Residential buildings account for about 25% of Morocco’s final energy consumption. Two factors are at play here: the buildings themselves (2/3 of the building stock of 2050 is yet to be constructed) and the appliances used by the buildings’ occupants (household electricity consumption increased by 6% annually from 2007 to 2016). A transformation to low carbon development through energy efficient new buildings and energy efficient new appliances will avoid long-term lock-ins.
There are four main obstacles to a transformation: (1) higher up-front costs of energy efficient buildings and appliances, (2) lack of access to financial products for energy efficient buildings and appliances, (3) lack of awareness along the value chain (real estate developers, financial institutions, retailers, households) and (4) lack of technical standards to support implementation of existing framework laws.
This NSP will provide both funding (FC component) and advisory support (TC component). The FC component will establish a fund to compensate for the higher cost of energy efficient buildings and appliances, thus making these as attractive for customers as regular, inefficient buildings and appliances. NAMA Facility funds will be channelled through the public housing developer Al Omrane (for buildings) and through retailers (for equipment). The TC component will support the improvement of existing laws and regulations and will also help to improve enforcement. In addition, trainings will be provided for stakeholders along the value chain (project developers, construction companies, municipalities, households) and awareness about energy efficient buildings and appliances will be raised.
The NSP will leverage substantial public and private funds and will contribute to the implementation of Morocco’s ambitious NDCs. Both low- and middle-income households are to be targeted. Approximately 160,000 tonnes of CO2 will be mitigated over the five-year duration of the NSP. Given that the lifespan of buildings and appliances is longer than five years, overall mitigation will likely be roughly 955,000 tonnes of CO2.