Rabat – A new report from Greenpeace MENA and the MENAFem Movement for Economic, Development, and Ecological Justice has raised concerns about European investments in Morocco and Egypt’s energy and agriculture sectors. It warns that they may be exacerbating environmental and social harm rather than fostering true development.
Titled “Beyond Extractivism: Towards a Feminist and Just Economic Transition in Morocco and Egypt,” the report argues that these investments often reinforce “extractivist practices” where resources are extracted and exported to the Global North with minimal benefits to local economies.
“Rather than fostering sustainable development, these investments drain natural resources and exacerbate environmental degradation in the host countries,” reads the report.
Noting that the prevailing narrative suggests these investments bring mutual gains, the report challenges this notion and instead says that the current model primarily serves European energy needs and corporate interests. Meanwhile, countries like Morocco and Egypt bear the environmental and social costs, it laments.
The reports says that Morocco and Egypt have long depended on exporting natural resources and agricultural goods. According to many experts, this has often been at the cost of their fragile ecosystems. For instance, the report explains that water-intensive cash crops like tomatoes and citrus, which are grown primarily for export, are worsening water scarcity.
The report comes as Morocco is experiencing its seventh consecutive year of drought, a crisis that has deeply affected the country and several of its key sectors.
Just this week, King Mohammed VI urged Moroccans to refrain from performing the rite of sacrifice during Eid Al Adha, citing severe economic and social hardship caused by drought. The severe crisis has notably led to a significant fall in livestock numbers and a surge in meat prices.
Meanwhile, the report warns that oil and gas projects have continued to degrade land and disrupt biodiversity in Egypt.
Greenpeace specifically criticized Europe’s push for renewable energy projects in North Africa, particularly green hydrogen, arguing that these initiatives are “more about securing Europe’s energy needs than genuinely supporting sustainable development and a just transition in the Global South.”
This raises a great concern: Are these projects truly benefiting local populations, or are they just another form of economic dependency? The report has questioned.
‘Extractivist’ model?
The report argued that European investments in the two country’s oil, gas, renewable energy, green hydrogen, and agriculture sectors are “reinforcing harmful extractivist relations by extracting resources to the Global North, with little value added to Global South economies.”
Several observers took issue with the report’s characterization of Morocco’s economic model as “extractivist,” arguing that while Morocco does rely on resource exports, it has also made strides in renewable energy and infrastructure development.
The North African country has made significant progress in renewable energy with large-scale solar and wind projects aiming to reduce fossil fuel imports and lower emissions.
For instance, the Noor Solar Complex in Ouarzazate, one of the largest in the world, is a cornerstone of the country’s ambitious goal to generate 52% of its energy from renewable sources by 2030.
In addition, the Tarfaya Wind Farm, along with other wind energy projects along Morocco’s coastline, aims to harness the country’s strong winds.
Critics believe the report’s framing oversimplifies a complex situation, arguing that Morocco operates under its own sovereign framework and has invested heavily in its economy, including in green energy projects to reduce reliance on fossil fuels.
King Mohammed VI has repeatedly recalled the importance of renewable energy projects and their contribution to the country’s energy development.
During a speech in July 2023, the monarch spoke about OCP Group’s Green Investment Program and its contribution to the country’s renewable energy development plan.
“I invite the government to speed up the implementation of this project, to make sure the requirements of quality are observed, to leverage our country’s significant potential in this regard, and to meet the expectations of leading global investors in this promising field,” the King said.