Imperialists Circle the Wagons Around Neo-colonial Solution to the Western Sahara Question--Mining Interests Are at the Base of the Maneuvers 

Foreign Secretary David Lammy acknowledged that any UK-funded projects in Western Sahara will be subject to UKEF's due diligence process.

MENA

Basma El Atti

Rabat

03 June, 2025

The United Kingdom (UK) has endorsed Morocco's autonomy plan as "the most credible" basis to resolve the decades-long dispute over Western Sahara, signalling potential investments in the territory.

Over the weekend, British Foreign Secretary David Lammy described Morocco's 2007 autonomy plan for Western Sahara as the "most credible and pragmatic" path forward, a move that breaks with the UK's long-standing support for a UN-led self-determination process.

The Western Sahara, a sparsely populated former Spanish colony about the size of the UK, is claimed by both Morocco and the Algerian-backed Polisario Front. While Morocco controls most of the territory and considers it an integral part of the kingdom, the Polisario maintains a self-declared "Sahrawi Arab Democratic Republic" over a narrow strip east of a fortified sand wall built by Rabat.

Since 1991, the United Nations (UN) has overseen a ceasefire and maintained a peacekeeping mission tasked with preparing a referendum for the Sahrawi people to decide the territory's future. However, years of deadlock over who should be eligible to vote have stalled the process.

In 2007, Morocco proposed an autonomy plan that would offer the region self-governance under Moroccan sovereignty, rejecting complete independence. Algeria and the Polisario dismissed the plan, maintaining that only a referendum can resolve the dispute.

Britain's endorsement, while stopping short of recognising Moroccan sovereignty over the territory—as the United States and France did—marks a significant policy shift.

The move comes a year after more than 30 Members of Parliament and Lords signed a letter to then-Foreign Secretary David Cameron, urging the government to back Morocco's plan as the most viable solution. The letter stated Morocco's role as a strategic security and economic partner in North Africa.

Meanwhile, since last January, former UK Defence Minister Dr Liam Fox has lobbied for his country to endorse Morocco's sovereignty over Western Sahara.

After its policy shift on the territory, London hinted at a potential economic opening in the territory.

Its export credit agency, UK Export Finance (UKEF), said it may consider supporting projects in the territory as part of its broader commitment to mobilise £5 billion (about $6.4 billion) for new initiatives in Morocco, including energy and infrastructure for the 2030 World Cup which Rabat is co-hosting with Spain and Portugal.

Professor Abdelkader Fassi Fihri of the Euro-Mediterranean University in Fez views London's move as more than a diplomatic gesture. He says, "The UK, like France, sees the territory as vital economic hubs linking the Atlantic and Africa's interior."

However, one area of particular interest for the UK is green energy.

Can W. Sahara's green energy help the UK dodge a $1B carbon tax?

In 2019, the United Kingdom became the first G7 country to enshrine a legally binding commitment to reach net-zero greenhouse gas emissions by 2050. This pledge requires the UK to eliminate or offset all emissions through measures such as carbon removal technologies or investments in renewable energy.

The urgency has grown with the looming implementation of the European Union's Carbon Border Adjustment Mechanism (CBAM) in January 2026. The scheme will impose tariffs on imports from countries with weaker carbon pricing systems, such as the UK, unless the UK's Emissions Trading System (ETS) with the EU's is linked via an agreement. 

Without a deal, British exporters could face up to £800 million ($1 billion) in added costs annually. The UK's ETS currently operates at lower carbon prices than the EU's, making British goods more vulnerable to these tariffs. The looming tariffs put the country under pressure to increase its use of green energy and decarbonise global supply chains to mitigate the impact.

Against this backdrop, the Western Sahara's potential as a renewable energy powerhouse is gaining attention. With abundant sun, wind, and access to the Atlantic coast, the region offers an optimal environment for producing green energy—particularly decarbonised fuels like green hydrogen and ammonia.

In March 2024, Morocco launched its "Offre Maroc" initiative, calling on international firms to invest in one million hectares designated for green energy development. Rabat aims to supply 4 percent of the world's green hydrogen demand by 2030.

Yet the legality of investing in a disputed, non-autonomous territory remains fraught. 

Investing in a 'non-autonomous territory'

When asked about the legitimacy of investing in the region, French President Emmanuel Macron said French companies would "support the development" of the territory through "sustainable and solidarity-based initiatives […] for the benefit of local populations." 

On 4 October 2024, the Court of Justice of the European Union (CJEU) upheld a previous ruling by the EU General Court, which had annulled two EU-Morocco trade agreements covering fishing and agriculture. The court found that the deals lacked the required "consent of the people of Western Sahara."

Though the EU had conducted consultations with residents, the court ruled that these did not constitute 'valid consent.'

While the UK is not bound by EU court rulings following Brexit, Foreign Secretary Lammy acknowledged that any UK-funded projects in Western Sahara would be subject to UKEF's due diligence process, including assessing a project's environmental, social, and human rights impact, according to their website.

What that entails for the Western Sahara remains unclear.

"It is for companies to take their own decisions on whether to do business in Western Sahara," said Douglas Alexander, Minister of State for Trade Policy, in March.

Algeria's reacted in a surprisingly restrained manner to the UK's shift. Unlike its diplomatic fallout with France and Spain over similar moves, Algiers issued a short statement expressing "regret" over the British endorsement—echoing the language it used when the United States reaffirmed Morocco's sovereignty over the region. It made no mention of withdrawing its ambassador or retaliating diplomatically.

"Algeria has found itself in a predicament because of these statements, and forced each time to issue responses that put it in a diplomatically awkward position with the concerned countries", said Said Saddiki, professor of international relations at Sidi Mohamed Ben Abdellah University in Fez.

"It cannot engage on an equal footing with all countries," he added.