Oil and gas companies get a ton of subsidies from governments which holds back the adoption of renewable energy. In most countries, the gas industry is supported by policies encourage car use and other related infrastructure decisions. Sometimes, like in Morocco, fuel is directly subsidized and recently the country found that it was just too expensive to augment the market so bluntly.
Morocco should be held up as a â€˜poster childâ€™ for effective green policymaking, according to the World Bankâ€™s top climate official.
Speaking at an environmental meeting in Pori, Finland, Rachel Kyte said the Rabat governmentâ€™s recent decision to cut tax breaks for petrol and gas used a template other developing nations could follow.
â€œWhat Morocco did was remove subsidies on fossil fuels, because they couldnâ€™t afford it, not because they had a big climate goal, but because they couldnâ€™t afford the subsidies,â€ she said.
â€œThen they started to incentivise investments in renewable energy, domestic and foreign.â€