Morocco has set a 2040 deadline to phase out coal-fired power generation, tying the timeline to the availability of international climate finance in a move that could reshape Africa’s energy landscape. Announced in October 2025 under the Powering Past Coal Alliance, the pledge positions the North African nation at the forefront of the continent’s clean energy transition, one that balances environmental ambition with economic pragmatism.
With coal still providing nearly 60 percent of its electricity last year, Morocco’s commitment underscores both the urgency and complexity of weaning developing economies off fossil fuels amid global calls for a just and equitable transition.
The Moroccan government’s decision to halt new coal plant development signals a strategic realignment rather than a symbolic gesture. In 2024, coal accounted for 59.3 percent of Morocco’s electricity generation, down from 70 percent in 2022, a decline driven by the steady commissioning of solar and wind projects.
The Ministry of Energy has set an ambitious goal to raise renewable capacity to 52 percent by 2030, up from about 45 percent today. Achieving this will require roughly 15 gigawatts of new capacity within the next five years, backed by more than 120 billion Moroccan dirhams (about US$13 billion) in planned investment by the national utility, ONEE.
At the heart of this pivot lies the recognition that Morocco’s energy mix, still dominated by imported coal, is economically and environmentally unsustainable. The kingdom imports nearly all of its coal, leaving it exposed to volatile global prices and supply disruptions.
By accelerating renewable deployment, anchored by projects such as the Noor Ouarzazate Solar Complex, the Tarfaya wind farm, and upcoming hybrid solar-hydrogen projects, Morocco seeks to strengthen its energy sovereignty while lowering emissions. The energy minister, speaking through the Powering Past Coal Alliance, described the plan as “a forward-looking commitment to balance energy security, affordability, and sustainability.”
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However, Morocco’s 2040 coal exit is not a unilateral act of green ambition; it is a calculated negotiation with global finance. The government has explicitly linked the coal phase-out to the availability of concessional international finance and just-transition support. The cost of early plant retirements, reconfigured power contracts, and social compensation packages is substantial.
In regions such as Jerada and Safi, communities long dependent on coal mining and generation, the social dimension of the transition will be decisive. Without international support, Morocco risks stranding assets and displacing workers before alternative livelihoods or local industries are ready to absorb them.
Rachid Ennassiri, director of the climate policy think tank Imal, notes that the country’s timeline “signals intent to manage early plant retirements, contractual reforms, and a just transition backed by accessible international climate finance.”
Morocco is seeking to tap mechanisms such as the Climate Investment Funds and Just Energy Transition Partnerships (JETPs), frameworks that have already mobilized billions for South Africa, Indonesia, and Vietnam. The challenge is translating such partnerships into flexible, country-specific models that reflect Morocco’s mix of imported energy, growing industrial demand, and export-oriented green projects.
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For Africa, the Moroccan case provides a live laboratory of how emerging economies might sequence fossil fuel exit strategies without sacrificing development. South Africa, which still relies on coal for over 80 percent of its electricity, has pledged a US$8.5 billion JETP with international partners, yet faces delays in disbursing funds and resistance from communities tied to coal jobs.
Nigeria, meanwhile, leans heavily on natural gas for power, three-quarters of its generation mix according to recent International Energy Agency data, but continues to grapple with chronic outages and low grid access. Morocco’s integrated approach, combining gas as a transitional baseload, aggressive renewable expansion, and a bid for climate-linked concessional finance, offers a third pathway.
The numbers tell the regional story. Africa’s total electricity generation mix remains dominated by fossil fuels: gas contributes about 42 percent, coal 25 percent, oil 12 percent, while renewables, including hydro, contribute the rest. Yet renewable potential is vast. The continent holds 60 percent of the world’s best solar resources, according to the United Nations Economic Commission for Africa, but accounts for less than 1 percent of global solar capacity installed.
Morocco’s progress could therefore serve as a reference point, demonstrating how political commitment, investment frameworks, and international cooperation can align to unlock clean capacity at scale.
Morocco’s transition also carries implications for regional energy markets. The country’s plan to expand liquefied natural gas (LNG) import infrastructure and build renewable export corridors could reshape Maghreb and Mediterranean trade. Already interconnected with Spain and planning new links to West Africa, Morocco could emerge as a renewable exporter and green hydrogen hub. Such developments align with Europe’s decarbonization trajectory while positioning Morocco as an anchor in Africa’s green industrialization narrative.
The practical obstacles, however, are formidable. Financing remains the linchpin. The World Bank estimates that Africa needs at least US$100 billion annually through 2030 for clean energy investments, yet current inflows average less than a fifth of that. Morocco’s reliance on concessional finance acknowledges that market-based capital alone cannot bear the full cost of transformation.
The risk, analysts warn, is that without rapid progress in reforming climate finance systems, simplifying access, lowering borrowing costs, and sharing risk equitably, countries like Morocco will find their transition timelines politically and economically untenable.
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Morocco’s conditional coal exit reframes Africa’s energy debate from one of aspiration to execution. It demonstrates that phase-out targets can coexist with pragmatic energy security planning if matched by credible finance and governance frameworks.
The coming decade will test not just Morocco’s resolve but the willingness of global financial institutions to recognize the continent’s energy transition as both a climate imperative and a development priority.
