Proposal of a Theoretical Model for Implementing the Green Budget Mechanism within Territorial Communities in Morocco

Abstract

The mechanisms of climate finance aim to stimulate investments in low-carbon projects, enhance the resilience of communities to climate impacts, and facilitate the transfer of clean technologies. The green budget is one of these mechanisms; it is a budgetary approach that integrates environmental considerations into the planning, allocation, and execution of financial resources within an organization. The primary goal is to promote ecological sustainability while supporting economic and social development at the local level through green budgeting within territorial communities, which refers to a budgetary approach that incorporates environmental and sustainable considerations into resource allocation and financial planning.

The thematic framework of our issue is defined by a set of theories supported by the emerging discipline of climate change economics. In a systemic approach adopted through pragmatic reasoning, which emphasizes what works in practice and tangible outcomes, we seek practical solutions to problems using proven methods and tangible evidence. The dilemma within the presented theoretical approaches lies in two controversial paradigms: the proponents of growth and those advocating degrowth. The latter argue that facing climate risks requires sustainable economic degrowth and renewal. Certainly, climate is a universal common good, involving all actors, yet institutions are most affected by the relevance of their local policies in the face of the uncertainties of climate change.

Our motivation is driven, on one hand, by testing this mechanism in the budgeting process as a tangible advantage both environmentally and socially and economically. On the other hand, we aim to advocate for the implementation of this mechanism as a new budgetary policy to be adopted in order to create more sustainable, resilient, and responsible communities for both current and future generations.

To address our issue, this paper proposes a theoretical and conceptual framework for the implementation of the green budget within territorial communities in Morocco. It provides an avenue for operationalizing the climate change adaptation strategy through socially responsible investment to guide policies and decisions, maximize environmental and economic benefits, and contribute to the creation of sustainable and resilient communities.

Keywords: Green finance, green budget, socially responsible investment, adaptation strategy

JEL Classification:  Q58, H61, H83,

Paper type:  Theoretical research