LGreen finance is experiencing real development in Morocco, even if it must be recognized that there is still significant room for improvement compared to what is being done in this area on the Old Continent. The EU wants to achieve carbon neutrality by 2050.
Clearly, achieving this objective requires the firm commitment of European banks, which are aware of their major role to play in financing the energy transition. This gives more meaning to the first edition of the Sustainable Finance Forum, organized by BMCI, a subsidiary of the French group BNP Paribas. The event, which took place in the administrative capital, allowed several French and Moroccan speakers to recall Morocco’s commitment to the climate, as evidenced by several flagship projects in renewable energies, but also to explain the financial sector’s bias towards sustainability through the consideration of environmental, social and governance (ESG) criteria.
Philippe Dumel, Chairman of the Management Board of BMCI, who recalled the potential of Morocco (9th sunniest country in the world and 31st in terms of wind energy production potential) in the field of clean energy production, let it be known that the BMCI will fully play its role in accelerating the energy transition on a national scale. The bank came in 2nd position in the Moody’s ESG Ranking, reserved for the companies most respectful of ESG criteria in emerging countries. This coronation is hardly a coincidence, since BMCI is part of the BNP Paribas group. The French bank has integrated sustainability into its strategic plan.
The banking establishment claims 25% of project financing in the renewable energy sector. According to François Benaroya, Deputy Head of International Retail Banking and Head of Mediterranean Europe at BNP Paribas, the French group has made immediate and concrete commitments. And this, within the framework of its Strategic Plan 2025. Concretely, within about 3 years, the first bank in the EU, which is also part of the Net Zero Banking Alliance will have, among other things, to grant 150 billion in euros in sustainable bank loans and totaling 250 billion euros in sustainable bonds. The strong commitment of the French establishment in favor of the climate is reflected in its Moroccan subsidiary
BMCI is resolutely determined to support its customers on the path to energy transition, which is no longer a luxury, but a necessity. And this, in view of the exacerbation of global warming and the soaring prices of fossil energy products on the world market. “Multiple technological advances and investments have contributed to improving the competitiveness of renewable energies (ENR) in our country. Today, the return on investment in the energy transition is shorter in Morocco”argues Said Mouline, CEO of the Moroccan Agency for Energy Efficiency (AMEE).
Furthermore, it is important to remember that the strengthening of BMCI’s commitment to the green economy in Morocco is reflected, among other things, in the maintenance of its partnership with the EBRD, with the key to receiving a second line of financing in the amount of 25 million euros through the GEFF Morocco financing program. The latter is dedicated to energy efficiency, renewable energies, the management of resources such as water and waste management. In the same vein, the banking establishment, which relies on the training of its human capital in order to meet the challenges related to the consideration of ESG criteria, promotes female entrepreneurship in Morocco through financing, l financial inclusion and the development of start-ups.
Beyond the concrete actions of BMCI in terms of ESG, it must be admitted that the implementation of the directive relating to the system for managing financial risks linked to climate change and the environment, enacted by Bank Al -Maghrib in March 2021, remains a market challenge. Hence the appropriateness of the signing, in May 2022, of the memorandum of understanding between Bank Al-Maghrib, the EBRD and the Professional Association of Moroccan Banks (GPBM) for the support of banks in the implementation of the aforementioned directive.