Morocco drawing up new guidelines for banks’ climate disclosures

February 12, 2024|Written by |Bank Al-Maghrib, Banco de España

Morocco’s central bank is drawing up new guidelines for banks’ climate disclosures, its governor Abdellatif Jouahri has announced, adding that the Bank Al-Maghrib (BAM) is aiming to boost its sustainable bond investments as part of a wider strategy to green its policies.

The impact of global warming is plain to see in drought-hit Morocco, Jouahri told a conference on the macroeconomic effects of climate change, which was jointly organised with Spain’s central bank, the Banco de España (BdE).

“One of the questions that arises in this context is related to the role of central banks. What is evident is that they will have to consider the impact of climate change in carrying out their missions,” Jouahri told the event in Rabat on 2 February.

“Bank Al-Maghrib is currently working on new regulatory guidelines to provide banks with guidance on the data to be collected as well as the indicators and metrics to be put in place to measure climate-related risks emanating from major borrowers, and to assess the green and sustainable portion of their portfolios.”

BAM is also working with Morocco’s finance ministry and other financial regulators on a new strategy to “make it possible to assess the green financing gap and identify measures and mechanisms to enable the national financial sector, as well as foreign financial institutions, to amplify their contribution to green and climate finance”, he said.

Jouahri said BAM was aiming to build on its investment in green bonds, which last year reached US$200mn. “Its investments in green, social and sustainable bonds currently account for 7%of foreign exchange reserves, with a long-term target of 10%,” he said.

A report last year by the London School of Economics’ Grantham Research Institute identified Morocco as a country that could play a key role in leading Africa’s transition to net zero, as an economy with both high financial resilience and transition opportunities.

Speaking alongside Jouahri, BdE governor Pablo Hernández de Cos said it was crucial that central banks contribute to the green transition, “within the scope of our mandates”.

“It is now accepted by everybody that climate change and the fight against climate change may have a significant impact on the conduct of monetary policy, and pose major risks to financial stability,” he added.

This page was last updated February 13, 2024

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