Morocco coal power phase-out hinges on global finance

Morocco coal power

Morocco coal power phase-out plans now sit at the center of the country’s new 2035 climate strategy. The Morocco coal power phase-out commitment targets an exit from coal by 2040, but only if international partners provide large-scale financial and technical support. Without that backing, the Morocco coal power phase-out will slip into the 2040s, despite Rabat’s pledge to halt new coal plant plans.

Coal-heavy power system faces a managed transition

Morocco coal power phase-out ambitions collide with a power mix still dominated by imported coal. Coal supplied 29.2pc of Morocco’s energy and 62.2pc of its power in 2023, making the system highly exposed to fuel markets. Coal also generated 42pc of CO₂ emissions from fuel combustion in 2022, underscoring the climate stakes of any delay.

However, Moroccan utilities continue to sign long-term coal contracts while European buyers move away from such deals. This reflects the reality of a still coal-centric system that must guarantee baseload power as renewables scale. Under its new nationally determined contribution, Morocco targets a 53pc cut in greenhouse gas emissions by 2035 versus a business-as-usual path.

Meanwhile, Rabat has pledged to triple renewable capacity to more than 15GW by 2030 and expand grids and storage. These investments align domestic plans with the global Cop28 call to triple renewables. As a result, renewables growth and Morocco coal power phase-out measures are designed to move in parallel, reinforcing energy security while cutting emissions.

Financing drives timelines for coal, phosphates and methane cuts

Morocco’s new climate plan makes clear that money will decide how fast the transition happens. Around 31pc of the planned emissions reductions depend on external finance, including early coal closures and grid upgrades. The Morocco coal power phase-out therefore competes for capital with other decarbonisation priorities across industry and infrastructure.

The phosphate sector, a core pillar of Morocco’s export economy, is expected to deliver 8.35mn t of CO₂-equivalent cuts by 2035. Some of these projects will only proceed if concessional finance becomes available, highlighting the link between industrial decarbonisation and global climate funds. At the same time, Morocco has pledged deep methane reductions in agriculture and waste by 2030 and 2050, adding further investment needs.

Overall, Morocco estimates it will require around $96bn to fund mitigation and adaptation measures through 2035. Therefore, the Morocco coal power phase-out, industrial upgrades and resilience projects will all hinge on how quickly concessional and private capital flows. For international partners, the plan offers a clear pipeline of projects tied directly to measurable climate outcomes.

The Metalnomist Commentary

Morocco is signalling that coal exit timelines are now a negotiable outcome of global climate finance, not a fixed promise. For investors, the country’s combination of large phosphate reserves, ambitious renewables targets and conditional coal phase-out creates a structured opportunity set. How quickly these commitments move from paper to projects will depend on whether climate funds can match the $96bn price tag.