The Asian Infrastructure Investment Bank (AIIB or “the Bank”) has approved USD 200 million in sovereign-backed financing for the Morocco Climate Operation – Support to the Nationally Determined Contribution (NDC) Program, marking the Bank’s first sovereign-backed operation in the Kingdom of Morocco. Cofinanced with the World Bank, the project will support the Government of Morocco in implementing its updated NDC 3.0 (2025) by accelerating climate mitigation efforts and strengthening adaptation, resilience and nature-based solutions in vulnerable ecosystems and communities.
Morocco faces significant climate risks, including prolonged droughts, severe water scarcity, desertification and an increasing frequency of extreme weather events such as floods. These challenges threaten urban and agricultural livelihoods, undermine food security and contribute to the degradation of natural capital. Climate impacts are particularly acute in rural, oasis and arid regions, where ecosystems such as palm groves and argan landscapes play a critical role in water regulation, carbon sequestration and protection against land degradation.
In response, the Government of Morocco has adopted an ambitious climate agenda under its National Climate Plan and updated NDC, targeting a 53% reduction in greenhouse gas emissions by 2035. Nature-based solutions are placed at the core of this strategy. Guided by the World Bank’s Country Climate and Development Report, Morocco has designed a coordinated, whole-of-government program to translate these commitments into concrete, results-driven actions.
The Morocco Climate Operation – Support to the NDC Program facilitates practical investments aimed at converting climate objectives into measurable outcomes. Planned actions include the expansion of national climate observation systems through the installation of new weather radars to enhance early warning systems for floods, heatwaves and droughts; the restoration of traditional gravity-fed irrigation systems, such as khettaras and seguias, which support energy-efficient oasis agriculture; and the rehabilitation of degraded land through large-scale planting of climate-resilient species including argan, olive, carob, cactus and almond.
The project builds on the World Bank’s USD 350 million Program-for-Results financing, effective since January 2024, with AIIB’s results-based financing complementing and scaling up these efforts through 2029.
“This operation reflects the strength of Morocco’s climate commitment and the value of coordinated multilateral support,” said Konstantin Limitovskiy, Chief Investment Officer, Public Sector (Region 2) & Project and Corporate Finance (Global) Clients at AIIB. “By partnering with the Government of Morocco and the World Bank, AIIB is helping translate national climate commitments into concrete, results-based actions that deliver both mitigation and adaptation benefits on the ground.”
“The program represents a major step in strengthening Morocco’s climate finance framework,” said Youssef Farhat, Deputy Director at Morocco’s Ministry of Economy and Finance (MEF). “It will enable concrete investments that enhance climate resilience, protect strategic ecosystems and support vulnerable communities, while ensuring strong coordination across government institutions. This first sovereign-backed operation with AIIB marks a significant milestone for Morocco by aligning international climate finance with our national priorities under the updated NDC.”
In addition, the project will strengthen local agricultural value chains by supporting cooperatives and processing units, reducing post-harvest losses, creating jobs and lowering emissions through improved use of agricultural byproducts. Collectively, these ecosystem-based interventions will enhance carbon sequestration, secure water resources, protect biodiversity and improve rural livelihoods.
As AIIB’s first project in Morocco, the financing lays the foundation for a long-term partnership with the Government. It demonstrates how results-based financing—anchored in strong systems, robust monitoring and evaluation frameworks, and sound public expenditure management—can deliver measurable climate outcomes at scale.
By supporting a whole-of-government approach, AIIB aims to help Morocco advance its climate goals while generating replicable solutions that can inform climate and development efforts across other Members facing similar challenges.
