Moroccan exporters are facing significant challenges in the lead-up to the European Union’s Carbon Border Adjustment Mechanism (CBAM) in 2026, which will significantly curb the import of carbon-intensive goods, local media reported.
CBAM is the world’s first carbon border tax, focused on reducing carbon emissions through plugging so-called “carbon leakages” in the supply chain. “Carbon leakages” happen when countries with lower emissions standards transfer goods, leading to an overall increase in emissions.
Initial projections suggest that CBAM could cause an 11% drop in Moroccan exports if its scope broadens in 2027-2028 to include sectors like textiles and agriculture.
On a continental scale, Africa faces an estimated 5.72% decrease in exports, with major losses expected in aluminum (-13.9%), iron and steel (-8.2%), and fertilizers (-3.9%). These declines could shrink Africa’s Gross Domestic Product (GDP) by 1.12%, amounting to approximately EUR 31 billion.
In northern Morocco, textile manufacturers have already made notable progress in decarbonization, driven largely by European partners adhering to stricter environmental standards.
However, the agro-industry faces hurdles in reducing the heavy use of pesticides and herbicides, significantly contributing to Moroccan agricultural exports’ carbon footprint.
Morocco continues to diversify its energy mix to reduce reliance on fossil fuels. Projects like the Noor Solar Plant in Ouarzazate exemplify the nation’s commitment to renewable energy and its position as a regional leader in sustainability.
As the CBAM implementation nears, Morocco must balance compliance with EU regulations and the pursuit of economic transformation, leveraging its renewable energy infrastructure and sustainable finance strategies to mitigate the risks and seize emerging opportunities.