85 MARTINDALE CENTER FOR THE STUDY OF PRIVATE ENTERPRISE their development. According to calculations by Berahab et al. (2021c), the implementation of carbon pricing would increase the internal rate of return for renewables projects in Morocco enough to overcome the hurdle rate for project investments. Under the most ambitious possible decarbonization scenario, however, additional financial incentives beyond the implementation of carbon pricing would be required to make major renewables projects appealing to investors before 2030. The success of a Moroccan carbon pricing system in reducing emissions will ultimately depend on the imposition of a carbon price that is sufficiently high to incentivize emitters to pursue major emissions reductions. Markets that fail to implement a sufficiently high carbon price are ineffective in spurring greening; under such conditions, it is cheaper for companies to pay the cost of their emissions than to invest in curbing them. A 2021 study by Kikstra et al. calculated that the average social cost of carbon (the total social and health cost incurred due to emissions) may be as high as $307 per ton of CO2e, but carbon prices in even the most progressive pricing schemes lag far below this number. Conclusion Morocco is betting big on its energy transition as a mechanism for national economic and human development. This bet is likely a good one, as the transition to a low-carbon economy has the potential to benefit Morocco’s economy by as much as $165B by 2050, due primarily to a significantly reduced social cost of carbon (Berahab et al., 2021b). At the same time, however, a shortage of financing for the massive investments that decarbonization requires hinders Morocco’s ability to pursue its goal as rapidly as it might like. Furthermore, a rapidly growing domestic demand for power has led to a sluggish phaseout of fossil fuels and an expansion of domestic fossil fuel exploitation, threatening the country’s ability to follow through on the ambitious greening targets it has set. Embracing bold and creative technical and regulatory solutions, from nuclear power to carbon trading, may help Morocco overcome these hurdles and get on track to meet its climate commitments. The investments and policy reforms required to help the kingdom maintain its progress toward decarbonization are considerable, and certainly expensive, but finding ways to make them happen is necessary to create the emissions reductions that Morocco needs to offset the effects of climate change. 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