The Central Bank of Iraq outlined a set of climate-related financing and banking initiatives, including an IQD 1 trillion programme designed to support a shift from traditional energy sources to renewables, reduce carbon emissions and expand green spaces. The initiative was presented in cooperation with the Supreme Committee for Lending in the Council of Ministers. The central bank also reported work with the World Bank to develop and implement a green financing model under its 2023–2029 financial sustainability roadmap, including an output focused on a sustainable financing roadmap for environmental, social, and governance risk management. Alongside this, it has initiated the granting of specialised banking licences for green project finance, naming Riyada Bank and the Green Bank, and cited project-level measures such as funding to rehabilitate brick factories to move from black oil to liquid gas at IQD 500 million per plant, as well as financing for waste recycling projects under the renewable energy initiative’s controls. Work is underway to integrate the newly licensed banks into the Iraqi banking environment.
Central Bank of Iraq 2025-05-21
Central Bank of Iraq sets out IQD 1 trillion renewable energy financing initiative and begins licensing specialised green banks
The Central Bank of Iraq announced climate-related financing initiatives, including an IQD 1 trillion program for renewable energy and carbon emission reduction, in collaboration with the Supreme Committee for Lending and the World Bank. It introduced specialized banking licenses for green project finance, naming Riyada Bank and the Green Bank, and detailed funding for projects like brick factory rehabilitation and waste recycling.