The Iraq green finance plan gains momentum as the Central Bank of Iraq (CBI) strengthens its climate response. Governor Ali Mohsen Al-Allaq outlined key efforts at Iraq’s first Conference on Carbon Economics.
To begin with, he stressed the urgency of Iraq’s environmental crisis. Yet, he also saw opportunity in Iraq’s post-war recovery. As a result, he introduced several measures tied to the Iraq green finance plan. These steps aim to fight pollution and promote a greener economy.
First, the CBI launched a 1-trillion-dinar lending program. It supports renewable energy, lowers emissions, and expands green spaces. The program is part of a broader plan led by the Prime Minister’s High Lending Committee.
Next, the Bank cooperated with the World Bank to design a model for green finance. This model aligns with Iraq’s Financial Sustainability Roadmap for the coming years. It includes the use of environmental, social, and governance (ESG) risk frameworks.
Importantly, Al-Allaq announced the licensing of two banks focused on climate finance. Riyada Bank and Al-Masraf Al-Akhdar (The Green Bank) will soon join Iraq’s banking network. Their main goal is to fund eco-friendly projects under the Iraq green finance plan.
Moreover, the CBI is helping brick factories switch from heavy fuel oil to liquefied gas. It is providing up to 500 million dinars per factory. This move reduces harmful emissions and modernizes an outdated sector.
The Bank also funds recycling initiatives. These projects aim to reduce landfill pollution. This will clear the way for future housing and farming developments.
Al-Allaq confirmed that the CBI will keep supporting climate action. He believes financial tools can reshape Iraq’s environment and boost quality of life.
Furthermore, he encouraged more banks to follow green lending practices. By doing so, Iraq can improve health, grow its economy, and cut its carbon footprint.
With all these actions, the Iraq green finance plan gains momentum. These efforts will help Iraq rebuild and protect its environment at the same time.