TRANSFORMING ECONOMIES: How Is the Green Transition Shaping Trade and Industrial Policies? A Focus on Morocco

Green industrial policies are essential to enable the structural transformations needed for a successful transition to a low-carbon economy. Because of the pressing need to decouple economic growth from environmental degradation, it is imperative to reallocate resources strategically from carbon-intensive sectors to sustainable, high-productivity industries. This transition is critical both to mitigate the impacts of climate change and to promote long-term economic growth and sustainability.

This paper examines Morocco’s green transition and identifies several key issues that must be addressed to ensure success. These include the need for a coherent institutional framework, the implementation of effective regulatory measures, and greater private-sector involvement. Furthermore, the analysis highlights the importance of regional collaboration, innovation, and research and development in overcoming challenges to a sustainable transition. It also analyses the European Union’s Carbon Border Adjustment Mechanism (CBAM) as a case study of how trade policies can be used to encourage decarbonization and align international trade practices with environmental objectives.