Latest news with #ConferenceonCarbonEconomicsinIraq
Shafaq News
21-05-2025
- Business
- Shafaq News
Iraq turns to carbon markets to power clean energy shift
Shafaq News/ Iraq will launch its first solar-powered electricity generation plant by the end of 2025, Oil Minister Hayan Abdul-Ghani announced on Wednesday. Speaking at the inaugural of the first Conference on Carbon Economics in Iraq, held in Baghdad, Abdul-Ghani emphasized the country's growing awareness of the global climate crisis and the fast-evolving landscape of the energy sector. He stressed that reducing carbon emissions presents not only an environmental imperative but also a real opportunity to attract financing, boost technological development, and stimulate investment—particularly through carbon markets and carbon bonds. 'We have already taken concrete steps in this direction,' Abdul-Ghani stated, highlighting ongoing flare gas recovery initiatives and Iraq's commitment to ending routine gas flaring by 2029. He also noted ongoing collaborations with international markets and global partners aimed at identifying and implementing emission reduction strategies. Under the framework of the Paris Agreement, Iraq had pledged to cut its greenhouse gas emissions by 2% by 2023. According to the minister, this target has already been surpassed through a pioneering project in Basra. Abdul-Ghani revealed that several agreements have been signed with energy companies to halt gas flaring, with expectations that these initiatives will reduce thermal emissions by over 23%—exceeding Iraq's original Paris Accord commitment more than tenfold. Held under the patronage of Prime Minister Mohammed Shia Al-Sudani, the conference drew regional and international stakeholders, including diplomats and environmental experts. Minister of Environment Nizar Mohammed Saeed noted that the event aims to diversify national income sources and strengthen Iraq's green economy by tapping into carbon markets and unlocking new opportunities in climate finance. The carbon economy is built on a market-based framework that assigns value to emissions reductions. Tools such as carbon pricing, carbon credits, and emissions trading enable governments and companies to monetize their climate efforts. For oil-reliant economies like Iraq, investing in carbon market mechanisms offers a strategic pathway to diversify revenues, attract global investment, and align with international climate commitments.
Shafaq News
21-05-2025
- Business
- Shafaq News
CBI unleashes green finance: Billions for eco-projects
Shafaq News/ The Central Bank of Iraq (CBI) began issuing specialized banking licenses to support climate action and environmental sustainability, Governor Ali Al-Alaq announced on Wednesday. During the first Conference on Carbon Economics in Iraq, Al- Alaq said that Iraq's monetary policy promotes green finance by offering incentives for environmental projects and urging banks to manage climate risks. He added that the CBI is coordinating with international networks to align regulations and assess environmental impacts within the financial sector. As part of these efforts, Al-Alaq highlighted a 1 trillion Iraqi dinar (about $766.9M) initiative launched by the CBI in coordination with the Cabinet's Higher Lending Committee to help transition from traditional energy sources to renewable ones and reduce carbon emissions. The initiative is already financing projects such as waste recycling, palm cultivation, the Abu Ghar fields in the Samawah desert, and the Green House Project. The Central Bank of Iraq has partnered with the World Bank to develop a green finance model as part of its 2023–2029 sustainability roadmap, aiming to manage ESG risks and make Iraq's banking sector a leader in environmentally responsible practices. Al-Alaq also announced that the CBI has allocated 500 million dinars (about $383.4K) per facility to help rehabilitate brick factories transitioning from heavy-polluting black oil to cleaner liquefied gas. In addition, the Central Bank has contributed 1 billion dinars (about $766.9K) to Iraq's Environmental Protection and Improvement Fund to help combat air pollution, expand green spaces, and lower harmful emissions. It has also financed waste recycling projects under the CBI's Energy Initiative, which is currently being implemented to reduce soil pollution, particularly in landfill areas that pose long-term environmental risks to housing and agricultural development. The bank is also supporting small-scale agricultural projects through its Prospects program, in partnership with the International Labour Organization, the Iraqi Guarantee Company, and private banks. Around 3 billion dinars have been allocated to displaced communities in Nineveh and Duhok for this purpose. He also announced that the Central Bank had contributed nearly 350 billion dinars to Iraq's urban afforestation initiative. The initiative aims to create green belts around provincial capitals to serve as natural barriers against dust storms and pollutants while helping mitigate desertification.
