Iraq Launches Major Green Finance Initiatives
By John Lee.
Central Bank of Iraq (CBI) Governor Ali Mohsen Al-Allaq has reaffirmed the Bank's commitment to addressing climate change and reducing carbon emissions, during his participation in Iraq's first Conference on Carbon Economics.
Speaking at the event, Al-Allaq highlighted Iraq's pressing environmental challenges, stating that the country has a unique opportunity to restore a war-exhausted and polluted environment. He outlined several initiatives led by the CBI, including a landmark 1-trillion-dinar [$763 billion] lending programme, launched in collaboration with the Prime Minister's High Lending Committee, aimed at supporting renewable energy, lowering emissions, and expanding green spaces.
In cooperation with the World Bank, the CBI has also developed a green finance model aligned with its Financial Sustainability Roadmap (2023-2029). This includes the implementation of environmental, social, and governance (ESG) risk frameworks, and the development of a national roadmap for sustainable finance.
Al-Allaq announced the licensing of two specialised banks - Riyada Bank and Al-Masraf Al-Akhdar (The Green Bank) - focused on climate finance, with plans to integrate them into Iraq's banking sector soon.
The Bank is also funding the conversion of brick factories from heavy fuel oil to liquefied gas, with up to 500 million dinars allocated per facility, under the same green lending initiative.
Additionally, CBI is financing waste recycling projects to help reduce landfill contamination, particularly in areas that may later be developed for housing or agriculture.
Al-Allaq concluded by affirming the Bank's intention to continue supporting climate initiatives, noting that economic tools can play a key role in fostering a healthier environment and improving quality of life across Iraq.
(Source: CBI)
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