Europe encourages green factories in Morocco, but its new rules could penalize them
A European study confirms Morocco’s potential as a green industry hub but warns of three hurdles: financing, energy infrastructure, and new EU trade rules that could disadvantage Moroccan products, including battery makers targeting European automakers.
Europe pushes Morocco towards green industry, but its own rules threaten to stall the momentum
Morocco ticks all the boxes to become a green industrial production hub on Europe’s doorstep. This is confirmed by a European study, which nevertheless warns of three major obstacles: financing, energy infrastructure and Brussels’ new trade rules. Morocco’s ambitions are real, but the road to green factories is strewn with pitfalls, some of which stem directly from European policies.
On the energy front, the picture is mixed. Renewable energies account for a significant share of installed electrical capacity, but their contribution to actual electricity generation remains modest. Moroccan industry still relies heavily on imported fossil fuels, and the electricity grid suffers from structural difficulties: complicated connections, high transmission costs and the distance between solar or wind production zones and major industrial centres. All of these are brakes for investors, particularly those in green hydrogen, who are waiting for European buyers to offer long‑term contracts. Yet the latter are hesitant, and European support mechanisms remain unclear.
The contradiction becomes clearer on the trade front. Brussels fears that companies might use Morocco to circumvent the tariffs imposed on subsidised Chinese products. As a result, the new European rules could favour components manufactured within the Union for public procurement and aid programmes, without granting the same treatment to products made in Morocco. A delicate situation, especially for battery manufacturers based in the Kingdom, whose investments are largely aimed at European car makers.
In short, Morocco is advancing along the path to green industry, encouraged by Europe which sees it as a strategic partner. But the rules of the game are changing mid‑stream, and those who have bet on the European market could find themselves caught in a squeeze.
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