Textiles
Morocco has some of the highest valued textile exports on the African continent, and many major brands source from Morocco including Zara, Primark, H&M, Walmart and Tesco. Small and medium-sized enterprises (SMEs) are also important actors in the textiles sector and make up a significant share of the workforce. The government sees the sector as important for investment and job creation. In 2019, the textile and apparel industry employed around 195,000 people. This fell due to the outbreak of the COVID-19 pandemic in 2020, disproportionately impacting women who were traditionally employed in this industry. Most of Morocco’s water footprint from textiles is from manufacturing, and the resulting wastewater causes pollution.
The Moroccan case also shows how a mix of national regulation and assistance from importing markets can improve industrial water use. Data on pollution levels from the textile industry is limited, but a UN Economic Commission for Europe report from 2014 suggested that textiles and leather generated around 42 per cent of pollution in the Tangier-Tetouan region. In 2017, the government adopted standards for water quality and implemented limits on liquid discharges for industries including textiles. This has forced companies to reduce pollution and in at least one case, led to a factory installing its own wastewater treatment plant. The European Commission supported the latter under the Ligne Bleue, a programme to support wastewater treatment projects for water intensive industries in Morocco, and the plant received EU development bank financing. Overall, Morocco increased the proportion of treated wastewater from 25 per cent in 2016 to 45 per cent in 2022.
Agriculture
The Green Morocco Plan (2008) promoted the country’s agricultural exports and expanded drip irrigation systems. However, research suggests that while drip irrigation improved agricultural productivity and revenues, it may have increased pressure on water. This is because farmers switched to grow higher-value (and more water-intensive) products such as tomatoes and cucumbers. The needs of agriculture and energy have driven deforestation, although some studies suggest more deforestation is due to subsistence agriculture.
The number of those employed in the agricultural sector has increased in recent years, with fishing and forestry together employing 45 per cent of the sector’s workers. The agricultural sector is even more important in rural areas, where agriculture accounts for around 75 per cent of jobs. As a result, droughts can have significant impacts on crops and GDP. The country continues to promote the agricultural sector, and a new agricultural plan for 2020–30 called Generation Green aims to double exports by 2030. High-value exports such as avocados, watermelons and citrus were initially given special subsidies under this plan, but these have been removed in part due to tensions around water scarcity. As the pressure on water resources from agriculture increases, some studies show that groundwater in certain coastal aquifers is already inadequate for irrigation due to nitrification and salinization. Water scarcity has already become a social problem, for example, in 2017 there were so-called ‘thirsty protests’ about water shortages from agriculture in rural areas.
Mining
Water pollution is prevalent from the extraction and processing of minerals, especially from phosphate mines. While Morocco’s mining law requires national or regional committees to review environmental impact studies, and environmental regulations exist for waste management and wastewater, there are not yet equivalent, stringent standards for water quality and discharges for the mining industry as there are for other sectors like textiles. International bodies working on mining have found that there is a lack of accountability. For example, there is no licensing process for phosphate mining and some research suggests that environmental and social protections may have worsened since 2017. Mining pollution has resulted in complaints from locals who are left without sufficient water for day-to-day needs and agriculture. Morocco is also among the 10 most at-risk countries of suffering mining-related water hazards that can affect water quality and scarcity, as well as result in flooding.
Trade and virtual water
Morocco’s main trade partner is the EU, which was the destination for 64 per cent of its exports in 2019. The country’s exports to the rest of the world are comparatively smaller (for example 4 per cent to India, 3 per cent to both Brazil and the US). Trade is a politically sensitive topic because of the issue of goods originating in the Western Sahara. Control of the Western Sahara was disputed from 1975 to 1991, when a ceasefire was agreed between Morocco and the Polisario Front. Since 2020, tensions have again escalated. The Western Sahara is a location of natural resources including phosphate, which is extracted by the Moroccan state-owned company OCP Group. Civil society groups such as Western Sahara Campaign UK have brought legal cases against Morocco–EU and Morocco–UK trade agreements, arguing that the agreements were established without the consent of the people of Western Sahara and are therefore in violation of international law. While the EU General Court annulled the trade agreement, the European Commission has appealed this judgment and the trade agreement remains applicable while the court judgment is under appeal.
Potential policy impacts
Moroccan exports to the EU include textiles, fertilizers and raw materials. Planned energy exports from Morocco of green hydrogen to the EU may put further strain on the country’s water. The 2013 sustainability impact assessment of Morocco–EU trade highlighted the potential negative impacts of intensified trade on Moroccan water systems including ‘a reduction in water resources, soil fertility and biodiversity – particularly in cultivated areas of high stress’.
Disclosure and due diligence policies
EU regulations, such as the Corporate Sustainability Reporting Directive (CSRD) and proposed Corporate Sustainability Due Diligence Directive (CSDDD), may impact the water footprint of Morocco–EU trade. Firms will be required to disclose supply chain information for audit by a third party. While firms may decide not to disclose information on water use, they must justify this decision, and water-intensive sectors such as mining are likely to come under closer scrutiny. This, in turn, could motivate businesses and their suppliers to reduce pollution and over-extraction. However, companies are not required to report on biodiversity and the welfare of contracted workers. Likewise, the EU’s sustainability impact assessment estimates that increased Morocco–EU trade could potentially harm biodiversity. If the CSDDD is passed, it may provide an enforcement mechanism for the CSRD and ensure that non-compliant firms receive fines and that victims are compensated for damages.
