A report published by Al-Ahed News Agency stated that the Iraqi government granted approval to license a green bank, which is considered the first of its kind among Arab countries. The report indicated that the first capital will be 100 billion Iraqi dinars and reach about 400 billion by 2028.

The goal of these procedures is to receive calls to speed up their implementation and do not enter into the field of routine and bureaucracy, especially with those who want to invest in them. The head of the Baghdad Center for Renewable Energy and Sustainability, Muhammad Al-Dulaimi, stated that the Central Bank of Iraq launched an initiative about 4 years ago, and it was dedicated to supporting renewable energy with an amount One trillion Iraqi dinars as a contribution to supporting energy and reducing emissions, in addition to the transition to the green economy.

This initiative is considered the ideal solution to solve the problem of the initial cost of solar systems, which hinders citizens from acquiring them. The initiative includes full financing and installments of its cost over five years without interest and with an administrative fee of 6%, and the value of the monthly installments is approximately half the value of the same electrical capacity that citizens paid to participate in Shared generators in residential neighborhoods.

The initiative aims to transform into a green economy. It has set high-efficiency quality specifications that guarantee a working system and its guarantee throughout the duration of the loan, which reached 5 years, which enhances citizens’ confidence in the feasibility of using solar systems.

The Central Bank of Iraq launched a strategy aimed at cooperating with the Supreme Lending Committee in the Council of Ministers and an initiative to transition to renewable energy. It aims to reduce carbon dioxide emissions in addition to improving the environment in Iraq, and the initiative has a positive role in solving part of the electrical energy crisis in Iraq. It will add about 400 megawatts throughout Iraq, which constitutes a small percentage compared to the shortfall between demand and supply. The biggest problem is not in production but in transportation and distribution, and the use of solar systems will reduce the pressure on the transportation and distribution network in addition to saving the monthly loss that the state will bear in exchange for supporting the residential sector. ; It represents approximately $13 billion annually.

The Central Bank of Iraq granted final approval to establish the Green Bank with a capital of 100 billion, and its capital is expected to reach 400 billion by 2028. The bank aims to provide support for environmentally friendly energy, and this bank is considered the first of its kind in the countries of the region.

The bank will contribute to creating more than 90,000 job opportunities in the sector over a period of 4-5 years. The bank has a plan aimed at localizing the industry, as it aims to establish a city specialized in renewable industries, as well as supporting artificial intelligence and knowledge economy companies, whose requirements are considered easier and more targeted. Investing in the human capital available in the country.

Solar energy does not wait for the infrastructure to be prepared, which the concerned authorities have long claimed. These projects have nothing to do with infrastructure, and the best choice is to use solar energy systems.

The initiative aims to provide loans to citizens to install solar energy systems. It issued conditions with strict specifications, and the Iraqi government aspires to secure a third of the country’s electrical production from renewable energy sources by 2030, and the Iraqi government concluded an agreement in 2021 with the Emirati company Masdar to build five solar energy stations with a production capacity of about 1,000 megawatts.

The current government must take advantage of the environment in which it operates. The opportunity is available through political, security and economic stability to accelerate efforts to support renewable energy projects, through advanced loans and the trend towards international investment to provide financing for small projects that can support and contribute to solar energy projects.

The government must rely on clean energy and its optimal use, and this must be accompanied by a major awareness campaign for its employees, who in turn reflect it on the street. Iraq produces more than 80% of the electrical energy that is generated from fossil fuel sources, and Iraq still continues to burn billions of cubic meters. Every year, it is ranked second among the top natural gas burning countries in the world after Russia.