Workshop

Industrial Policy Roundtable on Battery Value Chains

A high-level roundtable in Geneva that brought together World Trade Organization delegates and experts to discuss industrial policy in the electric vehicle (EV) battery value chain, drawing on case studies from Indonesia, Morocco, and China.

May 8, 2026 1:00 pm - 3:00 pm CEST

(By invitation)

About the Event

Industrial policy is shaping the global transition to clean energy, with EVs and batteries sitting at the intersection of trade, climate, and development. Governments are using industrial policy tools like subsidies, export restrictions, investment facilitation, and local content rules to build domestic capacity across the EV battery value chain.

While these policies can support industrialization and decarbonization, they also have cross-border effects on trade, investment, technology flows, and access to value chains, particularly for developing countries.

This high-level roundtable brought together World Trade Organization delegates and experts to explore these issues, drawing on three case studies from Indonesia, Morocco, and China. The discussion aimed to deepen understanding of emerging policy trends, their global implications, and opportunities for international cooperation.

Key questions included:

  • Which policy tools are countries using, and why?
  • How do these policies affect trade, investment, and access to technology?
  • What challenges do developing countries face in moving up the value chain?
  • What can we learn from country experiences to improve policy design?
  • Where could international cooperation reduce tensions and maximize positive spillovers?

Speakers

  • Alice Tipping, director, Trade and Sustainable Development, IISD – Opening and closing remarks
  • Poppy Winanti, professor, Universitas Gadjah Mada – Case study, Indonesia
  • Poorva Karkare, senior policy analyst, the European Centre for Development Policy Management – Case study, Morocco
  • William Davis, economic advisor with the Secretariat to the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development – Case study, China
  • Aaron Cosbey, senior associate, IISD – Key takeaways

Insights from this dialogue will inform an upcoming policy brief on industrial policy and the EV battery value chain. 

FERMA: Femmes Résilientes au Moyen-Atlas

Using an integrated approach to forest ecosystem management, the FERMA project works with twenty-five women's cooperatives in the Khénifra National Park region of Morocco, supporting their resilience in the face of climate change.

The Femmes Résilientes au Moyen-Atlas (FERMA) project promotes the use of Nature-Based Infrastructure (NBI), which produces ecosystem services benefiting 3000 people in the Khénifra National Park. Known as the 'water tower' of Morocco, the park is situated in the Middle Atlas Mountains, which feed the Oued Oum-Er-Rbia and Oued Sebou rivers, essential water sources that the country's agriculture depends on.

FERMA fosters an integrated approach to cedar ecosystem management, recognizing the key role of local communities in conserving forest biodiversity and maintaining environmental climate change adaptation services, particularly for women. Through community engagement, FERMA aims to strengthen the key role played by indigenous peoples, especially women and young women, in the management of natural resources and biodiversity conservation.

Increasing climate resilience in the region is a key goal of the project. The Middle Atlas Mountains region has been strongly impacted by the effects of climate change: rising temperatures, droughts and desertification. Without adequate protection and restoration measures, a 45% loss of Moroccan forests is envisaged by 2050.

Similarly, FERMA aims to protect this highly biodiverse region, home to more than 24,000 animal and 7,000 plant species. Under threat from climate change, nearly 1200 of these species are listed on the IUCN Red List, due to displacement from increasingly hot temperatures and dry land. Studies also suggest that around 20% of flora and fauna could disappear by 2050, if conservation measures are not implemented. The overall cost of climate-change related biodiversity loss is now estimated at more than USD 300 million, with the potential to reach more than USD 2 billion by 2030.

The project was conceived as a direct support to Agence Nationale des Eaux et Forêts (ANEF) Forests Strategy 2020-2030 and the Khénifra National Park Management and Development Plan and a contribution to the strategic objectives of the National Strategic Adaptation Plan 2020-2030 and Morocco’s National Biodiversity Strategy and Action Plan. The initiative also hopes to strengthen the management standards and governance of the Khénifra National Park, in order to promote its integration into the Green List of Protected Areas of the International Union for Conservation of Nature (IUCN), alongside ongoing programs in the Atlas Cedar Biosphere Reserve, in the Ifrane and Toubkal National Parks, also focused on the conservation of cedars in the Middle Atlas.

SOCODEVI will lead the project, with partners including the International Institute for Sustainable Development, IUCN and Ostrom Climate Solutions.

Project details

News

EU Court Annuls EU Fisheries Deal With Morocco, Backing Polisario

A European Union court has struck down the bloc’s trade and fisheries deals with Morocco, saying that the consent of the people of Western Sahara is required to implement agreements covering the territory.

October 20, 2021

The European Union’s second-highest court has struck down the bloc’s trade and fisheries deals with Morocco, saying they were agreed to without the consent of the people of Western Sahara.

Morocco annexed the vast territory on Africa’s Atlantic coast in 1975 after the withdrawal of Spain from what was then Spanish Sahara. Morocco considers the territory, now known as Western Sahara, as its own. However, the annexation was largely unrecognized internationally and opposed by the Algeria-backed Polisario Front, which fought a 16-year guerrilla war against the kingdom. The United States recognized Morocco’s sovereignty over the Western Sahara last year. More than 20 mostly African and Arab states have opened consulates in the natural-resource rich territory.

The United Nations brokered a ceasefire between Morocco and the Polisario in 1991 and has been calling for a mutually acceptable political solution to the conflict. Morocco has offered autonomy to the Western Sahara, but Algeria and the Polisario have rejected this, insisting on a referendum with independence as an option. Such a referendum has never taken place.

The General Court of the European Union first accepted that the Polisario Front had the legal capacity to bring proceedings before EU courts, which the respondents had questioned. It then accepted the Polisario’s view that the consent of the people of Western Sahara was required to implement agreements covering the territory and that steps, such as consultations, taken by EU authorities could not be regarded as having secured that consent.

“The court takes the view that, in so far as the agreements at issue apply expressly to Western Sahara and, as regards the decision concerning the Sustainable Fisheries Partnership Agreement, to the waters adjacent to that territory, they concern the people of that territory and require the consent of its people,” the court ruled.

Morocco Plans to Appeal Ruling

The EU and Morocco responded to the court’s decision by issuing a joint statement saying they would “take necessary measures to ensure the legal framework guaranteeing the continuation and stability of trade between the EU and Morocco.” The court said its annulment of the agreements would not take place for two months, giving the two trade partners time to lodge an appeal. Morocco plans to appeal the judgment, Reuters reported, citing a senior diplomatic source.

Hugh Lovatt, a senior policy fellow with the Middle East and North Africa Programme at the European Council on Foreign Relations, said an appeal was unlikely to change the Luxembourg-based court’s position, the EUObserver reported.

The court’s decision was widely expected, as it reflects rulings in December 2016 and February 2018 that earlier versions of the trade and fisheries deals only applied to Morocco and not the Western Sahara. The Polisario Front challenged two EU–Morocco agreements struck in 2019 that had been revised to add the territory and its adjacent waters.

Total trade in goods between the EU and Morocco amounted to EUR 35.3 billion last year. The EU is Morocco’s biggest trade partner, accounting for 56% of its goods trade in 2019. About 64% of Moroccan exports—led by electrical machinery and transport equipment (EUR 6.1 billion), agri-foods (EUR 2.2 billion), and textiles and clothing (EUR 1.4 billion)—went to the bloc that year, and 51% of Morocco’s imports came from the EU. Services trade between the two amounted to EUR 10.7 billion in 2019.

Morocco exported EUR 434 million in fish, tomatoes, and melons from Western Sahara to Europe in 2019, according to the European Commission. The monetary gain for Morocco includes access rights, sectoral support from the EU, and additional contributions from the owners of fishing vessels. The kingdom stands to lose EUR 52 million annually in European funds, with the fate of some 128 EU fishing vessels hanging in the balance. These vessels—mostly from Spain, but also from Portugal, France, Germany, Lithuania, Latvia, Poland, the Netherlands, Ireland, Italy, and the United Kingdom—are allowed to fish in Morocco’s exclusive economic zone under the partnership.

News details

Topic
Trade
Region
Morocco
Impact area
Sustainable Economies
Nature
Report

Sustainable Asset Valuation (SAVi) of the Contournement de Rabat (Morocco)

IISD has carried out an economic and financial assessment of different risk scenarios of the contournement de Rabat, the bypass road in Morocco. The assessment included the valuation of different externalities related to the road project. 

March 21, 2019

Key Messages

  • The Rabat bypass in Morocco, including the iconic Mohammed VI Bridge, was built to decrease traffic and congestion in and around Rabat. SAVi assesses the financial implications of different operational risk scenarios.
  • The SAVi assessment shows that the value of time saved and the costs of accidents are significant externalities related to the road project. For example, SAVi forecasts that a decrease in maintenance activities may lead to an increase up to EUR 236 million in costs of accidents.
  • SAVi calculates the traditional financial indicators (NPV, IRR and debt coverage ratios) and concludes that the revenues of the project are insufficient to cover the capital and operational expenditures, under all risk scenarios.

IISD has carried out an economic and financial assessment of different risk scenarios of the contournement de Rabat, the bypass road in Morocco. The assessment also includes the valuation of different externalities related to the road project. IISD used the Sustainable Asset Valuation (SAVi) tool for this assessment.

SAVi is a simulation service that helps governments and investors value the many risks and externalities that affect the performance of infrastructure projects.

The distinctive features of SAVi are:

  • Valuation: SAVi values, in financial terms, the material environmental, social and economic risks and externalities of infrastructure projects. These variables are ignored in traditional financial analyses.
  • Simulation: SAVi combines the results of systems thinking and system dynamics simulation with project finance modelling. We engage with asset owners to identify the risks material to their infrastructure projects and then design appropriate simulation scenarios.
  • Customization: SAVi is customized to individual infrastructure projects.

Report details

Topic
Public Procurement
Region
Morocco
Project
The Sustainable Asset Valuation (SAVi)
Impact area
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2018
Report

Swap: Reforming support for butane gas to invest in solar in Morocco (French only)

An evaluation of the potential to reform butane subsidies in Morocco and use a portion of the savings to fund a transition to clean energy.

December 12, 2018

Key Messages

  • Subsidies to butane in Morocco are expensive: around 3.9 per cent of the Morrocan government budget was spent on butane subsidies in 2017.
  • Proposals to reform butane subsidies could have a significant impact on consumers. Mitigation measures are needed to reduce social impacts and improve targetting.
  • A swap from fossil fuel subsidies to renewable energy could help to reduce subsidy costs and prompt a clean energy transition.

In Morocco's agricultural sector, subsidized butane gas is used for irrigation and household tasks.

A proposed reform of the system of butane subsidies could substantially increase energy costs for some consumers, potentially increasing energy poverty and pushing some rural consumers toward cooking on open fires. 

A subsidy swap replacing subsidies to fossil fuels with renewable energy could allow the removal of fossil fuel subsidies and promote a transition to clean energy. Two technologies—solar irrigation pumps and solar thermal collectors—could potentially offset the use of butane and reduce the cost of butane subsidies. However, policies are needed to overcome high upfront costs. This report reviews how butane subsidies can be reformed, how the impacts on consumers can be managed and how some of the savings can be reallocated to promote a transition to clean energy.       

ONLY AVAILABLE IN FRENCH  

Report details

Topic
Subsidies
Energy
Region
Morocco
Impact area
Climate
Publisher
IISD
Copyright
IISD, 2018
Explainer

A Guide to COP 22

Negotiators gathering from November 7–18, 2016, in Morocco face the monumental task of preparing for the implementation the historic Paris Climate Change Agreement. IISD brings you up to speed on the status of negotiations and the most significant items on the Marrakech Climate Change Conference agenda.

November 1, 2016

The State-of-Play in the Run-Up to the Marrakech Climate Change Conference

Negotiators gathering from November 7–18, 2016, in Morocco face the monumental task of preparing for the implementation the historic Paris Climate Change Agreement. They are under intense pressure to move quickly. Countries must ensure that the various modalities of the Paris Agreement are ready before 2020, which is when implementation of the agreement will effectively start.

This publication serves as a guide to the Marrakech Climate Change Conference, bringing you up to speed on the status of negotiations and the most significant items on the agenda.

Explainer details

Guide

IISD at the Marrakech Climate Change Conference

The 22nd session of the Conference of the Parties (COP 22) to the UNFCCC takes place from 7-18 November 2016. Our experts will be on the ground providing daily coverage of the negotiations, publishing targeted research, and convening events.

October 25, 2016

The 22nd session of the Conference of the Parties (COP 22) to the UNFCCC takes place from 7-18 November 2016.

During the conference, parties will, among other things, begin operationalizing the Paris climate change agreement. Our experts will be on the ground providing daily coverage of the negotiations, publishing targeted research, and convening events. IISD is also providing technical and policy support to this year’s COP Presidency, Morocco.

Guide details

Topic
Climate Change Adaptation
Climate Change Mitigation
Subsidies
Region
Morocco
Impact area
Climate
Publisher
IISD
Copyright
IISD, 2016
Report

Food Price Inflation and Food Security: A Morocco case study

January 29, 2013

This report comes in the context of rising food prices and UN predictions of a looming global food crisis in 2013.

Written at the request of Pulse Canada, it provides insight into food price inflation and food security in low-income countries, and the implications for international agricultural trade. The paper examines Morocco's food security strategy and trade policy to assess the socioeconomic implications of reducing import tariffs on Canadian lentils. This report provides important detailed analysis of the relationship between pulses and Morocco's efforts to open up its economy in the context of the current global economic situation. Morocco has a range of options available to move towards addressing the food security and trade policy nexus in the framework of sustainable development strategies, particularly in the agricultural sector. Moreover, these different options are not mutually exclusive, and are relevant in the shorter to medium and longer term.

Participating experts

Report details

Topic
Trade
Food and Agriculture
Region
Morocco
Impact area
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2013