Morocco among leaders in 2025 comeback of low-carbon hydrogen tax incentives

Morocco is among seven advanced and emerging economies that led the comeback of generous tax incentives for low-carbon hydrogen in 2025.

This comes even as some countries have moved to cancel such incentives over economic and environmental feasibility concerns, according to a new report by the Attaqa platform.

Alongside Morocco, the Attaqa platform reported that Australia, Canada, the United States, Finland, Mauritania, and Brazil introduced tax incentives for low-emission hydrogen production in 2025.

It mentioned that Morocco selected five consortia of foreign and Arab companies to develop six green hydrogen and derivative projects in the southern regions, which have high renewable energy potential.

The government offered these companies a range of tax benefits, including exemptions from import duties and VAT on equipment and materials, along with other customs advantages.

These measures, according to the same source, support Morocco’s target of producing three million tons of green hydrogen annually by 2030, making use of its abundant renewable energy resources and desalinated water.

Mauritania, meanwhile, introduced new legislation providing a series of tax incentives for low-carbon hydrogen production.

These include exemptions from VAT and export taxes, reduced customs duties on imports (from 4% to 2%), and corporate tax cuts.

For context, Morocco’s steering committee for the national “Hydrogen Offer” has recently approved new measures to advance the country’s green hydrogen sector, including initial land contracts for major projects and the completion of the preparatory phase of a project developed by another French-Danish consortium.

The committee endorsed preliminary land reservation agreements for five national and international investors, who will develop six projects across Morocco’s three southern regions with a combined value of MAD 319 billion.