AIIB Signs USD200 Million Financing for First Project in Morocco to Advance National Climate Goals

The Asian Infrastructure Investment Bank (AIIB or “the Bank”) approved USD200 million in sovereign-backed financing for the Morocco Climate Operation – Support to the Nationally Determined Contribution (NDC) Program, marking the Bank’s first sovereign-backed operation in the Kingdom of Morocco. Cofinanced with the World Bank, the project will help the Government of Morocco implement its updated NDC 3.0 (2025) by accelerating climate mitigation and strengthening adaptation, resilience and nature-based solutions in vulnerable ecosystems and communities.

Morocco faces significant climate risks, including prolonged drought, severe water scarcity, desertification and frequent extreme weather events such as floods. These trends threaten urban and agricultural livelihoods, food security, and reduce natural capital. Climate impacts are particularly acute in rural, oasis and arid regions, where ecosystems such as palm groves and argan landscapes play a critical role in water regulation, carbon sequestration and protection against land degradation.

The Government of Morocco has adopted an ambitious climate agenda under its National Climate Plan and updated NDC, which targets a 53% reduction in greenhouse gas emissions by 2035 and places nature-based solutions at the center of its climate strategy. Guided by the World Bank’s Country Climate and Development Report, Morocco has designed a coordinated, whole-of-government program to convert these commitments into results-driven actions.

The Morocco Climate Operation – Support to the NDC Program facilitates practical investments that turn climate objectives into measurable outcomes. Planned actions include expanding Morocco’s climate observation systems through new weather radars to improve early warnings for floods, heatwaves and drought; restoring traditional, gravity-fed irrigation systems like khettaras and seguias that sustain oasis agriculture without energy use; and rehabilitating degraded lands through large-scale planting of climate-resilient species such as argan, olive, carob, cactus and almond. The project is supported by the World Bank’s USD350 million Program-for-Results financing, effective since January 2024, with AIIB’s Results-based Financing complementing and scaling these efforts through 2029.

“This operation reflects the strength of Morocco’s climate commitment and the value of coordinated multilateral support,” said Konstantin Limitovskiy, Chief Investment Officer, Public Sector (Region 2) & Project and Corporate Finance (Global) Clients, AIIB. “By partnering with the Government of Morocco and the World Bank, AIIB is helping translate national climate commitments into concrete, results-based actions that deliver both mitigation and adaptation benefits on the ground.”

“The program as a major step in strengthening the country’s climate finance framework, will enable concrete investments that enhance climate resilience, protect strategic ecosystems and support vulnerable communities, while ensuring strong coordination across government institutions,” said Youssef Farhat, Deputy Director at Morocco’s Ministry of Economy and Finance (MEF). “This first sovereign-backed operation with AIIB represents a significant milestone for Morocco, as it aligns international climate finance with our national priorities under the updated NDC.”

The project will also strengthen local agricultural value chains by supporting cooperatives and processing units that reduce post-harvest losses, create jobs and lower emissions through better use of agricultural byproducts. Collectively, these ecosystem-based interventions enhance carbon sequestration, secure water resources, protect biodiversity, and improve rural livelihoods.

As AIIB’s first project in Morocco, the financing lays the foundation for a long-term partnership with the Government of Morocco. It demonstrates how results-based financing, anchored in strong systems, robust monitoring and evaluation frameworks and sound public expenditure management, can deliver measurable climate outcomes at scale.

By supporting a whole-of-government approach, AIIB aims to help Morocco advance its climate goals while generating replicable solutions that can inform climate and development efforts across other Members facing similar challenges.

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About AIIB

The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.