Morocco proposes carbon market rules with fines of up to 2 million dirhams

Morocco has published draft legislation for public comment that would regulate carbon trading, require authorization for international transfers of emissions reductions and impose fines ranging from 500,000 to 2 million dirhams for violations.

Bill 62.25 would establish a national carbon market registry and a climate transparency system, according to its explanatory memorandum. The proposal aims to align Morocco’s legal framework with its commitments under the Paris Agreement, including the cooperation mechanisms covered by Article 6.

The electronic registry would record proposed projects to reduce greenhouse gas emissions, their implementation authorizations and permissions to transfer emissions reductions internationally. It would also track carbon credit transfers and identify recognized validation and verification bodies.

Projects covered by the crediting mechanism would undergo administrative assessment against conditions including consistency with national climate priorities or contributions to Morocco’s climate targets. They must also respect environmental and social safeguards and preserve the country’s ability to meet its commitments.

Project implementation authorizations would last three years and be renewable. Developers would submit annual progress reports describing any difficulties and apply annually for international transfers of emissions reductions.

The bill distinguishes between cooperative approaches, a carbon crediting mechanism and voluntary carbon markets.

Verification bodies would need recognized accreditation, qualified staff, technical expertise and systems ensuring quality and independence. Recognition would last five years, subject to renewal. A body could not verify emissions reductions from a project it had previously validated.

Separately, a national climate transparency platform would track climate indicators, public spending, international support and progress toward Morocco’s nationally determined contribution.

A proposed commission bringing together public institutions and climate associations would guide and coordinate implementation.

Penalties would cover failures to file annual reports, unauthorized or noncompliant transfers, failures to report certain changes and breaches involving validation and verification bodies. The provisions remain proposals pending the legislative process.