The European Bank for Reconstruction and Development (EBRD) has signed a memorandum of understanding with the Central Bank of Morocco (Bank Al-Maghrib) and the Professional Grouping of Banks in Morocco (GPBM). This tripartite partnership aims to support climate risk management in the financial sector and climate finance.
Moroccan banks will now benefit from the expertise of the European Bank for Reconstruction and Development (EBRD) in climate and environmental risk management. This is the aim of a partnership recently signed between the Central Bank of Morocco (Bank Al-Maghrib) and the Groupement professionnel des banques du Maroc (GPBM).
The three institutions will work together to raise awareness and build the capacity of regulated stakeholders on climate and environmental risk management, as well as promoting green finance. This cooperation is mainly aimed at establishing a cooperation framework for the implementation of the Directive 5/W/21 on financial risk management issued last year by Bank Al-Maghrib.
Support for the green economy
According to the Central Bank of Morocco, the directive aims to encourage the Kingdom’s financial sector to address and manage financial risks related to climate change and the environment, and to generate new commitments from Moroccan banks to sustainable financing.
“This is an important step in bringing together the skills, resources and reach needed to help local financial institutions take climate action and contribute to the kingdom’s green transition,” said Odile Renaud-Basso, the EBRD’s president. The London-based bank in the UK is a major supporter of the development of the green economy in Morocco.
Under the Green Economy Finance Facility (GEFF), the EBRD has provided financing to the Moroccan Bank for Commerce and Industry (BMCI), Crédit Immobilier et Hôtelier (CIH Bank) and Bank of Africa, a subsidiary of the Moroccan group BMCE. These commercial banks provide loans to small and medium-sized enterprises (SMEs) that invest in green projects.
Jean Marie Takouleu