{"id":2025,"date":"2021-10-31T19:25:13","date_gmt":"2021-10-31T19:25:13","guid":{"rendered":"http:\/\/wordpress.test\/decarbonizing-economy-view-south\/"},"modified":"2023-04-19T07:13:01","modified_gmt":"2023-04-19T07:13:01","slug":"decarbonizing-economy-view-south","status":"publish","type":"post","link":"https:\/\/globaldev.blog\/decarbonizing-economy-view-south\/","title":{"rendered":"Decarbonizing the economy: a view from the South"},"content":{"rendered":"

How can the world achieve higher levels of decarbonization without compromising economic development? This column explores the case of Morocco, a developing country committed to contributing to the global effort against climate change. Assessment of possible decarbonization pathways suggests that particular attention should be paid to expanded penetration of renewable energy to meet future electricity demand. Financial and non-financial incentives will be needed to reduce the economic cost of the transition.<\/em><\/strong><\/p>\n

The climate crisis is a latent threat that has been brewing for several years. Its consequences affect both individuals and economies. Tackling climate change is the 13th Sustainable Development Goal. As such, many governments committed to take action to address it in the Paris Agreement. But a recent report of the United Nations (UN) Intergovernmental Panel on Climate Change (IPCC)<\/a> shows that achievements have not lived up to the promises made.<\/p>\n

This underscores the urgency of accelerating the pace of global containment of carbon emissions. Countries now face a dual challenge in a worldwide environment punctuated by frequent crises: ensuring economic development and preserving the environment. In this sense, the energy transition can be a crucial element.<\/p>\n

Evidence from Morocco<\/strong><\/p>\n

The latest census<\/a> of greenhouse gas emissions in Morocco shows that they are following an upward trend. They increased by 17% between 2000 and 2016, reaching 86,128 gigagrams of carbon dioxide equivalent in 2016. The energy industry \u2013 which consists of electricity and heat production, as well as oil refining \u2013 is responsible for 26% of the country’s emissions, followed by agriculture (23%) and transport (20%).<\/p>\n

Morocco accounts for about 0.2% of global emissions. But its emissions levels are likely to increase over the next few decades, given the country’s continued economic development and demographic growth.<\/p>\n

To combat climate change, Morocco submitted its revised<\/a> \u2018nationally determined contribution\u2019 (NDC) to the UN Framework Convention on Climate Change in June 2021. In its new NDC, the country set an ambitious target of a 45.5% reduction in emissions instead of 42% compared with the ‘business-as-usual’ scenario by 2030, including an unconditional target of an 18.3% reduction instead of 17%. In addition, Morocco aims to increase supply security by reducing dependence on energy imports and increasing the use of renewable energy in electricity generation.<\/p>\n

According to a recent study<\/a>, Morocco can achieve its decarbonization goals through extensive electrification of end-use sectors and increased use of renewable energy in the electricity generation mix. In particular, transport, power generation, and, to a lesser extent, residential sectors are all vital sectors for decarbonizing energy consumption.<\/p>\n

Economic modeling conducted as part of the same study shows that Morocco can achieve national emissions reductions of the order of 40% and 70% relative to a business-as-usual scenario in a cost-effective manner by 2030 and 2050, respectively. But it should be noted that these calculations are for energy-related greenhouse gas emissions only, excluding land use, land use change, and forestry.<\/p>\n

Greater demand for power<\/strong><\/p>\n

Electricity generation<\/a> in Morocco is dominated by thermal sources, mainly coal, followed by oil and natural gas, all three accounting for 80% of the country’s total electricity generation. But this share has experienced a downward trend since the 1990s with increased use of renewable energy.<\/p>\n

The renewable sources of solar, wind, and hydro accounted for 19% of the electricity generated in 2020 compared with 15% in 1990 (hydro only). As for nuclear power, Morocco does not currently foresee it playing a significant role in the energy mix of the future due to the high costs and extended period of infrastructure construction, as well as the potential environmental risks.<\/p>\n

According to the aforementioned study<\/a>, the electrification of Morocco’s end-use sectors will increase electricity demand. In the context of decarbonization, this demand must be met primarily by renewable energy, which would imply reducing the share of coal in the electricity mix.<\/p>\n

But the low production costs of fossil fuels, which have a low marginal price, can affect the profitability of renewable energy projects. Furthermore, the additional renewable electricity capacity injected into the grid can pose new challenges related to grid management.<\/p>\n

This means that adequate grid development and increased system flexibility<\/a> are required. A diverse portfolio of technologies such as Battery Energy Storage Systems (BESS), demand response, pumped hydro storage, and biomass plants can provide such flexibility.<\/p>\n

A clear and supportive regulatory framework is needed to enable participation in the renewable energy market and to sustain the development of BESS and other system flexibility tools. Moreover, according to a recent report<\/a>, concessional and blended financing can also be used to unlock private investment for clean electricity.<\/p>\n

Electrifying the transport sector<\/strong><\/p>\n

Reducing the transport sector’s carbon footprint is a critical issue in the fight against climate change, given its dependence on fossil fuels and its contribution to emissions. Electric mobility is seen as a promising solution for the low-carbon transition of this sector.<\/p>\n

Research<\/a> shows that several barriers hinder the technology switch from fossil-fueled mobility to electric mobility:<\/p>\n