“…Although a national ETS may seem straightforward around CBAM, it may not be appropriate in the Moroccan case [57]. In theory, an ETS achieves its objectives when the emission market is competitive, in the presence of several polluters with different measures to control their emissions and different abatement costs.…”
Section: Policy Issues and Implicationsmentioning
confidence: 99%
“…Carbon taxes stand out as attractive options for Ministries of Finance due to their simplicity and automatic revenue consolidation into the state budget. In Morocco, stakeholders exploring carbon tax options lean towards adjusting existing tax rates and coverage as a more pragmatic and efficient approach to environmental fiscal reform [57]. Berahab et al [56] proposed ways for Morocco to decarbonize its economy and discussed the complications and risks that may cripple the successful implementation of these measures, such as the loss of competitiveness and-if the additional costs yielded by fiscal reforms were to be passed on to consumers-the creation of social cleavages.…”
The ‘Fit for 55’ policy package was presented in the European Commission’s Green Deal framework, comprising a set of proposals to improve existing energy and climate legislation. Among its main proposals was a revision of the European Union’s Emission Trading System to expand its sectoral coverage. Anticipating the possible loss of competitiveness with carbon pricing within the EU—which may lead to ‘carbon leakage’—a carbon border adjustment mechanism (CBAM) was included in the package. This scheme takes the form of an export tax levied by the European Union on some goods manufactured in non-carbon-taxing countries. In this paper, we provide a first-order estimate of the potential impact of CBAM on Morocco’s exports using an input–output approach. Our main findings suggest that the scheme would yield a carbon bill ranging from USD 20 to 34 million annually to Moroccan exporters in its initial phase. Morocco can mitigate such economic losses by instituting a national Emission Trading System, a tax reform, or speeding up the decarbonization of its economy.
“…Although a national ETS may seem straightforward around CBAM, it may not be appropriate in the Moroccan case [57]. In theory, an ETS achieves its objectives when the emission market is competitive, in the presence of several polluters with different measures to control their emissions and different abatement costs.…”
Section: Policy Issues and Implicationsmentioning
confidence: 99%
“…Carbon taxes stand out as attractive options for Ministries of Finance due to their simplicity and automatic revenue consolidation into the state budget. In Morocco, stakeholders exploring carbon tax options lean towards adjusting existing tax rates and coverage as a more pragmatic and efficient approach to environmental fiscal reform [57]. Berahab et al [56] proposed ways for Morocco to decarbonize its economy and discussed the complications and risks that may cripple the successful implementation of these measures, such as the loss of competitiveness and-if the additional costs yielded by fiscal reforms were to be passed on to consumers-the creation of social cleavages.…”
The ‘Fit for 55’ policy package was presented in the European Commission’s Green Deal framework, comprising a set of proposals to improve existing energy and climate legislation. Among its main proposals was a revision of the European Union’s Emission Trading System to expand its sectoral coverage. Anticipating the possible loss of competitiveness with carbon pricing within the EU—which may lead to ‘carbon leakage’—a carbon border adjustment mechanism (CBAM) was included in the package. This scheme takes the form of an export tax levied by the European Union on some goods manufactured in non-carbon-taxing countries. In this paper, we provide a first-order estimate of the potential impact of CBAM on Morocco’s exports using an input–output approach. Our main findings suggest that the scheme would yield a carbon bill ranging from USD 20 to 34 million annually to Moroccan exporters in its initial phase. Morocco can mitigate such economic losses by instituting a national Emission Trading System, a tax reform, or speeding up the decarbonization of its economy.
“…Meeting the ambitious targets set by Morocco will require heavy investments, a fundamental condition is to have legal framework encouraging private actors to invest. A study has been conducted by the world bank group in 2019 (Peszko et al, 2019) to explore potential options for implementing an environmental fiscal reform, such as implementing Carbon or environmental taxes on CO 2 emissions.…”
Section: Legislative Context Of the New Energy Transition Ambitionmentioning
Morocco, as many other countries in North Africa, is becoming vulnerable to climate change consequences. Its sulfur dioxide (SO 2 ) and carbon dioxide (CO 2 ) emissions are relatively high due to the electricity production, this sector is still heavily relying on coal. Morocco is also an emerging country, aiming to raise its economic development indicators and pursue a sustainable energy approach, facing additional challenges with industrial development and many coal infrastructures already in place. For the country, renewable energy is considered the most efficient pathway to decarbonize the electricity sector and reduce CO 2 emissions. The main goal is to meet the growing need for electricity while preserving the environment. This study investigates the electricity sector in Morocco and its production sources, it highlights the limitations of the current model and gives an opportunity analysis to meet the carbon neutrality target. This study also provides some development axes and recommendations to accelerate and support the new energy vision.
The effort to address climate change cuts across a wide range of non-environmental actors and policy areas, including international economic institutions such as the Group of 20 (G20), International Monetary Fund (IMF), and the Organisation for Economic Co-operation and Development (OECD). These institutions tend to address climate change not so much as an environmental issue, but as an economic one, a dynamic referred to as 'economisation'. Such economisation can have profound consequences for how environmental problems are addressed. This book explores how the G20, IMF and OECD have addressed climate finance and fossil fuel subsidies, what factors have shaped their specific approaches and the consequences of this economisation of climate change. Focusing on the international level, it is a valuable resource for graduate students, researchers and policymakers in the fields of politics, political economy and environmental policy. This title is also available as Open Access on Cambridge
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