Iraq Accelerates Transition to Clean Energy with Carbon Economy Initiatives

Iraq Accelerates Transition to Clean Energy with Carbon Economy Initiatives

In a pivotal move toward environmental sustainability, Iraq has unveiled a series of initiatives to transition from a fossil fuel-dependent economy to one embracing clean and renewable energy. Prime Minister Mohammed Shia Al-Sudani announced the formation of the Carbon Economy Company, a state-backed entity authorized to engage with international firms to develop carbon reduction projects.

This announcement coincided with Iraq hosting its first International Conference on Carbon Economics in Baghdad, signaling the country's commitment to addressing climate change and modernizing its energy infrastructure. The conference attracted global stakeholders, including representatives from the United States, United Kingdom, Norway, China, and India, all expressing interest in participating in Iraq's emerging carbon market. 

The Carbon Economy Company has already received numerous proposals focusing on emission reduction and environmental improvement. The Ministry of Environment will oversee these projects, issuing carbon credit certificates as part of Iraq's strategy to integrate into the global carbon trading system.

Prime Minister Al-Sudani emphasized the government's progress in economic and financial reforms, highlighting that investments have reached approximately $88 billion. He underscored the importance of creating an investor-friendly environment to attract international companies and support the nation's green transition.

In line with these efforts, Iraq plans to launch its first solar-powered electricity generation plant by the end of 2025. The government has also set a target to generate around 25% of its energy from renewable sources by 2030, equating to approximately 12 gigawatts. 

These developments mark a significant shift in Iraq's energy policy, reflecting a broader commitment to environmental stewardship and sustainable economic growth. By fostering international partnerships and investing in renewable energy, Iraq aims to position itself as a leader in the region's transition to a low-carbon economy.