Casablanca to become leading hub for carbon markets in Africa with “Green Assets Cluster”

Casablanca Finance City Authority (CFCA) has launched the “Green Assets Cluster”,a strategic move seeking to position the city as a leading hub for carbon markets in Africa.

The announcement of this landmark initiative was made Tuesday by CFCA Director General Saïd Ibrahimi during a conference held in Casablanca on “Scaling up carbon market in Africa: Shaping fair and effective markets”. The event was marked by the presence of Minister for Energy Transition & Sustainable Development,Leila Benali,and EU Ambassador to Morocco,Patricia Llombart Cussac.

A carbon market is a specialized type of financial market. Carbon markets facilitate the purchase and sale of carbon credits. Carbon credits are essentially permits that allow the purchaser to emit a certain amount of carbon dioxide or other greenhouse gases. Some carbon markets are run and regulated by governments or international bodies,with certain industries required to participate,while others are entirely voluntary.

Carbon markets attempt to reduce greenhouse gases by issuing carbon credits that can be bought and sold. Many nations and groups now have carbon markets,which are commonly known as compliance or mandatory markets. Businesses and individuals can purchase carbon credits or offsets through voluntary markets.

“Our ambition is to make CFC a reference platform for the carbon economy Africa,creating new growth segments in line with the climate agenda and African potential,” said Mr. Ibrahimi,affirming that CFC looks forward to becoming a leading African place that connects,structures and gives a common voice to African players on major global issues.

“I’m convinced that through collective initiatives of this kind,Africa will be able to make its voice heard,not only in carbon markets,but in global climate governance”,he underlined

The Green Assets Cluster” aligns with Morocco’s sustainable development goals,supporting a carbon-efficient ecosystem and global decarbonization efforts.

For his part,Khalid Safir,Director General of Caisse de Dépôt et de Gestion (CDG),stressed the great potential of voluntary carbon market offering strategic financing tool for climate transition,targeting sectors like sustainable agriculture,reforestation,and energy transition.

In September 2024,CFCA and CDG joined efforts to establish a regional voluntary carbon market,reinforcing Morocco’s ambition of taking leadership in sustainable finance across the continent.