

2030 for an investment of USD 5.7 billion78, which is a relatively small abatement compared to the

necessary investment. Mitigation options identified include:

Facilitation of modal shifts by expanding electric transport such as the introduction of trams or

metros in Rabat and Casablanca and a high-speed railway between Casablanca and Tanger;

Development of wind farms. Plans include 50 MW by the National Railway office (Office

National des Chemins de Fer) and 10-30 MW by the National Airport Office (Office National

des Aéroports) to meet part of the electricity need of the Casablanca airport;

Promotion of the replacement of old vehicles by more efficient new vehicles and

manufacturing of more efficient vehicles through financial incentives, labelling and emission

standards, and

Training and awareness to change towards more eco-friendly driving behaviour.

Concentration of actors & National and international MBI experience. For many mitigation

options the investor and the recipient of the benefits of the investment are different, and the

perceived investment benefits are also different. It is also difficult to estimate expected emissions

reductions as this will depend on the scale of the adoption of the measure. For options such as

training and awareness it is not even possible to determine the direct emission reductions. The sector

also has no experience with market-based approaches, which is not surprising given that there is

limited international experience of transport-related MBIs to build upon.

MRV experience & Other initiatives. There is no form of MRV in the transport sector to monitor

emissions and validate emissions reductions. The transport sector is a dispersed sector with a lot of

actors, making data collection complex. Data collection is further complicated by the fact that a

considerable amount of road transport, including freight transport, operates in an informal way. As

such, robust emissions data for the transport sector is lacking. The Ministry of Equipment and

Transport is responsible for data collection within the transport sector, but lacks MRV capacity. To

75 MEMEE (2013a) 76 SEEE (2010) 77 MET (2008) 78 Kingdom of Morocco (2012)


55

build such capacity, several workshops supported by the Government of Japan were held for different

departments within the Moroccan government with input from Japanese experts. These workshops

included a simulated calculation of GHG emissions based on the CDM methodology AM0090, and

covered the use of reporting and verification templates. Following these workshops, it was decided to

develop a NAMA named ‘The modal shift of the flow of goods from road to rail in Morocco between the

axes of Casablanca-Fès and Nador-Jerada’. A lack of MRV capacity, among other issues, was also

experienced during the implementation of the AMDL, and therefore another NAMA on capacity

building is being prepared with the support of GEF and UNDP. The NAMA will focus on establishing a

GHG mitigation project model suitable at a national level, and the development of a GHG monitoring

system.

The largest barriers to overcome in the transport sector are the lack of data and capacity to establish

an MRV system, and the intrinsic complexity and heterogeneity of the sector due to the large number

and variety of actors. Mitigation options that have been identified so far are not suitable for MBIs as

there will be a mismatch between the recipient of the benefits and the investor. These issues are

applicable to the transport sector in general, not only in Morocco, which explains why GHG mitigation

in the transport sector is in general not addressed by MBIs, but with other policy instruments, and

why there is little international experience available. Several international non-market based

initiatives are underway to support emission reductions in the Moroccan transport sector. This MRP

will therefore not focus on the transport sector as an appropriate sector in this first stage of the PMR

process, and transport is considered an additional sector for potential MBI development at a later

stage.

2.2.6 Other sectors

The remaining emitting sectors of the Moroccan economy not yet discussed include waste, agriculture

and forestry, with a share in GHG emissions in 2004 of 5%, 5% and 31% respectively79.

Waste

General context. Emissions in the waste sector in Morocco can be divided into two categories: solid

waste and wastewater. Out of these categories, emissions from solid waste dominate by far with

around 85% of the total emissions in the waste sector in 2004. In the last decade Morocco

experienced a strong growth in its urban population, which has been accompanied by a significant

increase in waste. Solid waste in urban areas is estimated at 5 Mt/year with an average annual

growth rate of 2.5%80.

Mitigation potential. To address the environmental costs of waste management and to reduce the

GHG emissions in the waste sector, the government proposed a reform of the sector through an

integrated sustainable waste management programme. This included the implementation of the

National Solid Waste Programme (Programme National des Déchets Ménagers – PNDM) that started in

200781. The PNDM aims to support local authorities with the improvement of the collection, treatment

and disposal of waste. The PNDM has also been identified in the PNRC as the policy instrument with

79 SEEE (2009b) 80 World Bank (2011d) 81 World Bank (2011d)


56

the largest GHG mitigation potential in the waste sector82. Such measures should lead to a reduction

of emissions estimated at 3.8 MtCO2e/year by 2030 for an investment of about 1 billion dollars83.

In addition, the National Sanitation Plan implemented to process wastewater and develop several

treatment plants presents additional mitigation opportunities, in particular through capture, flaring,

and use of biogas. These measures should result in a reduction of emissions estimated at 0.336

MtCO2e/year by 2030 for an investment estimated at 50 million de dollars84.

MBI experience & Other initiatives. The financing strategy of the PNDM was to partly obtain

funding through the CDM. However, the development of individual CDM projects proved to be too

complex due to a lack of management capacity at a local level, limited financial resources to deal with

transaction costs, and the complex nature of the projects. To facilitate the development of CDM

projects, the Moroccan government established the Fonds d’Equipement Communal (Municipal

Equipment Fund, FEC) to support the financing of these projects. The FEC established a partnership

with the World Bank, which favoured a programmatic approach instead of individual projects to

improve efficiency and limit the costs for local authorities. This resulted in the successful registration

of the PoA Landfills’ biogas capture, flaring and use in December 201285. The PoA is covering all

municipal landfills in Morocco. To accelerate the implementation of the PoA by the local authorities the

Moroccan government has prepared a supported NAMA, which includes a request for funding for

capacity building and technical assistance.

Most emissions in the waste sector come from solid waste, and reduction of solid waste emissions is

covered by the PNDM. Two international mechanisms, the PoA in the waste sector, and the

accompanying supported NAMA, support the implementation of the PNDM and enable capacity

building relating to MBIs. As the PMR initiative is seeking to minimize duplication of efforts, the waste

sector is therefore not covered by the first PMR grant. As the waste sector PoA is a crediting

mechanism, it is important to consider it in the wider discussion on MBI strategies in Morocco.

Agriculture

General context. The agricultural sector is one of the most important sectors in Morocco,

contributing directly to 15% of the GDP and a further 4% through the food-processing industry86.

Approximately 45% of the population lives in rural areas87, and 80% of employment in these areas is

provided by the agricultural sector. In terms of GHG emissions the agricultural sector is also a large

emitter with almost a third of the national GHG emissions in 2004.

Mitigation potential. In 2008 the Moroccan government launched the Plan Maroc Vert (PMV)88,

whose objective is to increase agricultural revenues and food security in Morocco by modernising the

sector. The PMV also includes plans relating to water management, land use and, especially, reducing

the negative impact of agriculture on the environment. The emissions mitigation measures from the

sector should lead to a reduction of emissions estimated at 2 MtCO2e/year by 2030 for an investment

evaluated at 3 million dollars89.

82 SEEE (2009a) 83 Kingdom of Morocco (2012) 84 Kingdom of Morocco (2012) 85 UNFCCC (2012) 86 ADA (2013) 87 World Bank (2013) 88MEMEE (2013b) 89 Kingdom of Morocco (2012)


57

MBI experience. In the PNRC the Ministry of Agriculture and Maritime Fishing has identified several

GHG mitigation options, of which the largest is improving the efficiency of agricultural land. The

implementation of the identified options will face many barriers such as the lack of knowledge and

experience relating to GHG mitigation, lack of funds for investments, dispersion of the sector with

small farmers in remote rural areas, and difficulty to monitor emissions and emissions reductions.

This last reason is also one of the reasons why emissions in the agriculture sector are rarely tackled

through MBIs as international experiences show. In Morocco emissions come from enteric

fermentation, manure management, cropping systems (rice), agricultural soils and the burning of

savannahs and crop residues. The geographical spread of these emission sources and the lack of

capacity and methodologies for estimating the emissions make it very hard to monitor emissions in

the agriculture sector accurately enough for the implementation of an MBI. The agricultural sector is

therefore not a prime candidate for the piloting of an MBI in Morocco and it is not included in this

MRP.

Forestry

General context. Forests in Morocco cover approximately 9 million hectares of land, equivalent to

12.7% of the national territory of Morocco90. Since forests act as carbon sinks, net emissions in the

forestry sector come from deforestation, which is offset by afforestation and reforestation. In 2004

the net emissions from the forestry sector were positive due to the utilization of biomass, meaning

deforestation was larger than afforestation and reforestation. Net forestry emissions accounted for

5% of the total emissions.

Mitigation potential. In order to tackle deforestation in Morocco, the High Commission for Water

and Forests and the Fight against Desertification (Haut-Commissariat aux Eaux et Forêts et Lutte

contre la Désertification - HCEF-LCD) implemented the National Reforestation Plan (Plan National de

Reboisement - PNR), which since 1970 has focused on the protection, conservation and development

of forest91. In 1994 the PNR was extended through the launch of the Reforestation Plan (Plan de

Reboisement - PDR) to scale up afforestation and reforestation (A/R). The PDR sets out a new

management approach to increase the A/R rate. However, the resulting increased rate is still

insufficient to reverse the degradation of the forestry sector due to the growing human impact and

degrading fertility of the soil. The PDR has therefore set a target of reaching an A/R rate of 50,000

ha/year by 2013, leading to a total A/R of 1 million ha by 2030. The mitigation measures of the sector

should lead to a reduction of emissions estimated at 0.374 MtCO2e/year by 2030 for an investment

evaluated at 450 million de dollars92.

MBI experience & Other initiatives. The PDR has also been identified as the policy instrument with

the largest GHG mitigation potential in the forestry sector in the PNRC. The target set in the PDR

forms a crucial part of the GHG mitigation strategy within the sector. To reach the target, significant

financing is required. Morocco is currently exploring the UN REDD+ programme in cooperation with

GIZ93. REDD+ stands for Reducing Emissions from Deforestation and Forest Degradation (REDD),

including conservation, sustainable management of forests and enhancement of forest carbon stocks.

A feature of REDD+ is a carbon market component, and although the exact modalities of the carbon

90 HCEFLCD (2013a) 91 HCEFLCD (2013b) 92 Kingdom of Morocco (2012) 93 GIZ (2012)


58

market component of REDD+ are still being discussed, REDD+ is a specific MBI for the forestry

sector, which could be used to incentivize emission reductions in the Moroccan forestry sector. As

such it is not recommended to develop a separate crediting mechanism at this stage, and the forestry

sector is not included in this MRP.

2.3 Summary of the MRP’s proposed activities

The activities proposed in this Building Block will be associated with the definition of the national

strategy for the implementation of MBIs in Morocco. They are summarised in the table below.

Table 9 Summary of Building Block 2 activities

# Activity Tranche of activities

1 Analysis of appropriate mitigation instruments and MBI governance for Morocco First

2 Mid-term review First


59

3 Core technical, institutional and regulatory

market readiness components

This Building Block explores the status of different core components in the preparation of a Moroccan

carbon market (data management and MRV systems, targets/objectives, a registry, and a suitable

institutional and regulatory framework) and proposes activities that will facilitate the establishment of

these key elements. These activities will lay the necessary foundation for the operationalization of

MBIs discussed in Building Block 4.

3.1 Data management and MRV

3.1.1 Current situation (institutional level)

Several different types of data need to be considered as part of national mitigation efforts including:

Data monitored and reported by installations through an MRV system in an MBI or other

mitigation initiative (emissions data, baselines and information on the monitoring systems put

in place in each installation, etc.);

The carbon units (e.g. carbon credits) belonging to a relevant MBI;

Inventory data;

Data for use in biennial GHG emissions reports, and

Data originating from other policy instruments, for example activities implemented under the

NAMA framework.

The Moroccan government needs an institutional framework and a technological tool to effectively

manage and use different pieces of data. The current situation relating to data management is

summarized in Table 10.

Table 10 Current institutional framework relating to data management

Data Actors Description

Data monitored and

reported by installations as

part of an MBI MRV system

Participating CDM

installations

The only emissions MRV systems in Morocco are

those put in place at the installation level by

facilities participating in the CDM. Data are

reported to the UNFCCC. The government is not

involved in these MRV activities.

Carbon units Participating CDM

installations

Credits are allocated by the UNFCCC directly to

participating CDM installations. The government

is not involved.

National inventory data

Relevant government

departments, coordinated

by the MdE through an

interdepartmental

committee

The inventory uses officially published statistics

and data collected for the High Commission for

Planning (HCP). Specific data items are collected

from sector associations and departments. This

process is not systemized.


60

Data Actors Description

Data for Biennial Update

Reports (BURs) N/A (the first BUR will be

produced in the TNC

currently due for publication

in 2014)

N/A (first BUR will be prepared in 2014) Data originating from other

policy instruments, such as

activities implemented

under the NAMA framework

Communication of data

sources mentioned above N/A

There is currently no institutional framework or

system in place that sets out MRV and data

management procedures.

Currently Morocco does not have a formal framework (e.g. regulations, procedures, or tools) relating

to MRV and emissions data management at the institutional level. This is illustrated by the variety of

approaches and actors presented in the table above. The project 4C, supported by the German

cooperation, considers the development of an IT system and long-term inventory in Morocco. This

system could be used in particular for national inventories and BURs. It is important that a

coordinated approach is taken on the management of different pieces of emissions data in Morocco,

including those that will be generated by the implementation of an MBI. It is necessary to determine

what type of management system to put in place, the type of data that it will capture and in which

format, who will be responsible, etc. Exploration of these issues should be accompanied by

stakeholder engagement, training and pilot schemes in each of the three sectors included in the MRP.

The PMR project aims to maximize synergies with the 4C project in this area.

3.1.2 Current situation (sectoral level)

In addition to a regulatory MRV framework, operational MRV requirements in installations

participating in the MBI must also be defined.

Table 11 summarizes the current MRV and data management situation in the three sectors covered by

the MRP. Two types of data are evaluated (activity data and emissions data) according to two

different time dimensions (historic and projected). Both historical and projected data will be useful in

defining MBI baselines. Current data will be important in determining the emissions reduction

achieved.


61

Table 11 MRV and data management in the three sectors covered by the MRP

Data Main data available Monitoring Reporting Verification

Electricity

Activity

data

For each installation (power plant):

fuel consumption, electricity

generation, export to the grid.

Aggregated historic data are public

(annual reports).

Projections: occasionally made at

the sector level by MEMEE based on

data provided by ONEE.

Activity data: monitored as part of

core business activities. Specifications

for data collection and communication

set out by ONEE. Consistent

monitoring methods across all

installations, as all electricity

generated is transmitted via the ONEE

grid.

Use of real time meters combined

with a DOS system for all plants

except for some small hydropower

plants.

Data supplied to ONEE daily by

facilities via telephone and monthly

meter readings.

Data then transmitted from ONEE

to MEMEE by the department in

charge of systems and operations

management.

Installations send a handwritten

report to ONEE’s department in

charge of systems and operations

management. The Dispatch office

also prepares a report. An Office of

Statistics compares the data.

Emissions

data

In the SNC: emissions only available

at an aggregated sectoral level. Data

used: officially published statistics

and data collected from the

Department of Statistics. Missing

data collected from other

departments and sector

associations.

Last national inventory submitted to

the UNFCCC: 2000. Last national

inventory presented in the SNC:

2004.

Historic emissions from plants

connected to the electricity grid are

also calculated in CDM projects.

Data for multiple years available.

No formal methodology for monitoring

emissions at the national level. 2004

inventory: no monitoring. Calculations

done by an external consultant, based

on revised 1996 IPCC national GHG

inventory guidelines.

CDM projects: emissions only

monitored for the renewable energy

CDM projects owned by ONEE,

NAREVA, Masen and Lafarge. Applied

CDM methodologies: ACM0002 and

AMS-I.D.

ONEE: emissions estimated by using

generation data and emissions factors

(Excel spreadsheet).

No formal reporting methodology or

requirements at the national level.

Emissions only reported by ONEE,

NAREVA, Masen and Lafarge as part

of renewable energy CDM projects.

CDM methodologies used are

ACM0002 and AMS-I.D.

Reporting format: monitoring

reporting template provided by

UNFCCC.

Frequency: chosen by participants.

No formal verification methodology

or verification requirements at

either the sectoral or national level.

CDM Project emissions are verified

according to CDM requirements.

Verification is undertaken by

independent auditors accredited

under the CDM (known as

Designated Operational Entities) in

accordance with the verification

manual published by the CDM

Executive Board.


62


Cement

Activity

data

Activity data monitored as part of

core business activities.

Historic data: available.

Projections: performed occasionally,

based on the judgment of cement

plants and their planned capacity

extensions.

No formal monitoring requirement or

methodology at the national level.

Activity data measured by

installations as part of their core

business activities. CSI requirements

set out the data items to be

monitored.

No formal reporting requirement or


Activity data at the installation level

is reported by all cement groups to

the APC, which aggregates data at

a sectoral level and publishes it in

its annual report.

Installations participating in the CSI

(4 cement groups out of 5) also

report activity data to their

headquarters. The headquarters

pass this data on to CSI.

No formal verification requirement

or methodology at the national

level. Quality control of data

provided to the APC is done by

members of the APC’s Environment

Commission (consisting of

representatives from 5 cement

groups).

Quality control of data submitted to

the CSI’s ‘Getting the Numbers

Right (GNR)’ database required by

an independent third party at least

every two years. The cement

groups are responsible for ensuring

this verification takes place.

Emissions

data

Carbon intensity in tCO2/t cement is

calculated by the APC on the basis of

activity data provided by cement

groups as well as emissions factors.

Historical data: available

Last updated: 2012.

Carbon intensity and total emissions

also calculated by cement groups

through participation in the CSI

(only available to the public as

aggregated sector level data).

Projections: not available.



Emissions monitored by participating

cement groups according the CSI

Cement CO2 and Energy Protocol.



Carbon intensity as calculated by

the APC is available in a publicly

accessible publication (e.g.

Environmental Performance June

2013).

Emissions are reported to the CSI

by participating cement groups

according to the CSI Cement CO2

and Energy Protocol.



level.

See above for quality control

relating to the CSI.


63


Phosphates

Activity

data

Activity data: data on fuel and

electricity consumption, and on

processing of exploitation products

and transport, collected by each

installation as part of the OCP

carbon footprint calculation.

Projections: not available.



Activity data: monitored as part of

core business activities, according to

an approach set out by the OCP.



Activity and emissions data:

reported annually between 2007

and 2012 and monthly since May

2013 as part of the OCP internal

carbon footprinting initiative.

A sustainable development

reporting software, including carbon

footprinting, is currently being

rolled out, as preparation for

integration with the Global

Reporting Initiative.



level.

Verification (of approach and

values) by an OCP authorised

carbon footprinting body according

to ISO standard ISO14064 since

2013.

Emissions

data

OCP emissions data available as part

of OCP carbon footprint (confidential

information).

Total annual emissions stated in the

public annual report.

The last update was in 2012. Data

for 2007 to 2012 are available

(except for 2008).



Total CO2 emissions (phosphates

processing by calcination and acid

attack, fuel consumption, electricity

consumption from grid, transport of

products and employees) monitored

by OCP in the course of core business

activities, following an approach set

out at the level of the organization

(carbon footprint) and under external

verification.



Total annual emissions value

reported in the public annual

report. Software solution under

development will include all

emissions data for the full

production chain of OCP.


or methodology available at the

national level.

Verification (of approach and

values) by an OCP authorized

carbon footprinting body according

to ISO standard ISO14064 since

2013.


64

3.1.3 MRP activities – Data management and MRV systems

Sections 3.1.1 and 3.1.2 show that the Moroccan government needs to define an institutional and

regulatory framework for MRV and data management as well as operational requirements for MRV

implementation. The three sectors covered in the MRP have a solid background in MRV and data

management that will help to shape these requirements. It will be important to assess these existing

practices in light of international requirements as well as best practice in terms of emissions MRV and

to use the national MRV pilot scheme to improve these practices.

The activities proposed in the MRV follow a step-by-step approach. The focus will be on:

First: data management, monitoring, reporting and piloting the system;

Second: verification and accreditation, design of computer platform, and expansion of the

pilot scheme to other sectors.

Activity 3 Design of a MRV system, and piloting of MR in the three sectors covered by the MRP

(electricity, cement and phosphates)


Activity objectives

This activity will design an institutional framework for the monitoring and reporting of

emissions, and its transposition into operational requirements for the monitoring and

reporting of emissions at the level of industrial installations. This activity will allow the

piloting of this framework in the three sectors covered by the MRP. Each of these

three sectors has extensive experience in the area of monitoring and reporting of

emissions. This activity will build on that experience. In addition, it is important to

apply an integrated approach to plan the verification process from the beginning. This

activity will also prepare the design of the verification and accreditation system.

Verification and accreditation processes are required to ensure the quality of

emissions reports and, as part of a crediting system, the quality of carbon credits.

This emissions verification and verifier accreditation system can be set up at the

national level or could follow international requirements, for example those set out by

the UNFCCC in regards to NMM. This activity will therefore focus on planning the

verification and accreditation system and its integration in international systems.

The type of MRV system will depend on the applied mitigation instrument. The focus

will be on developing a system that is appropriate for the crediting mechanism while

ensuring flexibility to allow the adaptation of the system based on the evolution of the

national and international context.


65

Description of the

activity

Sub-activity group 1: Cross-coordination

A cross-coordination activity will ensure consistency between the general approach

that will be developed, the specific features of each sector and other initiatives on the

subject (4C project, completion of the TNC and work on the national GHG inventory).

This activity will also look at cross-sectoral topics, such as the treatment of indirect

emissions due to electricity use.

√ This can be done through the creation of a ‘MRV’ working group within the PMU

(Project Management Unit see section 5.1.3) that will gather representatives from the

government and the relevant sectors as well as technical experts. This working group

will supervise all MRV activities and will ensure coordination between them. The group

will also provide training material and technical workshops.

Sub-activity group 2: Design of an institutional framework and operational

requirements for a monitoring and reporting system (general and sector-specific)

√ Development of a general institutional, legal and regulatory framework for

monitoring and reporting.

This framework will build on existing international experiences (including CDM, EU

ETS and the CSI Protocol) and will consider initiatives undertaken in other countries

(e.g., cement sector in Tunisia and Indonesia). This may take the form of a feasibility

study followed by the preparation of legislation and/or technical guide presenting the

principles and requirements of the system.

Operational requirements may include, among other things, data collection and data

accuracy requirements, data collection methods, factors for calculation and calculation

methods, procedures to be implemented at the installation level, quality

control/assurance procedures, requirements for the content and format of monitoring

plans, reporting formats (e.g. type of template for reporting emissions), frequency of

reporting, measures for responding to modifications and non-compliance, and what

organizational structures to put into place.√ Definition of operational requirements

specific to each sector, in cooperation with each industry

Cement

- Evaluation of the use of the existing framework (CSI Protocol for monitoring

and reporting) in Moroccan facilities, and suggestions for harmonization

across the sector

- Evaluation of the CSI Protocol taking into account international conventions

(e.g. upcoming UNFCCC guidelines on NMMs), and suggestions for

modifications

- Benchmarking with the practices in the cement sector in other countries

Phosphates

- Evaluation of the OCP monitoring and reporting methodology (carbon

footprint/software solution) taking into account international conventions

(e.g. IPCC guidelines), and suggestions for modifications

- Recommendations for changes to the OCP monitoring and reporting system

Electricity

- Development of an emissions monitoring and reporting system based on the

current DOS system used for monitoring production, taking into account

international conventions (e.g. upcoming UNFCCC guidelines on NMMs)

- Benchmarking with the practices in the electricity generation sector in other


66

94 The PMR supports country to establish a carbon market infrastructure that is consistent, credible, and potentially compatible (« 3C »). See

the PMR « Strategic orientation for the future of the PMR » note, published in October 2013, and available online

http://www.thepmr.org/system/files/documents/PMR_Draft_Strategic%20Note_October2013.pdf

countries

Sub-activity group 3: Piloting of the monitoring and reporting system

√ Development of an implementation timetable

√ Piloting of the scheme at installation level (e.g. support for data collection over a

year, for the development of monitoring plans and emissions reports, and for the

definition of installation procedures, etc.), and at the institutional level. For the

electricity sector, piloting will be done with the ONEE; a pilot scheme involving

individual installations will be considered at a later stage to integrate the other

operators of the sector in the sectoral crediting mechanism.

√ Regular progress evaluations

√ Final evaluation and recommendations for improvements

Sub-activity group 4: Planning of a verification and accreditation system

√ Verification and accreditation needs assessment (e.g. national vs. international

verification, type of standard required) and of the arrangements to integrate the

verification process in an international system

√ If needed, planning of the development of a verification and accreditation system

and/or of its integration in an international system. This activity will closely follow the

progress of international negotiations as well as any experience acquired in similar

systems from other regions or other mechanisms (CDM, EU ETS, CSI Protocol, ISO

standard 14064, 14065 and 14066) as well as discussions on the ‘3C’ approach to be

explored under the PMR94. The following points will be examined:

- Rules, principles, frequency and format of the verification process;

- Obligations and requirements for installations and verifiers;

- Standard for verifier accreditation;

- Roles and responsibilities for verifiers and for the PMU on reviewing and

approving monitoring plans and reports, and installation inspections.

This sub-group of activities will be used to determine if Activity 5 is required.

Sub-activity group 5: Planning of the development of an IT platform to manage

data and MRV

√ Benchmarking of the IT systems used in other countries for data and MRV

management

√ Assessment of the needs in Morocco and planning of the development of an

adequate and affordable IT platform

Expected

deliverable(s)


Working group, meetings and discussions, minutes of meetings, progress reports


requirements for a monitoring and reporting system (general and sector-specific)

Consultation workshops, sectoral studies to define sectoral requirements, legislation,

technical guides, templates for monitoring and reporting, and a DOS software system

for the electricity generation sector

http://www.thepmr.org/system/files/documents/PMR_Draft_Strategic%20Note_October2013.pdf


67

Sub-activity group 3: Piloting of the monitoring and reporting system

Timeline for implementation, database with data from each sector over a year,

technical support for facilities, workshops for sharing experiences and evaluating

progress, a final workshop, interim evaluation reports, and recommendations for

improvements

Sub-activity Group 4: Planning of a verification and accreditation system

National and international diagnostic (verification and accreditation needs) and

recommendations for the design of a verification and accreditation system

If needed, roadmap for the development of a verification and accreditation system

and/or its integration in an international system

Sub-activity Group 5: Planning of the development of an IT platform to manage

data and MRV

Study on existing IT systems for the management of data and MRV and needs in

Morocco

Technical specifications for the development of an IT platform that is adequate and

affordable for Morocco

Estimated budget

(USD)

Sub-activity group 1: 100,000



Sub-activity Group 4: 150,000

Sub-activity Group 5: 150,000

Total: 1,200,000

Responsible entity MdE, Ministry of Industry, Commerce, Investment, and Digital Economy (MCINET),

PMU-PMR

Schedule Duration: 1 year 9 months

Timeline: Q4 2015 – Q2 2017


68

Activity 4 Design of a verification and accreditation system, and piloting in the three sectors

covered by the MRP (electricity, cement and phosphates)

To be implemented after 2017, as part of a second tranche of activities

Activity objectives

Activity 3 will result in a roadmap for a verification and accreditation system for

Morocco. It will recommend, among other things, the development of a national

system or the integration in an international system. Activity 4 aims to implement this

roadmap.

Description of the

activity

The structure of the activity will be similar to that of Activity 3:

Sub-activity group 1: Cross coordination


requirements (general and sector-specific)

Sub-activity group 3: Piloting of the scheme

Expected

deliverable(s)


Working group, meetings and discussions, progress reports


requirements (general and sector-specific)

Consultation workshops, sectoral studies to define sectoral requirements, legislation,

evaluation of Moroccan verification capacity, and training plan for national verifiers


Timeline for implementation, technical support facilities, verifier training, workshops

for sharing experiences and evaluating progress, a final workshop, interim evaluation

reports, and recommendations for improvements

Estimated budget

(USD)




Total: 600,000

Responsible entity MdE, MCINET, PMU-PMR

Schedule Duration: 1 year 9 months

Timeline: Q2 2017 – Q4 2018


69

Activity 5 Design of an IT platform for data management and MRV, and its piloting in the three

sectors covered by the MRP (electricity, cement and phosphates)


Activity objectives

This activity will develop an IT platform for data management and MRV of emissions.

The activity described here by way of example is the development of a new IT

platform. However, Activity 3 will evaluate IT platforms in other countries and other

MBIs and will provide more details for the structure of an IT platform in Morocco. Such

structure could be based on the systems used in other countries and MBIs. In such

case, the budget of the activity could be less. The content of this activity will be

reviewed based on Activities 3 and 4. This activity will consist in the development of a

general data management module, specific modules for MRV, and cross-cutting

modules. The data management and monitoring modules will allow industrial facilities

to provide MdE with data on emissions and the monitoring approaches that will be

implemented (monitoring plans). MdE can use these modules to approve these

monitoring plans and manage monitoring data. Data management and reporting

modules will help the industrial sectors and participants to submit emissions reports to

the MdE.

Given the relatively small number of both sectors covered by the MRP and number of

actors within each sector, initial investment will be directed towards the

implementation of a basic infrastructure, which will allow participants to pilot data

management and operational MRV processes. Once the IT system has been tested and

participants are comfortable with it, it can then be adapted and extended.

Description of the

activity

This activity will be based around operational requirements and the identification of the

data to be monitored that will have been established during Activity 3.

√ Development of a data management module


70

A data management module is essential in any MBI regardless of how many sectors or

participants are involved. Throughout the definition, design and implementation of a

data management module, fundamental issues such as efficiency, replicability, security

and data validation need to be addressed, and a robust and replicable approach needs

to be established that can cope with future or changing needs. Furthermore,

centralized data will ensure that future mechanisms are implemented and managed in

a transparent and coherent way.

This activity will develop a module that will receive and process data provided by

industry participants, and if needed the verifiers and entities involved in accreditation.

For the pilot, it is recommended to set up a module for downloading or directly

entering data. The focus should be on developing a data template that matches the

requirements identified as part of Activities 3 and 4.

√ Development of a monitoring module

This module will enable the fulfilment of monitoring requirements, such as submission

of monitoring plans by industrial facilities and their approval by the Government. This

module will use data obtained through the data management module.

√ Development of a reporting module

This module will enable the fulfilment of reporting requirements, including the

submission of emissions reports and associated verification statements. This module

will use the data obtained through the data management module.

√ Development of a verification (and accreditation) module

This module will enable the fulfilment of the requirements of the verification of

emissions reports and the data related to accreditation. This module will use the data

obtained through the data management module.

√ Development of cross-cutting modules

In addition to the above modules a series of ‘cross-cutting’ modules will be developed

as part of this activity (entity management, non-GHG reporting management, user

management, process management, authentication and security).

Development of these different modules will take place over several stages. The stages

and the precise schedule will depend on the progress of Activities 3 and 4. It is

recommended that one technical organization is contracted that can carry out all of

these steps:

Step Description Duration Budget (USD)

Project lead Use of a technical project manager to oversee delivery of the IT system.

24 months 200,000

Requirements Definition of technical specifications: - functional and non-functional requirements; - system workflow; - data management requirements - interfaces with industrial systems.

6 months 250,000

Design and construction

Technical design and implementation of data management, MRV and basic cross-cutting modules.

6 months 350,000

Independent testing

Independent functional and non-functional tests of the system.

2 months 150,000

Acceptance testing

MdE acceptance of the system 2 months 125,000

Pilot phase Trial system set up in industrial 6 months 150,000


71

3.2 Target/goal setting

3.2.1 Current situation (institutional and sectoral levels)

The Government has not yet set any formal mitigation targets or objectives at either the national or

sectoral level. However, the three sectors have adopted initiatives which pave the way for targets.

The electricity generation sector has no sectoral emissions reduction target, but it has two other key

goals:

An installed renewable electricity capacity target of 42% by 2020, and

An energy efficiency target of 12% by 2020 compared to BAU.

In the cement sector, each cement group has voluntary CO2 emissions reduction targets in line with

their respective policies.

installations, with enhancements/updates made to the system.

Infrastructure Design and implementation of the hosting infrastructure (physical or virtual servers and associated hardware e.g. firewalls).

2 months 100,000

TOTAL 1,325,000

Expected

deliverable(s)

Centralized IT system for data management and MRV

Pilot: submissions of monitoring and emissions reports in the IT system, verification of

emissions reports in the IT system by the verifiers

On-line documentation

Training workshops with MdE participants, and other Ministries and sectors, verifiers,

and accreditation entities

Estimated budget

(USD) 1,325,000

Responsible entity MdE – PMU-PMR

Schedule Duration: 2 years

Timeline: Q2 2017 – Q1 2019

Activity 6 Preparation for expansion of the MRV system to other economic sectors in Morocco


Activity objectives

Once the MRV system is in place in the three sectors covered by the MRP, the

government will be able to expand this system to other economic sectors, such as the

built environment and transport sectors considered in the early phases of the MRP.

Description of the

activity

√ Evaluation of the MRV system pilots in the three sectors covered by the MRP

√ System upgrades

√ Preparation for expansion of the system to other/some other sectors in Morocco

Expected

deliverable(s)

Evaluation of the MRV system pilot

Roadmap for MRV system expansion

Estimated budget

(USD) Initial estimate for 3 sectors (buildings, transport and waste): 900,000

Responsible entity MdE


Timeline: Q3 2019 – Q2 2020


72

In the phosphates sector, the OCP is currently carrying out preparatory work to set targets for

reducing emissions by 2020.

An important step in preparing MBIs will be to continue the work begun in each of these sectors and

to develop a thorough understanding of the emissions profiles of different economic sectors in order

to set appropriate targets. There are two main methodologies for setting a target: a bottom-up

approach or a top-down approach. Targets can take different forms. They can be absolute targets, or

instead be intensity-based or technology-based. Further details on target setting approaches and

types of targets are presented in Annex 8.2.

In all cases and regardless of the approach taken, it is recommended to assess the emissions, the

mitigation potential, and costs and barriers to implementing reduction measures in each sector, in

order determine if the targets are feasible in the time available. In 2009, the mitigation potential by

2030 and associated investment costs in different sectors were determined as part of the SNC. This

work is currently being updated for the TNC. Development of the LEDS as part of the LECB project

also addresses target setting. The TNC and LEDS will provide a basis for assessing the feasibility of

the proposed targets, which will need to be updated accordingly as the latest mitigation options are

identified. The PMR project will ensure that synergies with the TNC and LEDS are capitalized.

The targets set will also depend on the type of MBI introduced. In a crediting mechanism, the target,

or a portion thereof, can be adopted as a ‘crediting threshold’ (see Building Block 4).

The following initial considerations must be taken into account when setting GHG emissions reduction

targets in each sector. Such considerations and their impact on target setting will be assessed in more

details under Activities 1 (policy mapping), 7 (establishment of baselines) and 8 (assessment of

mitigation potential).

All sectors:

Interaction with existing objectives, such as the renewable energy objective of 42% of the

installed power in 2020 and the energy efficiency objective of 12% by 2020 and 15% by

2030, of which 48% is for the industry as a whole.

Definition of scope, and treatment of indirect emissions from electricity in the cement and

phosphates sectors. Overlap and double-counting of emissions and emission reductions will

need to be avoided.

Electricity:

The renewable energy and energy efficiency targets are only a part of Morocco’s strategy to

decrease energy dependence and diversify the energy supply, and other elements such as the

expansion of a coal-fired power plant in Jorf Lasfar (2x350MW) and a new coal-fired power

plant in Safi (3x660MW)95 are also important in the Moroccan energy strategy.

The number of self-generators is growing, so the scope of the target should be made clear.

Cement:

Early action on mitigating emissions;

Emissions resulting from co-incineration of waste;

Capacity extension of existing plants and new plants;

95 MEMEE (2013b)


73

Interaction with mitigation programs in international cement groups with a presence in the

Moroccan cement industry;

Overlap with the electricity generation sector with regards to wind farms installed by cement

companies.

Phosphates:

Early mitigation action by OCP;

Additionality of energy efficiency measures;

Interaction with OCP’s various environmental strategies, e.g. integration of sites for water

savings may also result in reduction of energy consumption and GHG reduction.

3.2.2 MRP Activities – Preparing to set targets

Two types of activities for preparing the setting of targets/objectives are proposed in the MRP:

Setting baselines in the three sectors covered by the MRP;

Evaluation of the mitigation potential in the three sectors covered by the MRP, and the

barriers to achieving this potential.

Activity 7 Establishing a baseline in each of the three sectors covered by the MRP (electricity, cement

and phosphates)


Activity objectives

The baseline is a key component in understanding historical and future emissions trends

at both the sector and national economy level. It is also an important tool for the setting

of sectoral mitigation targets and, in a sectoral crediting system, the setting of a

crediting threshold.

The aim of this activity is to set baselines in each of the three sectors covered by the

MRP. It will build on data collected during the pilot phase of the monitoring and reporting

system, on works carried out during the development of TNC, on the efforts of the PMR

working group on the subject, as well as on the experience and data of relevant

initiatives (e.g., CSI in the cement sector).

Description of the

activity

For each sector:

- Evaluation of historic emissions data

- Development of a methodology for establishing a baseline

- Setting of baselines

Historic and projected data and existing methodologies (e.g. CDM) will be examined, the

impact of existing policies, including these identified during Activity 1, and sectoral

initiatives will be considered. The international negotiations, which will determine the

modalities for setting sectoral mechanism baselines, will be closely followed and progress

in the negotiations will be incorporated into the implementation of this activity. The

Moroccan government will share the experiences gained during this activity in

international negotiations in order to assist progress. The development of baselines will

be iterative and will include several rounds of discussion between stakeholders (sectors

and government). The PMU will ensure consistency and complementarity in the approach

used in the different sectors, notably in the treatment of indirect emissions.

Expected

deliverable(s)

For each sector:

- Study presenting three possible baselines for different appropriate timeframes


74

(e.g. 2020, 2025 and 2030) with, for each baseline, the assumptions used,

calculations methodologies used, and a recommendation for which baseline to

adopt

- Files with underlying calculations

- Stakeholder consultation workshops

Estimated budget

(USD)

Per sector: 130,000

Total: 390,000

Responsible entity PMU-PMR

Schedule Duration: 1 year

Timeline: Q4 2015 – Q3 2016

Activity 8 Evaluation of mitigation potential in the three sectors covered by the MRP (electricity,

cement, phosphates)


Activity objectives

A good knowledge of the sector’s mitigation potential is necessary to design carbon

pricing instruments, set appropriate incentives for installations to invest in mitigation

measures, and understand the impact of the instrument on the Moroccan government’s

budget. The three sectors have already implemented many mitigation measures and are

willing to look at other actions as well as the regulatory context needed to facilitate

them. This activity will be supported by the ongoing development works of the TNC and

the experience and data of relevant initiatives (e.g., CSI in the cement sector).

The aims of this activity include:

- An external evaluation of the existing mitigation potential estimates in the

electricity generation and phosphates sector.

- An independent expert assessment of the mitigation potential in the Moroccan

cement sector.

Description of the

activity

√ Evaluation of the existing mitigation potential estimates in the electricity generation

and phosphates sector. Recommendations to improve such estimations and

standardization with the assessment methods applied in other sectors covered by the

MRP and the relevant sector in other countries (benchmarking)

√ Evaluation of mitigation potential in the cement plants and at the cement sector level:

abatement measures, potential, costs, implementation barriers, and required regulatory

environment. The analysis will build on existing studies on the Moroccan cement sector

and on the international mitigation experience in the sector.

Expected

deliverable(s)

Electricity and phosphates sectors:

- Benchmark studies by consultants with special expertise in the sectors and

recommendations

- Workshops with representatives of the industry, the government and the

external expert consultants

Cement sector:

- Study by consultants with special expertise in the cement sector

- A model

- Workshops with participants from industry, government and specialist external

consultants

Estimated budget

(USD) 150,000

Responsible entity PMU-PMR, ONEE, APC, OCP


75


Timeline: Q4 2015 – Q3 2016

The CSI’s ‘Technology Roadmap’ initiative aims to facilitate the development of technical roadmaps

for the cement sector. A global roadmap as well as national roadmaps, for instance one for India,

have been developed. The activities at the heart of the CSI’s initiative support the evaluation of

mitigation potential and the establishment of baselines, and have potential synergies with MRP

activities for the cement sector. A discussion was initiated between the government and the cement

sector on the possibility of developing a technical roadmap to support or complement Activities 7 and

8.

3.3 Registry

3.3.1 Current situation

Morocco currently does not have a national registry. Such a registry, and/or a tracking tool, is needed

to integrate different MBIs into one centralized system. This will ensure proper handling and

accounting of carbon credits and/or emissions allowances. This system also allows transfer of credits

between accounts. The only experience Morocco has had with registries is with the CDM registry of

the UNFCCC. A national registry will therefore need to be designed and implemented to account for

credits generated under sectoral crediting mechanisms. It is important that this registry is a coherent

part of the efforts led on the design of a national MRV and data management system (Activities 3 to

6). The focus is first to establish basic infrastructure for MBIs, as a registry is not yet needed. Design

of the registry is therefore proposed to take place under a second PMR grant, and the details of the

proposed activity will be reviewed during the implementation of activities covered by the first PMR

grant.

A good understanding of Morocco’s vision for mitigation policy is a prerequisite for a registry that can

respond to short, medium and long term needs. This will allow the right building blocks to be put in at

the start of the implementation phase, from which emerging and evolving policies can be developed

and translated into systematic and programmatic changes to the underlying IT system. The

development of the registry will therefore be highly dependent on the decisions the Moroccan

government takes relating to MBIs.

3.3.2 MRP Activity – Implementation of a registry

Activity 9 Design and pilot of a national registry


Activity objectives This activity entails the design and piloting of a national registry

Description of the

activity

This activity will build on existing or design-phase MBIs, as well as on the MRV system

and IT platform in place.

√ Development of the institutional, legal and regulatory framework

Development of the institutional, legal and regulatory framework, and the operational

requirements, for a national registry

√ Development of the registry module


76

This module establishes a series of ‘core’ and optional functions, which depend on the

type of MBI implemented.

The core functions include:

Transaction management: functions relating to the creation, movement and

cancellation of carbon assets (issuance, allocation, transfer, surrender, conversion and

retirement).

Unit management: functions relating to the identification of, and rules for, different

types of units, unit blocks and serial numbers as well as the management of

parameters related to these units such as allocation limits and validity.

The optional functions include:

Project management: a module for the creation, verification, validation and monitoring

of carbon credit projects and mechanisms

Compliance management: a module for managing compliance obligations (e.g.

surrendering allowances) and penalties

√ Expansion of existing modules

Data management module

It will be extended in order to provide all relevant MBI data, e.g. absolute emissions

(emissions trading system) or sectoral emissions and crediting thresholds (sectoral

crediting mechanism).

Cross-cutting modules

These will be modified to cover elements specific to the registry, such as transaction

management and increased security.

The development of these different modules will take place over several stages. It is

recommended that one technical organization be contracted that can carry out all these

stages.

Expected

deliverable(s)

Institutional, legal and regulatory framework; operational requirements

Centralized IT system (data management, MRV and registry functionality)

Online documentation

Workshops with participants from MdE and other Ministries and sectors

Estimated budget

(USD) > 750,000

Responsible entity Moroccan government

Schedule Duration: > 1 year

Timeline: > Q3 2019

3.4 Institutional and regulatory framework

The PMR grant will support the establishment of a regulatory framework for data management and

MRV (see Activities 3 to 6). Alongside this the PMR will facilitate the establishment of MBI governance,

the foundations of which will be laid down during Activity 1. The PMR, through Activity 10, will also

support the establishment of a regulatory framework to drive mitigation measures in the three sectors

covered by the MRP.


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Activity 10 Support for the establishment of a regulatory framework for mitigation measures in the

three sectors covered by the MRP (electricity, cement, phosphates)


Activity objectives

This activity aims to support the definition and the establishment of a regulatory

framework to promote the implementation of mitigation measures in the three sectors

covered.

In the cement sector in particular, this concerns co-processing, and organization of the

sector (oil, tires, hazardous waste, household waste, etc.). This can, for example, take

the form of an agreement between the government, the industry, and the relevant

stakeholders.

Description of the

activity

√ Setting up the necessary regulatory framework (legal structure, conditions for

participation and execution, etc.)

√ Support for the drafting of legislative/institutional texts (e.g. external legal support)

√ Support for implementation of the regulatory framework

Expected

deliverable(s)

Stakeholder consultation workshops

Meetings with decision makers

Suggestions for legislative/institutional texts

Estimated budget

(USD) 120,000

Responsible entity MdE, APC, ONEE, OCP


Timeline: Q2 2015 – Q1 2017

3.5 Summary of activities proposed in the MRP

The activities proposed in this Building Block are presented in the table below.



3 Design of a MRV system, and piloting of the MR in the three sectors covered

by the MRP (electricity, cement and phosphates) First

4 Design of a verification and accreditation system, and piloting in the three

sectors covered by the MRP (electricity, cement and phosphates) Second

5 Design of an IT platform for data management and MRV, and its piloting in the

three sectors covered by the MRP (electricity, cement and phosphates) Second

6 Preparation for expansion of the MRV system to other economic sectors in

Morocco Second

7 Establishing a baseline in each of the three sectors covered by the MRP

(electricity, cement and phosphates) First

8 Evaluation of mitigation potential in the three sectors covered by the MRP

(electricity, cement, phosphates) First

9 Design and pilot of a national registry Second

10

Support for the establishment of a regulatory framework for mitigation

measures in the three sectors covered by the MRP (electricity, cement,

phosphates)

First


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4 Planning for a market-based instrument

In this Building Block the different types of MBI are described, and a preliminary evaluation of the

possible MBIs in Morocco is presented. It is concluded that at this stage a sectoral crediting

mechanism is the most promising option (see below and section 2.1.1). This Building Block also

proposes activities to operationalise such a mechanism. The implementation of these activities is

planned once the foundation laid by the activities covered by the first tranche of PMR funding will

have been put in place.

4.1 Types of MBI

Different types of instrument can be used to facilitate emissions reductions across the economy.

Activity 1 will allow the identification and analysis of these instruments in the Moroccan context.

These mitigation instruments can be either market-based or non-market based (see Annex 8.3 for

more details):

Market-based instruments: Emissions trading systems and crediting mechanisms;

Non-market based instruments: Standards and regulations setting the performance limits

related to GHG emissions, positive financial incentives such as subsidies, tax breaks and soft

loans that enable participants to overcome financial barriers to invest in emission reductions

measures, research and development programmes, voluntary agreements with emitters that

set a voluntary target regarding GHG emission reductions in return for certain benefits,

capacity building and informing emitters on GHG emission reduction options and the benefits

and potential cost savings.

GHG emission reductions policies almost always use a combination of market-based and non-market

based instruments to achieve their emission reduction target, as each instrument has their own

benefits and disadvantages. The appropriate instrument to reduce GHG emissions is therefore specific

to the sector and the local situation.

The following section explores the possible development of an MBI in Morocco, building on section

2.1.1.

4.2 Assessment and initial selection of an MBI for the three sectors covered by the MRP

Section 2.1.1 showed that, among existing MBIs, a sectoral crediting mechanism seems to offer the

most potential at this stage, bearing in mind the context in Morocco in terms of GHG emissions, the

economic development of the country, its experience with the CDM, and the international situation.

This could evolve into an emissions trading scheme at a later stage.

The geographic proximity of Morocco with the EU and the activities of companies covered by the EU

ETS in Morocco (for example cement companies) open up possibilities for MBIs implemented in

Morocco to interact with the EU ETS. This also poses the question of potential carbon leakage through

production and investments shifting to Morocco where positive incentives would be given for efforts in

carbon intensity reduction and, depending on the design of the sectoral crediting scheme, no penalty


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would be applied in case of bad performance. This will be explored during Activity 1, which will assess

the interaction between potential MBIs in Morocco and other established MBIs like the EU ETS, and in

Activity 11 (see below), which will design the sectoral mechanism scheme and ensure synergies

between the schemes is maximised and risks of carbon leakage are minimised.

The diagram below presents one possible path for development of MBIs in Morocco. However, this

diagram is only given by way of illustration and represents a set of possible scenarios. In practice, the

development and timing of implementation will depend heavily on advances in climate policy not only

at the national but also at the international level.

Figure 15 Possible development of market based instruments in Morocco

4.3 Preparation for the implementation of a sectoral crediting scheme

4.3.1 Current sectoral crediting schemes

The exact shape of any potential international sectoral crediting scheme is currently unknown, and is

under discussion within the UNFCCC, namely under the form of the NMM. Morocco could aim to join

this fledgling NMM, or instead to provide credits to the scheme that could be bought by governments

on a bilateral basis. Activity 11 described in section 4.3.2 is intended to establish the key elements of

a sectoral crediting scheme in the 3 sectors covered by the MRP and pilot the scheme. Activity 12 will

review the scheme and prepare its improvement and possible expansion to other sectors of the

Moroccan economy. These activities will be reviewed during the first years of the PMR project in light

of national and international progress on the carbon market.

The key elements of the sectoral crediting scheme should give confidence to buyers that the credits

they buy have economic and environmental value. These elements should include a crediting

threshold, a method for quantifying emissions reductions, an MRV system and rules for participating

in the mechanism. All three sectors have had some experience with the CDM, ranging from successful

validations and registrations of projects to issues with additionality. Such experience will be analysed

and build upon in the design of the sectoral crediting mechanism. The potential interaction of the

sectoral crediting scheme with the EU ETS will be assessed during Activity 11, building on the initial

assessment to be carried out in Activity 1, and taken into account in the design of the sectoral

crediting scheme.

The crediting threshold is an essential component in determining the number of credits to be

awarded. This threshold is closely linked with sectoral baselines and mitigation objectives. If it is


80

decided to continue with the design of such a mechanism for the three sectors covered by the MRP,

the following factors will need to be considered during the establishment of the crediting threshold:

The phosphates sector has a detailed knowledge of its emissions, as well as a pro-active

programme to reduce emissions. While the phosphates sector faced issues with financial

additionality under the CDM, it is impacted by non-financial barriers to mitigation. The setting

of a crediting threshold needs to be balanced between a threshold that rewards early action

and one that supports actions that would have occurred without the support provided by such

a mechanism;

The electricity sector is evolving, with other producers gradually joining ONEE. In addition,

there are a number of existing renewable energy initiatives as well as other international

programmes, such as NAMAs, which must be considered so that any crediting system offers

something in addition to these programmes, and has a real impact. Also, when establishing

the baseline and crediting threshold, overlap with other sectors (e.g. cement and buildings),

should be addressed;

The cement industry is composed of a limited number of players, and confidentiality of

information is key. Therefore, the baseline must be constructed so as not to compromise

confidentiality, and must also find a balance between the actors who are innovative and those

who are less so, while rewarding the early action of the sector for mitigation;

Crediting thresholds are likely to be ambitious baselines which result in net mitigation.

Options for ensuring net mitigation will need to be assessed.

The treatment of indirect emissions from electricity use will need to be considered in the

determination of crediting thresholds and the allocation of emission reductions between the

sectors.

4.3.2 MRP Activities – Design of a sectoral crediting mechanism

To date, a sectoral crediting mechanism seems to be the most suitable MBI for each of the three

sectors covered by the MRP. The activities presented in the following tables are therefore intended to

lead to the design of a sectoral crediting mechanism for each sector, and its expansion to other

sectors. However, this initial assessment and the proposed activities, indicatively listed, will be

reviewed during Activity 1, in view of any progress in international negotiations that will determine

the modalities for the definition of an NMM, the demand of credits and discussions on the ‘3C’

approach that the PMR will explore.

Activity 11 Design and piloting of a sectoral crediting mechanism for the three sectors covered by

the MRP (electricity, cement and phosphates)


Activity objectives

The aim of this activity is to establish a clear roadmap for the implementation of a

sectoral crediting mechanism and to set out the main building blocks of the

mechanism, then to implement such roadmap and pilot the mechanism in the three

sectors covered by the MRP.

This activity will build upon the lessons learnt with the CDM in Morocco, the experience

in other countries through the PMR and other similar initiatives, and the progress in

the international negotiations under the UNFCCC.

Description of the

activity

Sub-activity group 1: Design of the sectoral crediting mechanism in the three sectors

covered by the MRP


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√ Design of the institutional, legislative and regulatory framework for the crediting

scheme (including the framework for energy pricing, including subsidies and

compensation funds)

√ Economic impact analysis of a crediting scheme (including the impact of the removal

of subsidies in the energy sector)

√ Establishment of the terms for participation in the crediting scheme

√ Evaluation and selection of mechanisms to encourage private sector participation in

the crediting scheme, including financial incentives, financial models for participants

and conditions for the participation of the national financial system

√ Assessment of the carbon leakage risk under the EU ETS towards Morocco and of

options to mitigate this risk (e.g. conditions for participation in the sectoral crediting

mechanism, conditions for a possible inclusion of sectors under the EU ETS at a later

stage and/or for the linking of the scheme with the EU ETS)

√ Definition of the technical basis for the scheme (including baseline scenario,

crediting threshold, MRV systems, eligible mitigation measures). This basis will be

based on the activities set out in Building Block 3.

In terms of the establishment of crediting thresholds, the following sub-activities will

need to take place in each sector:

- Evaluation of historical emissions data

- Development of a methodology for determining crediting baselines

- Establishment of a crediting baseline

- The establishment of the thresholds will be iterative and will include several

rounds of discussion between stakeholders (sectors and government).

Sub-activity group 2: Piloting of the sectoral crediting mechanism in the three

sectors covered by the MRP

√ Piloting of different elements of the sectoral crediting mechanism, including:

Institutional, legislative and regulatory framework;

Private sector participation in the crediting mechanism;

Technical basis for the mechanism.

Expected

deliverable(s)

Sub-activity group 1: Design of the sectoral crediting mechanism in the three sectors

covered by the MRP

A roadmap for the implementation of a sectoral crediting scheme

For each sector: A study proposing a crediting threshold, with different timeframes,

along with the assumptions used in the study and the calculation methods and

attached calculation files

Consultation workshop

Sub-activity group 2: Piloting of the sectoral crediting mechanism in the three


Working groups and meetings with representatives from the government and the

industry

Intermediary reports on the progress of the implementation of the mechanism

Final report on the piloting phase, with the recommendations for the following phases

Estimated budget

(USD)

Sub-activity group 1:

250,000 for the roadmap

100,000 per sector for the crediting threshold

Total: 550,000

Sub-activity group 2:


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For each sector: 200,000

Total: 600,000

Total activity: 1,150,000

Responsible entity MdE/DPCC, Ministry of Finance and PMU-PMR


Timeline: Q1 2017 – Q4 2017

Activity 12 Evaluation of the pilot crediting mechanism and expansion of the scheme to other sectors

of the Moroccan economy


Activity objectives

Following Activity 1, the Moroccan government will be able to identify the carbon

pricing instruments most suitable for Morocco and various sectors, including the

sectors not covered by the first PMR grant, such as buildings and transport which were

involved in the initial phases of the PMR project. The type of instrument may vary for

each sector. If it is decided that a crediting mechanism is suitable for sectors other

than those in the MRP then a clear roadmap for expansion of the mechanism to other

sectors will be needed, and a pilot phase should be considered. Before this however, an

evaluation of the pilot in the three MRP sectors is suggested in order to capture the

lessons learned in the first months of operation.

The aim of this activity is to evaluate the pilot, establish the roadmap and pilot the

expansion of the mechanism.

Description of the

activity

√ Evaluation of the results of the pilot mechanism in each of the three sectors covered

by the MRP and suggestions for improvement (amendments to the existing scheme,

consideration of evolution to an emissions trading scheme/integration in the EU ETS)

√ A roadmap for expansion of the crediting mechanism (similar to Activity 11). The

roadmap will include the proposed design of the scheme for each sector

Expected

deliverable(s)

Roadmap for the implementation of a sectoral crediting mechanism expanded to cover

other sectors

Action plan for the improvement of the established scheme in the 3 sectors

Working groups and meetings with representatives from government and the

participating sectors

Intermediate progress reports on the implementation of the mechanism

Final report on the pilot phase, with recommendations for next steps

Estimated budget

(USD)

Initial estimate for evaluation: 200,000

Initial estimate for expansion to 3 sectors (buildings, transport and waste): 900,000

Total: 1,100,000

Responsibility entity Moroccan government

Schedule

Duration: > 1 year

Timeline: Starting from Q1 2019


83

4.4 Summary of activities proposed in the MRP

The activities proposed in this section are indicative and will be reviewed in light of the national and

international contexts, particularly with regards to the demand for carbon credits. These activities are

summarised in the table below.



11 Design and piloting of a sectoral crediting mechanism for the three sectors

covered by the MRP (electricity, cement and phosphates) Second

12 Evaluation of the pilot crediting mechanism and expansion of the scheme to

other sectors of the Moroccan economy Second


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5 Organization, communication, consultation and

engagement

The stakeholder engagement, capacity building and organisational processes involved in the

implementation of the MRP activities are critical to successfully preparing for the introduction of MBIs.

This Building Block summarises the activities already carried out in these areas, and the proposed

activities for the implementation phase in the MRP.

5.1 Organisational structure of the process

5.1.1 Key stakeholders

The table below shows the stakeholders involved in the preparation efforts for the carbon market.

Table 14 Stakeholders involved in the preparation for the carbon market

Type of

stakeholder Organisation

General

Ministry of General Affairs and Governance (MAGG) - – Steering Committee

Ministry of Economy and Finance(MEF) – Steering Committee, Head of international finance flow

management, including the PMR

Deputy Ministry to the Minister of Energy, Mining, Water and Environment in charge of the

environment (MdE) – Steering Committee, Ministry in charge of national climate policy

Energy** Ministry of Energy, Mining, Water and Environment, Department of Energy and Mining –

Directorate of Observation and Planning (DOP)

Industry** Ministry of Industry, Commerce, Investment and the Digital Economy (MCINET)

Electricity* National Electricity and Water Office (ONEE), Electricity Branch

Phosphates* National Phosphates Company (OCP)

Cement* Professional Association of Cement Producers (APC)

APC Members (cement producers)

Transport** Ministry for Equipment, Transport and Logistics, Transport Department

Moroccan Logistical Development Agency (AMDL)

Buildings**

Agency for the Development of Renewable Energies and Energy Efficiency (ADEREE)

Ministry for Housing and Urban Policy

Ministry of Urban Planning and Land Management

Forest** High Commissions for Water, Forests and the Fight against Desertification (HCEF-LCD)

Planning** High Commissioner for Planning (HCP)

Agriculture** Ministries of Agriculture and Fisheries (MAP)

Agricultural Development Agency (ADA)

Donors Other donors (European Commission, GIZ, Islamic Development Bank – IDB, UNDP, UNEP)

Notes *Sectors covered by the MRP

** Members of the Advisory Committee


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5.1.2 Stakeholder engagement process

Over the course of the four PMR missions (in May, July, September 2013, and January 2014), the

different stakeholders (governmental and sectoral) presented in the structure below asked to

contribute to the current MRP preparation phase have expressed their willingness, availability and

commitment to help Morocco develop its proposal for a carbon market (MRP).

Figure 16 Institutional structure for the preparation of the MRP

The PMR focal point (Steering Committee) in Morocco was involved throughout the MRP development

process and played a key role in shaping the strategic directions of the MRP and the proposed

activities. During the missions, the MdE was present during meetings with other stakeholders to

ensure the understanding of the process and content and answer any questions, particularly relating

to government. The Steering Committee played an important role in the preparation phase of the

proposal in Morocco, contribution to the progress of preparations and demonstrating the commitment

of the Moroccan government.

The PMR Advisory Committee, comprising several ministries

and institutions (see Table 14 and Figure 16) has also

contributed to the progress of this phase. Representing the

various sectors identified under the PMR, the committee has

strongly contributed to improving the MRP, particularly by

providing data and giving feedback on the MRP itself.

In summary, the various stakeholders involved in the process

played in important role in:

Meeting with the DPCC of MdE (22/01/14)


86

Maintaining the momentum of the project by ensuring

cross-departmental government support and

involvement;

Providing a private sector perspective on these

issues;

Engaging with the potential of a novel MBI in

Morocco, and asking challenging questions;

Providing the consultants with valuable and detailed

data.

The consultation and engagement process carried out during the MRP preparation is shown in Figure

17, below. The programme for each of the four missions, shown in Annex 0, demonstrates the efforts

and the active engagement of stakeholders throughout the process. During each mission meetings

with both institutional and sectoral stakeholders were held.

During this third mission, which began on 23 September 2013 and

lasted for one week, meetings were organised with various

stakeholders to present the status of the MRP and to lead in depth

discussions on the possible activities in each of the relevant sectors.

The discussions have made a significant contribution to the process,

and have helped to shed light on the needs of stakeholders and the

best ways to answer these needs. The participation of different

Ministries has given them real ownership over the issue, and shown

their support for the PMR initiative. Donors in charge of other

mitigation projects were also consulted to maximize synergies

between initiatives and avoid duplication.

This involvement continued and deepened through the fourth

and final mission, which started on January 21, 2014 and

ended at the end of the same week. The mission sought the

participation of stakeholders and external experts appointed

by the PMR Secretariat to work on finalizing the proposal. The

mission gave also the opportunity to gather some feedback

from experts and to ensure an exchange with stakeholders, focusing on technical elements and

questions.

Outside of missions dedicated to the preparation of the MRP,

stakeholder engagement was maintained throughout the process thanks to the team of local

consultants (ECI) and the World Bank Office in Rabat, whether for data collection or questions.

Specific meetings were held with some stakeholders, such as

the workshop organized with APC on December 4, 2013 (see

Program in Annex 0)

The stakeholders involved in the preparation of the MRP are

likely to be the main players in the development of any MBI in

the future. Indeed, the involvement of these organisations and

key personnel at this early stage is crucial in order to build

capacity and implement an efficient mechanism in the future,

particularly in new sectors such as buildings or transport beyond the first phase of the PMR.

Meeting with OCP (24/01/14)

Meeting with ONEE (23/01/14)

Meeting with APC (22/01/14)

Internal work meeting with DPCC (23/01/14)


87

Kick-off MissionMay

2013

Stakeholder

Consultation

Mission

Development

Mission

Proposal

Refinement

Mission

July

2013

Missions in

Morocco

September

2013

October

2013

January

2014

Other

engagement

activities

MRP version PMR Stage

March

2014

May

2014

EC workshop on

NMMs and a

crediting scheme

August

2013

November

2013

December

2013

February

2014

PA7 in Marrakech

MRP 1

MRP 2

MRP 3

MRP 4

MRP 5

final

Presentation on MRP

progress

PA8 in Mexico City

Presentation of the

draft MRP (MRP4)

PA9 in Cologne

Presentation of the final

version of the MRP

(MRP5)

EC workshop on

carbon market

instruments

PMR workshop on

activities proposed

for the cement

sector

Continuous engagement on

the ground

Figure 17 Stakeholder engagement and consultation activities during preparation of the MRP

5.1.3 MRP Activity – Coordinating the implementation of the MRP

The next step, once the Moroccan government has received the funding from the PMR, will be to

implement the activities proposed in the MRP. This will require the establishment of a Project

Management Unit (PMU), to:

1) Ensure effective coordination between different PMR partners (institutions and participating

sectors), as well as donors involved in projects related to GHG mitigation;

2) Ensure proper management of the operational aspects of activities (preparation of terms of

reference, planning, monitoring, etc.);

3) Gather and consolidate knowledge gained on GHG mitigation in Morocco into one knowledge-

sharing and management platform, and

4) Drive the establishment of MBI governance systems in Morocco.


88

The Moroccan government proposes that the PMU be headed by the DPCC of the MdE, which currently

represents the CDM DNA under the guidance of a Steering Committee under the direction of the MdE.

The National CDM Board could be overhauled into a National Board for Market Mechanisms, and could

serve as the Orientation Committee for the project. A Technical Implementation and Monitoring

Committee will be established. It will include representatives from the PMU, sectoral representatives

particularly from the three sectors involved in activity implementation, and their relevant government

Ministries.

The institutional structure presented below takes into account the current context in Morocco. This

structure might change according to any institutional change, particularly in relation with the PCCM

and the results of Activity 1 on the governance of MBIs.

Figure 18 Institutional structure of the project

The various entities proposed for the institutional structure will have the common role of ensuring the

sound operation of the project and the proposed activities. However, based on the internal

composition of each entity, specific roles will be attributed.


89

Activity 13 Establishment and Operation of a Project Management Unit


Activity objectives The aim of this activity is the establishment and operation of the PMU, which will be in

charge of the management, coordination and realisation of MRP activities.

Description of the

activity

√ Defining the Terms of References (ToRs) of the PMU (national and international

technical support), recruiting and training staff (including national coordinator, and

financial and administrative assistance), and purchasing necessary equipment ;

√ Operation of the PMU (PMU staff and national and international consultants)

√ Strengthening the national institutional framework for carbon market instruments,

by taking advantage of the experience of the National CDM Board.

Expected

deliverable(s)

Implementation and management of MRP activities:

- ToRs for the PMU;

- An operational PMU (staff, resources)

- Annual plan for proposed MRP activities, and ToRs for these activities;

- Coordination, preparation and implementation of these activities, and

monitoring and reporting of the associated budget;

- Establishment of a platform for managing and sharing knowledge on

mitigation (potentially in collaboration with the 4C project);

- Communication plan and communication tools;

- Assessment of lessons learned at the end of the project;

- Support in preparing an institutional carbon market framework for the post-

MRP

- Coordination with other ongoing or planned programs and initiatives

Estimated budget

(USD)

600,000

Responsible entity MdE/DPCC and PMU-PMR


Timeline: Q1 2015 – Q3 2017

5.2 Capacity building

5.2.1 Capacity building during the MRP preparation phase

Capacity building has been identified since the inception of the PMR project as a key component in

making preparation for a carbon market as efficient as possible. Therefore capacity building has been

marked as a key element for inclusion in the preparation and implementation phases of the MRP.

Through the different missions and meetings held, the actors, needs and priorities relating to capacity

building have been identified. In order to respond to this axis, several activities have been scheduled

so far, including:

A workshop financed by the European Commission (EC) and held in September 2013 in Rabat,

to describe the proposed structure of NMMs at the international level, along with other

important concepts relating to development of a crediting scheme. This workshops involved

both the private and public sectors;

Since the beginning of Morocco’s involvement with the PMR in 2011, the members of the

Steering Committee (Comité de pilotage) have benefited from workshops organised in

conjunction with meeting of the PMR Partnership Assembly (PA) which have enabled capacity

building in subject areas relating to various possible market instruments;


90

Due to the 7th PA being held in Marrakech on 22 and 23 October 2013, technical workshops

were held alongside this PA, including a second technical workshop organised by the EC. The

members of the Steering Committee and relevant sectors were invited to participate in the

workshops to help strengthen their knowledge and capacity on issues relating to carbon

market instruments, and to keep up to date on the experiences and state of progress in other

countries;

Participation by stakeholders in all these different workshops demonstrates their commitment

to following and contributing to the development process and allows for a solid foundation on

which to implement the MRP.

5.2.2 MRP Activities – Capacity building during the MRP implementation phase

The continuation of the efforts to build capacity begun during the MRP preparation phase is necessary

for the MRP’s success, and more broadly speaking, is an essential element in the establishment of an

MBI in Morocco. Activity 14 presented in the table below, will ensure the continuation of stakeholder

capacity building efforts begun during the MRP preparation phase.

Activity 14 Capacity building in both the private sector and in government


Activity objectives

This activity aims to strengthen the capacity of Moroccan stakeholders in the key areas

of the MRP. These stakeholders include not only representatives from various

Ministries and government agencies, but also members of the PMU, industry sector

associations and operational personnel from industrial facilities. The capacity building

programme will take into account the wide range of actors and their different needs

and will be carried out in coordination with other capacity building initiatives on

mitigation.

Description of the

activity

√ Analysis of capacity building activities already carried out;

√ Preparation of a capacity building plan and a training programme;

√ Implementation of the capacity building plan.

For 2015-2017, the training programme will focus on the following technical aspects:

- MBIs;

- Technical elements specific to MBIs:

o Techniques for establishing baselines, crediting thresholds, and

mitigation targets (at both sector and national level);

o MRV approaches and methodologies;

o Operations of the IT platform on data management and MRV, and

operation of a national registry.

- Exchange of regional and international experiences;

- Participation of the PMU and other relevant stakeholders in PMR meetings and

in the knowledge sharing and capacity building programme provided by the

PMR, as well as other international events relating to carbon market

instruments, particularly those under the UNFCCC;

- Update and distribution of knowledge acquired during PMR meetings to key

actors involved in mitigation and MBIs.

Some training modules will be applicable to all stakeholders while others will be

tailored, for example:

- In the phosphates sector: internal MBI capacity building programme,


91

targeted at operational staff;

- In the electricity generation sector: support for an international benchmark

for internal structures and processes.

Emphasis will be placed on the organisation of practical, participative and interactive

sessions. This can for example take the form of tutorial sessions on the use of

software (e.g. for reporting emissions) and participation in study trips (e.g.

installations in industrialised countries with advanced MBIs). Capacity building

activities will be defined and delivered in conjunction with capacity building activities

organized for other relevant initiatives (see Table 2)

Expected

deliverable(s)

Capacity building plan

Practical and participative workshops

Meetings to exchange experiences during the piloting activities (e.g. MRV) Study trips

Tools and logistics

Reports/meetings

Estimated budget

(USD)

2015-2017: 500,000

2018-2020, initial estimate: 500,000

Responsible entity MEMEE/DPCC et PMU-PMR


Timeline: 2015-2020

5.3 Summary of proposed MRP activities

The workshops organised as part of the preparation phase of the MRP have helped to identify the

activities to be implemented under the PMR that will contribute to the preparation of a Moroccan

carbon market. The activities proposed in this Building Block are summarised in the table below.



13 Establishment and Operation of a Project Management Unit First

14 Capacity building in both the private sector and in government First


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6 Summary of activities, schedule and budget

Information on the activities outlined in the MRP is summarized in Table 16 below and Table 17 presents the funding request to the PMR.

6.1 Activities proposed in the MRP

Table 16 Summary of activities (deliverables, timeline and budget) proposed in the MRP

Activity Deliverable(s) Duration96 Start

date

End

date

Budget (USD)

1st tranche 2nd tranche

Building Block 2

Activity 1 Analysis of

appropriate mitigation

instruments and MBI

governance for Morocco

A study with a MAC curve for the national economy, analysis and

recommendations on which instruments to implement, by sector,

and a proposal for an appropriate governance framework

1 year 6

months

Q3

2015

Q4

2016 600,000

Activity 2 Mid-term review Workshops, review report, new funding request to PMR 3 months Q2

2016

Q2

2016 150,000

Building Block 3

Activity 3 Design of a MRV

system, and piloting of the MR

in the three sectors covered by

the MRP (electricity, cement and

phosphates)


Working group, meetings and discussions, and progress reports

Sub-activity group 2: Design of an institutional framework and

operational requirements for a monitoring and reporting system

(general and sector-wide)

Consultation workshops, sectoral studies to define sectoral

requirements, legislation, technical guides, templates for

monitoring and reporting, and a DOS software system for the

electricity generation sector

Sub-activity group 3: Piloting of the monitoring and reporting

system

Timeline for implementation, database with data from each sector

over a year, technical support for facilities, workshops for sharing

experiences and evaluating progress, a final workshop, interim

1 year 9

months

Q4

2015

Q2

2017

1: 100,000

2: 300,000

3:500,000

4:150,000

5:150,000

Total:

1,200,000

96 This indicates the duration of the activity but does not reflect the work needed in terms of man days.


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date

End

date

Budget (USD)


evaluation reports, and recommendations for improvements

Sub-activity group 4: Planning of a verification and

accreditation system

National and international diagnostic and recommendations

Roadmap for the development of a verification and accreditation

system or as needed, its integration in an international system

Sub-activity group 5: Planning the development of an IT

platform to manage data and MRV

Study of existing IT systems

Technical specifications for the development of an IT platform

that is adequate and affordable for Morocco

Activity 4 Design of a

verification and accreditation

system, and piloting in the three


(electricity, cement and

phosphates)


Working group, meetings and discussions, progress reports

Sub-activity group 2: Design of an institutional framework and

operational requirements (general and sector-specific)

Consultation workshops, sectoral studies to define sectoral

requirements, legislation, evaluation of Moroccan verification

capacity, and training plan for national verifiers


Timeline for implementation, technical support facilities, verifier

training, workshops for sharing experiences and evaluating

progress, a final workshop, interim evaluation reports, and

recommendations for improvements

1 year 9

months

Q2

2017

Q4

2018

1: 50,000

2: 250,000

3: 300,000

Total: 600,000

Activity 5 Design of an IT

platform for data management

and MRV, and its piloting in the

three sectors covered by the

MRP (electricity, cement and

phosphates)

Centralized IT system for data management and MRV

Pilot: submissions of monitoring and emissions reports in the IT

system, verification of emissions reports in the IT system by the

verifiers

On-line documentation

Training workshops with MdE participants, and other Ministries

and sectors, verifiers, and accreditation entities

2 years Q2

2017

Q1

2019 1,325,000

Activity 6 Preparation for

expansion of the MRV system to

other economic sectors in

Morocco

Evaluation of the MRV system pilot

Roadmap for MRV system expansion 2 years

Q3

2019

Q2

2020

Initial estimate for 3

sectors (buildings,

transport and

waste): 900,000


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date

End

date

Budget (USD)


Activity 7 Establishing a baseline

for each of the three sectors

covered by the MRP (electricity,

cement and phosphates)

For each sector: Study presenting three possible baselines, with

underlying calculation files attached

Consultation workshops

1 year Q4

2015

Q3

2016

1 sector:

130,000

Total:

390,000

Activity 8 Evaluation of

mitigation potential in the three


(electricity, cement,

phosphates)

Electricity and phosphates sectors: Benchmark studies by

consultants with special expertise in the sectors and

recommendations; workshops with representatives of the

industry, the government and the external expert consultants

Cement sector: Study by consultants with special expertise in the

cement sector, model, workshops with participants from industry,

government and specialist external consultants

1 year Q4

2015

Q3

2016 150,000

Activity 9 Design and pilot of a

national registry

Institutional, legal and regulatory framework; operational

requirements

Centralized IT system (data management, MRV and registry

functionality)

Online documentation

Workshops with participants from MdE and other Ministries and

sectors

> 1 year >Q3

2019 > 750,000

Activity 10 Support for the

establishment of a regulatory

framework for mitigation

measures in the three sectors

covered by the MRP (electricity,

cement, phosphates)

Stakeholder consultation workshops

Meetings with decision makers

Suggestions for legislative/institutional texts

2 years Q2

2015

Q1

2017 120,000

Building Block 4

Activity 11 Design of a sectoral

crediting mechanism for the

three sectors covered by the

MRP (electricity, cement and

phosphates)

Sub-activity group 1: Design of the sectoral crediting

mechanism in the three sectors covered by the MRP

A roadmap for the implementation of a sectoral crediting scheme

For each sector: A study proposing a crediting threshold, with

different timeframes, along with the assumptions used in the

study and the calculation methods and attached calculation files

Consultation workshop

Sub-activity group 2: Piloting of the sectoral crediting

mechanism in the three sectors covered by the MRP

1 year Q1

2017

Q4

2017

Design:

250,000 for the

roadmap

100,000 per sector

for the crediting

threshold

Total : 550,000

Piloting:

200,000 for each


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date

End

date

Budget (USD)


Working groups and meetings with representatives from the

government and the industry

Intermediary reports on the progress of the implementation of

the mechanism

Final report on the piloting phase, with the recommendations for

the following phases

sector

Total: 600,000

Total: 1,150,000

Activity 12 Evaluation of the

pilot crediting mechanism and

expansion of the scheme to

other sectors of the Moroccan

economy

Roadmap for the implementation of a sectoral crediting

mechanism expanded to cover other sectors

Action plan for the improvement of the established scheme in the

3 sectors

Working groups and meetings with representatives from

government and the participating sectors

Intermediate progress reports on the implementation of the

mechanism

Final report on the pilot phase, with recommendations for next

steps

> 1 year >Q1

2019

Initial estimate for

evaluation: 200,000

Initial estimate for

expansion to 3

sectors (buildings,

transport and

waste): 900,000

Total: 1,100,000

Building Block 5



Activity 13 Establishment and

Operation of a Project

Management Unit

Implementation and management of MRP activities

Support in preparing an institutional carbon market framework

for the post-MRP

Coordination with other programs and initiatives

3 years Q1

2015

Q4

2017 600,000

Activity 14 Capacity building in

both the private sector and in

government

Capacity building plan

Practical and participative workshops

Meetings to exchange experiences during the piloting activities

Study trips

Tools and logistics

Reports/minutes

6 years Q1

2015

Q4

2020 500,000 500,000

Sub-total 3,710,000 6,325,000

Total 10,035,000


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Note: The budget for the second tranche is indicative and will be refined during the implementation of the first tranche of activities. The Moroccan

government plans to request the PMR to cover part of this amount and will look for additional sources of funding to cover the rest.


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6.2 PMR funding request

The total budget of the activities to be implemented in the period 2005-2017 is USD 3,710,000. Out of this, USD 200,000 will come from the Moroccan

government, USD 510,000 from other sources of funding, and USD 3,000,000 from the PMR.

Table 17 PMR funding request

Activity Party responsible for

ensuring action Budget (USD)

Building Block 2

Activity 1 Analysis of appropriate mitigation instruments and MBI governance for

Morocco UGP-PMU 600,000

Activity 2 Mid-term review 150,00097

Building Block 3

Activity 3 Design of a MRV system, and piloting of the MR in the three sectors

covered by the MRP (electricity, cement and phosphates) UGP-PMU 1,200,000

Activity 7 Establishing a baseline for each of the three sectors covered by the

MRP (electricity, cement and phosphates) UGP-PMU 390,000

Activity 8 Evaluation of mitigation potential in the three sectors covered by the

MRP (electricity, cement, phosphates) UGP-PMU 150,000

Activity 10 Support for the establishment of a regulatory framework for

mitigation measures in the three sectors covered by the MRP (electricity, cement,

phosphates)

UGP-PMU 120,000

Building Block 5

Activity 13 Establishment and Operation of a Project Management Unit Steering Committee and

UGP-PMU 600,000

Activity 14 Capacity building in both the private sector and in government (2015

– 2018) UGP-PMU 500,000

Total 3,710,000

Sources of funding (USD)

PMR funding request 3,000,000

Moroccan government 200,000

Other98 510,000

97 Increased compared to MRP version 4 to cover the costs of the preparation of a second PMR funding request. 98 UNDP-LECB ; UNDP-TNC ; GIZ-4C ; GIZ-CDM/JI Initiative ; UNEP-FIRM


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6.3 Summary diagram

The diagram below summarizes the activities in chronological order of implementation:

Figure 19 Summary diagram of activities – in chronological order

2015 2016 2017 2018 2019 2020

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

13 Establishment and operation of a Project Management Team

14 Capacity building in both the private sector and in government

10Support for the establishment of a regulatory framework for

mitigation in the three sectors covered by the MRP

1Analysis of appropriate mitigation instruments and MBI

governance

3Design of a MRV system, and piloting of the MR in the three


7Establishing a baseline for each of the three sectors covered by

the MRP

8Evaluation of mitigation potential in the three sectors covered

by the MRP

2 Mid-term review

11Design of a sectoral crediting mechanism for the three sectors

covered by the MRP + piloting

4Design of a verification and accreditation system + piloting in

the three sectors covered by the MRP

5Design of an IT platform for data management and MRV +

piloting in the three sectors covered by the MRP

6Preparation for expansion of the MRV system to other economic

sector

12Evaluation of the pilot crediting mechanism and expansion of

the scheme to other sectors of the Moroccan economy

9 Design of a national registry + piloting

Activities part of the 1st tranche of PMR funding

Activities envisaged for a 2nd tranche of PMR funding

No

Activity…


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6.4 Risks and mitigation measures

The major inherent risks to the implementation of the MRP and the proposed mitigation measures are presented in Table 18 below

Table 18 Inherent risks to the implementation of the MRP and proposed mitigation measures

Risk Mitigation measures

General

The international demand for carbon credits remains low. There are no incentives for a country such as Morocco to establish an MBI linked to an international system.

Morocco will closely follow the international development on the carbon market (international negotiations, creation of artificial demand for instance by setting up a purchasing fund for the credits), will explore the opportunities to create a domestic demand of credits and will adjust its strategy accordingly. In addition, as explained in section 2.1.1, in Activity 1, and in Activity 2, Morocco will start by focusing its efforts on establishing the basic infrastructure, which will be useful regardless of the mitigation actions implemented, both market-based and non-market based and regardless of the demand for carbon credits. This reflection will inform the decisions to implement other policies, beyond the mitigation of climate change, for instance for pollutants or energy savings.

Specific to Morocco

The policy orientations of Morocco are changing and the development strategy of the MBIs is taking another direction.

Morocco’s reflection on MBIs started at the time of the ratification of the UNFCCC. The PMR project helps Morocco in this reflection but does not condition it. In addition, the Steering Committee of the PMR project, which led the MRP development process, will also steer the implementation of the PMR project. Different ministries are represented in the Steering Committee as well as in the Implementation and Monitoring Technical Committee. This structure will help ensure the consistency of the approach and dialogue with the PMR in case of a change of strategic direction.

Specific to Morocco

One or several of the three sectors covered by the MRP decides to no longer participate in the PMR initiative and/or is not cooperative during the implementation of the activities (for instance for baseline data sharing).

All three sectors were involved throughout the MRP development process and were significantly consulted on their expectations and willingness to participate. The proposed activities in the MRP result from these consultations. This involvement will continue during the MRP implementation phase through the participation of the sectors in the Project Implementation and Monitoring Technical Committee.

Specific to Morocco

The PMR grant only covers part of the activities for the preparation for the carbon market planned over the next 6 years.

Morocco plans to submit a second request for a PMR grant during the implementation of the activities covered by the

first grant (see Activity 2). In addition, Morocco has a diversified funding plan. For instance, the government is involved

in other international initiatives (see Table 2) and will try to optimize all synergies to fund activities.

Specific to Morocco

Establishing disbursement arrangements for the grant takes longer than expected and the start of the PMR project is delayed.

The Steering Committee of the PMR project will monitor the fiduciary aspects of the grant and will ensure that all disbursement arrangements are timely established. The PMU will include an expert in administrative and financial management, hired full time for the duration of the project. This expert will be in charge of the daily accounting and administrative tasks for the management of the project as well as of procurement procedures.

Specific to Morocco

Implementation of MRP activities is

delayed. Some activities require a higher budget than planned.

A PMU dedicated to the PMR project will be established. The PMU will be in charge of the daily management and execution of MRP activities. It will be responsible for compliance to deadlines and budget. Estimated budgets for

activities presented in the MRP were prepared in consultation with the various stakeholders and experts. Budgets will be refined at the time of preparation of the Terms of Reference of each activity. The PMU will be responsible for this process and will adjust the budget and the Terms of Reference based on the stakeholders’ needs and the total budget of the PMR grant. The PMU will also take all necessary measures in case of non-compliance to the budget and deadlines.


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8 Annexes

8.1 CDM project and PoA portfolio (October 2013, source: MdE)

37 CDM projets and PoAs, estimated emission reduction potential : 5,917,581 tCO2e/year:

17 registered projets including 3 PoAs : 2,390,193 tCO2e/year

7 projects under validation: 969,484 tCO2e/year

13 projects at different stages: 2 519 229 tCO2e/year

Name (French) Name (English) Developer Type Status

Emission

reductions

(tCO2e/y)

Projects

Parc éolien d’Essaouira 60

MW

Essaouira wind power

project

ONE Wind Registered 156 026

Production d'électricité par

les kits PV (101500 kits de

75 Wc)

Photovoltaic kits to light

up rural households in

Morocco

ONE PV Registered 38 636

Parc éolien à 10 MW à

Tétouan

Tétouan Wind Farm

Project for Lafarge

Cement Plant

LAFARGE Wind Registered 28 651

Récupération et torchage du

biogaz dans la décharge

d’Oulja

OULJA Landfill gas

recovery and flaring

AAVB Waste Registered 32 481

Valorisation de la bagasse

de la SURAC

Surac Bagasse Plant

Project

Surac/Cosum

ar

Biomass Registered 31 653

Parc éolien de Tanger (140

MW)

Tanger wind power

project

ONE Wind Registered 334 073

Parc Eolien HAOUMA (60

MW)

Haouma Wind Farm

Project, developed by

NAREVA HOLDING

NAREVA Eolien Registered 134 496

Parc Eolien AKHFENIR (100

MW)

Akhfennir Wind Farm

Project - Morocco

NAREVA Wind Registered 264 789

Utilisation de la biomasse

énergie en substitution au

gaz pour la production de

l’énergie thermique

Fuel oil to vegetable

biomass switching at

Lesieur Cristal Limited

Corporation

Lesieur

Cristal

Biomass Registered 11 061

Double extension du Parc

éolien de la cimenterie

Lafarge de Tétouan (22

MW)

Wind farm extension

project for Lafarge’s

cement plant in Tétouan

LAFARGE Wind Registered 49 848

Station d'Epuration de

Marrakech : Production

d'électricité à partir du

biogaz

Marrakesh Wastewater

Treatment Plant (WWTP)

with biogas recovery for

cogeneration

RADEEMA Waste Registered 62 488

Centrale du complexe

solaire de Ouarzazate

Ouarzazate I

Concentrated Solar Power

Project

MASEN Solar Registered 278 695

Utilisation de la biomasse

énergie en substitution au

gaz naturel pour la

production de l’énergie

thermique au niveau de

l’usine Renault Tanger

Méditerranée à Melloussa

Heat recovery and fuel

switch from natural gas

to biomass residues

implemented at Renault

Tanger Méditerranée

(RTM) plant – Melloussa,

Morocco

Renault Biomass Registered 10 468

Parc éolien Jbel Sendouq- Jbel Sendouq-Khalladi UPC Wind Registered 143 960


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Emission

reductions

(tCO2e/y)

Khalladi 120 MW (Khalladi) wind farm

project in Morocco

Captage et brûlage en

torchère de biogaz de la

nouvelle décharge de Fès

Fes New Landfill Gas

Recovery Reuse and

Flaring Project – Fes,

Morocco

ECOMED Waste Validation 102 647

Parc Eolien de Foum EL

OUED - 50 MW

Foum El Oued Wind Farm

Project - Morocco

NAREVA Wind Validation 264 180

Projet d’utilisation des

déchets d’olive comme

combustible

Use of olive oil waste as

fuel

Société

Briqueterie

Bati Chaouia

(SBBC)

Biomass Validation 41 267

Station d'Epuration

d’Agadir : Production

d'électricité à partir du

biogaz

RAMSA – Biogas recovery

and electricity generation

from M’zar Wastewater

treatment plant, Morocco

RAMSA Waste Validation 38 675

Captage et torchage ou

utilisation du boigaz de la

décharge d’Oujda

Landfill gas (LFG) capture

and flaring or utilisation

at the Oujda landfill

FEC et

Commune

Urbaine

d‘Oujda

Waste Validation 35 281

Réhabilitation, récupération

et torchage du biogaz

décharge de Mediouna

Landfill Gas Capture,

Flaring and Energy

Generation For the

Casablanca Landfill in

Médiouna

ECOMED Waste Validation

approuvé par

l’AND sous

réserve

369 605

Station d'Epuration de Fès :

traitement des boues et

récupération de biogaz et

utilisation pour la

production d'électricité

Fès Waste Water

Treatment Plant (WWTP)

with sludge treatment

and biogas recovery &

utilization for electricity

generation at Fès city,

Morocco

RADEEF Waste Validation 156 504

Parc éolien de Jbel Haouch

Ben Kreaa (Tanger) 135MW

Wind farm Jbel Haouch

Ben Kreaa (Tanger)

135MW

Compagnie

du Vent

Wind In

development

283 500

Parc éolien 200 MW région

Tanger-Tétouan

200 MW wind farm

Tanger-Tétouan region

Gia Energie Wind In

development

429 000

Programme d’éclairage

domestique par lampes à

basse consommation (LBC)-

Programme de dix millions

de lampes

Domestic lighting

programme CFL, 10

million lamps

ONE Energy

efficienc

y

In

development

500 000

Captage et valorisation du

Biogaz de la Station

d’épuration des eaux usées

de Meknès

Methane capture and

biogas production in

Meknès wastewater

treatment plant

RADEEM Waste In

development

44 200

Stations de traitement des

eaux usées de l`ONEP

ONEP’s wastewater

treatment plant

ONEP Waste In

development

26 000

Parc éolien de Laâyoune (10

MW)

Laâyoune wind farm (10

MW)

Ciments du

Maroc

Wind In

development

23 300

Captage et brûlage en

torchère de biogaz de la

décharge de Bikarana

(Agadir)

Biogas capture and

flaring in Bikarana landfill

(Agadir)

Commune

Urbaine

Agadir

Waste In

development

26 092

Parc Eolien de Taza (100

MW) Taza wind farm (100 MW)

ONE Wind In

development

240 000

Projet parc éolien Tanger 2

(150 MW)

Tanger 2 wind farm (150

MW)

ONE Wind In

development

360 000


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Emission

reductions

(tCO2e/y)

Projet Hydro El Menzel 120

MW

Hydropower plant El

Menzel 120 MW

ONE Hydro In

development

225 000

PoAs

PoA régional d’énergies

renouvelables

Premier CPA Centrale

photovoltaïque 25 MW à

Errachidia

Programme for Grid

Connected Renewable

Energy in the

Mediterranean Region

SOLERINE

Maroc Solar Registered 20 883

Programme d'activité relatif

aux projets de gestion des

déchets solides

Premier CPA – Décharge

intercommunale Oum Azza

Landfills’ gas capture,

flaring and use program

in Morocco

FEC Waste Registered 138 377

PoA éolien de l’ONE

Premier CPA : parc éolien

deTarfaya 300 MW

ONE Wind Program of

Activity, Morocco ONE Wind Registered

580 260

653608

Programme de diffusion de

chauffe eau solaire

Moroccan Solar Water

Heating Programme ADEREE Solar

Project Idea

Note 127 137


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8.2 Approaches for setting a mitigation target/objective

A sectoral MBI is based on a target or goal to reduce emissions in the sector. The MRP sectors do not

yet have sectoral GHG mitigation targets. These targets will have to be identified during the

implementation phase of MRP. There are two approaches that can be used to set targets:

Top-down approach: the target is set through negotiations with industry and other

stakeholders. This can be done either directly at the sectoral level or in relation to a national

target.

Bottom-up approach: the target is defined via the evaluation of the mitigation potential in the

sector, taking into account the feasibility of mitigation measures in the context of a given

scenario. The target can then be defined based on the total achievable mitigation potential in

the sector.

In a top-down approach, targets have the advantage of being defined without requiring good data

availability and instead through negotiations with stakeholders based on various assumptions. The

disadvantages of this approach lie in the fact that the setting of targets is often not transparent and

may be inconsistent with other policy instruments. These drawbacks are corrected by the bottom-up

approach, although this approach often takes longer and requires more data. Targets set using a

bottom-up approach consider only the identified potential within a sector, which may not be ambitious

enough to stimulate investment in new technologies. Since Morocco has no overall GHG mitigation

target, and given the availability of data in the relevant sectors, setting targets using a bottom-up

approach would be most suitable. This will allow the process to be transparent and will ensure

cooperation from the sector participants.

In most cases, both approaches are used successively. In a first step, the mitigation potentials in

different economic sectors are evaluated using a bottom-up approach with a high engagement from

the sectors. A target can be derived by summing up different mitigation potentials, the total of which,

in a second step, will become the object of a policy debate where other considerations come into play

(e.g. national competitiveness, political priorities, and international cooperation). In all cases and

regardless of the approach chosen, it is recommended to evaluate the mitigation potential, costs and

barriers to the implementation of mitigation measures, in order to determine whether targets are

feasible within the timeframes specified. In 2009, the mitigation potential and investment costs in

different sectors for 2030 were determined as part of the SNC. This, and the TNC under preparation,

provides a basis for assessing the feasibility of the proposed targets, which will be updated

accordingly with the latest mitigation options identified.

Targets can take different forms. They may be absolute, intensity-based or technology-based. An

absolute target can provide certainty on the total maximum future emissions, which can hamper

economic growth if the target is too strict. Intensity-based targets do not restrict production levels,

but give no certainty on the total amount of GHG emissions that will be mitigated. They can be

expressed per unit of energy production or per monetary unit. Technology-based targets look to

replace certain technologies with others. This limits the choice of GHG mitigation method, but makes

clear the investment costs required. However, in addition to uncertainty about the total emissions

that will be mitigated, they also impose severe restrictions on the development of new technologies

and innovation. Given the availability of data on production and potential mitigation/projections

available in the three relevant sectors, all three target types are possible.


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Time also plays a crucial role in setting a target. The target’s reference level is based on a reference

year chosen according to data availability and the target’s level of ambition. It is also possible to

choose multiple reference periods and use the average value of the target metric as the target level in

the target year. This is the year that the target should be reached. The target year not only indicates

the level of ambition, but it is also an indicator of political stability. If it is fixed as a long-term target,

it may introduce a large degree of uncertainty. If it is set too short term, it may put too much

pressure on the economy. To reduce political uncertainty, steps can be introduced with non-binding

targets. That way it can be assessed whether more direction is needed to achieve the target. Other

factors that may affect the setting of the target year include the international context, and national

strategies and plans. Given that Morocco already has target years in other policies, it would be better

to align them or at least take them into account in the crediting system.

Target setting also depends on the type of MBI in place. In a crediting system the target, or a part of

the target, can be translated into a ‘crediting threshold’, see section 4.3.

8.3 Types of mitigation instruments

Mitigation instruments can be either market-based or non-market based:

Market-based instruments allow obligated parties to meet their emissions reduction targets

in a flexible way, through the trading of emissions units priced on a supply and demand basis.

These emissions units can either be awarded following emissions reductions (e.g. a crediting

mechanism), or allocated freely (e.g. an emissions trading scheme), or bought from the

market or other parties at market price.

Non-market based instruments do not contain a trading element, so all obligated parties

would need to meet their emissions reduction objectives themselves. A financial incentive

could be introduced to reduce emissions by putting an explicit price on carbon, through a

carbon tax, for example.

In market-based carbon pricing instruments the carbon price is set by the market through the supply

and demand of emission units. The demand for emission units is driven by the emissions of the

obligated parties. This allows obligated parties to meet their emission reduction target in the most

cost-effective way, but does not provide certainty on what the carbon price will be. With other carbon

pricing instruments such as a carbon tax there is no market, so the carbon price is set by a central

authority. It provides the obligated parties a clear carbon price signal for investments to reduce GHG

emissions, but it does not provide any certainty on whether the emission reduction target will

achieved.

Further distinction can be made between two different types of MBIs:

Emissions trading systems (ETS) consist of a cap on the total emissions and a carbon price

on each emission unit, or ‘allowance’. The emission cap sets the maximum amount of

allowances allowed in the system, which can be sold into the market through auctions. To

mitigate any potential negative impacts on competitiveness, obligated parties can receive free

allowances at the start of each trading period. Participants in an ETS are allowed to trade

allowances during the whole year, and at the end of the year obligated parties need to

surrender allowances equal to their emissions during the year. The cap on the emission

allowances guarantees the emissions to remain below a certain level and safeguard the

environmental outcome of the system.


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Crediting mechanisms do not have a cap on emissions, but a crediting threshold or baseline

instead. Parties are credited emission units after they have achieved emission reductions

below this crediting baseline, but have no obligations when they emit above the baseline.

Other parties with an emission reduction target can then buy these emission credits to offset

their own emissions, for example EU ETS participants can buy CDM carbon credits. The

demand for credits is dependent on parties with emission reduction obligations or ambitions,

which generally reside in a different sector than the parties generating credits. Since the

demand is a determining factor in the carbon price, i.e. the value of a credit, the incentive to

reduce emissions and thus the environmental outcome of a crediting mechanism heavily

depends on the demand of credits induced by other emission reduction instruments.

ETSs are a closed system where the demand and supply of allowances can come from the same

actors, while actors in crediting mechanisms only supply credits and the demand comes from outside

the system. This allows an ETS and a crediting mechanism to be linked, such as with the EU ETS. A

schematic overview of the operation of an ETS and crediting mechanism is shown in Figure 20.

Figure 20 An emissions trading system and a crediting system

Other instruments to reduce emissions that do not put a price on carbon all fall under the category of

non-market based instruments. These instruments include:

Standards and regulations setting the performance limits related to GHG emissions, such as a

emission intensity standard;

Positive financial incentives such as subsidies, tax breaks and soft loans that enable

participants to overcome financial barriers to invest in GHG emissions reduction measures;

Research and development programmes that enable the development of cheaper and more

effective GHG reduction measures;

€

Allowances

Crediting baseline

Emissions

Credits awarded

Emissions cap

Emissions

Emissions Trading Scheme

Emissions cap

Allocation of

allowances

Crediting baseline

Start of trading period

End of trading period

No credits awarded

Crediting scheme


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Voluntary agreements with emitters that set a voluntary target regarding GHG emission

reductions in return for certain benefits;

Capacity building and informing emitters on GHG emission reduction options and the benefits

and potential cost savings.

GHG emission reduction policies almost always use a combination of market-based and non-market

based instruments to achieve their emission reduction target, as each instrument has their own

benefits and disadvantages. The appropriate instrument to reduce GHG emissions is therefore specific

to the sector and the local situation.


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8.4 Programmes of international MRP missions

Programme for the first mission: 15-17 May 2013

Wednesday 15 May

14:30 Focal Point Meeting Partnerships Division; Research Department, MEMEE; Budget Department, MEF; MAGG

Thursday 16 May

09:00 Mr. Omar Benlamlih ONEE, Head of Environment Division

16:00 Mr. Abdelhak Kabbabi OCP Group, Head of Environment, Sustainable Development Unit

Friday 17 May

11:30

Mr. Said Mouline Director General, ADEREE

13:30 Mrs. Naima Taghzout Agricultural Development Agency, Project Management Division, Head of External Finances Monitoring

15:00 Mr. Mohamed Benyahia Department of the Environment, Director for Partnerships, Cooperation and Communication

16:30

Mr. Abderraouf Benabbou Ministry of Energy, Mining, Water and the Environment Interim Chief of the Division for Electrical Equipment and Rural Electrification

Department head for transport and interconnections

16:30 Mrs. Sabah Benchekroun Ministry of General Affairs and Governance, Special assistant to the Head of Government

Programme for the 2nd mission: 1-5 July 2013

Date Time Activity Participants Location

Monday

01/07/13

9.30- 12.00

Meeting with the Advisory Committee

PMR Advisory Committee World Bank Consultants

MAGG Offices, Rabat

14.30-16.30

Workshop No 1: Energy efficiency in buildings sector

ADEREE Focal Point representative(s) World Bank Consultants

ADEREE Headquarters, Rabat

17.00 – 18.00

Meeting with the Division for Observation and Forecasting - MEMEE

DOP/MEMEE World Bank Consultants

MEMEE/DOP offices

Tuesday

02/07/13

10.00 – 13.00

Workshop No 2: Electricity generation sector

ONEE, Focal Point

representative(s) World Bank Consultants

ONEE / Electricity Branch Headquarters, Casablanca

Wednesday

03/07/13

11.00 – 16.30

Workshop No 3: Phosphates sector

OCP Group Focal Point representative(s) World Bank Consultants

OCP Headquarters, Casablanca

Thursday

04/07/13

10.00 – 12.30

Workshop No 4: Cement sector

APC Focal Point representative(s) World Bank Consultants

APC offices, Casablanca

15.30 – 19.30

Consultants working group meeting

Consultants ECI Office, Rabat

Friday 05/07/13

09.30 – 11.30

Progress meeting with the Focal Point

PMR Focal Point World Bank Consultants

MAGG offices, Rabat


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Programme for the 3rd Mission: 23-27 September 2013

World Bank Mission supporting the Partnership for Market Readiness

Monday 23rd September

Time Name of person responsible Department

8.30 – 9.30 Kick-off meeting

11.00 –

12.00

Mrs. Maya Aherdane

Director of Observation and

Programming

Department of Energy - MEMEE

14.00 –

15.00

Mrs. Fatiha El Mahdaoui

Head of Division of the National

Environment Observatory -

DEPP

Department of Environment - MEMEE

16.00 –

17.00

Mr. Mohamed Benyahia

Director for Partnerships,

Cooperation and

Communication

Mr. Firadi

Department of Environment - MEMEE

Head of Division – Multilateral Cooperation

Wednesday 25th September

10.00 –

12.00 Donor Meeting

14.30 –

17.00

APC workshop

Mr. Hassan Chouaouta

Environment and sustainable development expert –

APC advisor

10.00 –

12.30

OCP workshop

Mr. Abdelhak Kabbabi

Head of Environment

Sustainable Development Division -OCP Group

15.00 –

17.00

ONEE workshop Mr. Omar Benlamlih

Division Head, Environment

Friday 27th September

9.30 – 11.30

Focal Point meeting

Partnership Division; MEMEE

Budget Division, MEF

MAGG


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Partnership for Market Readiness (PMR)

Presentation workshop of the PMR Initiative to the members of the Professional

Association of Cement Producers in Morocco

Rabat – December 4 2013

AGENDA

Duration 2h30

Session Description Speaker

INTRODUCTION

Presentation of PMR and the national context of preparation to

future carbon markets -

- Presentation of Morocco’s draft proposal

- Complementarities of the various initiatives (LECB, etc.)

Deputy ministry in

charge of the

environment

Souad El Asraoui

CONTEXT

AND

INTERNATIONAL

BENCHMARKING

- Brief presentation of the international context and reminder of the concepts of NAMAs and NMMs

- International benchmarking: examples of other initiatives abroad (Tunisia-India-Indonesia)

World Bank

Abdelmourhit Lahbabi

INTEREST FOR THE

SECTOR

PROPOSED

ACTIVITIES

- Opportunities and advantages for the sector

- Proposed activities under the PMR proposal

World Bank

Abdelmourhit Lahbabi

Enviro Consulting

International

Mounir Temmam

DISCUSSION Questions/Answers - Discussion All participants


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Programme for the 4th Mission: 21-24 January 2014

Date Heure Activité Participants Lieu

Mardi

21/01/2014

9h30 – 12h30

(confirmé)

Réunion de coordination

Banque Mondiale

Ecofys/ECI

Experts Indépendants

Banque

mondiale, Rabat

14h30 – 17h30

(confirmé)

Réunion de travail avec le DPCC (Ministère délégué chargé de l’Environnement)

DPCC


Banque Mondiale

Ecofys/ECI

DPCC, Rabat

Mercredi

22/01/14

9h30 – 12h30

(confirmé)

Réunion de travail avec le DPCC (Ministère délégué chargé de l’Environnement)

DPCC


Banque Mondiale

Ecofys/ECI

DPCC, Rabat

14h30 – 17h00

(confirmé)

Atelier de travail n°1 :

Secteur cimentier

APC

Représentant(s) du Comité de Pilotage


Banque Mondiale

Ecofys/ECI

Banque

Mondiale ou

DPCC, Rabat

Jeudi

23/01/14

9h30 – 12h30

(confirmé)

Atelier de travail n°2 : Secteur production

d’électricité

ONEE



Banque Mondiale

Ecofys/ECI

ONEE (Branche

électricité),

Casablanca

14h30 – 17h30

(confirmé) Restitution interne


Banque Mondiale

Ecofys/ECI

Casablanca

Dîner Restitution interne


Banque Mondiale

Ecofys/ECI

Casablanca

Vendredi

24/01/14

09h00 – 11h30

(confirmé)

Atelier de travail n°3 :

Secteur des phosphates

Groupe OCP



Banque Mondiale

Ecofys/ECI

OCP,

Casablanca

14h30 – 17h00

(confirmé)

Restitution avec le Comité de Pilotage

Comité de Pilotage du PMR

Banque Mondiale

Ecofys/ECI

MAGG, Rabat


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Partnership for Market Readiness

Market Readiness Proposal for Morocco

اململكة املغربية

KINGDOM OF MOROCCO

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