Economy Update – Baghdad
The Governor of the Central Bank, Ali Al-Alaq, unveiled the details of a new initiative aimed at providing loans of up to 500 million dinars to brick manufacturing facilities. This initiative aligns with the bank’s commitment to address severe environmental pollution concerns.
Al-Alaq highlighted the growing global emphasis on the green economy and the promotion of clean energy solutions, emphasizing the impact of environmental challenges on economic stability. He reiterated that the Central Bank of Iraq shares this commitment to fostering sustainable economic practices.
He noted that one of the primary environmental challenges currently confronting Iraq is pollution, particularly in Baghdad and surrounding provinces. Brick factories are significant contributors to this pollution, primarily due to their reliance on black oil, a fuel deemed unsuitable for environmental well-being.
The Governor also mentioned that the Ministry of Environment had proposed a project to the Central Bank aimed at transitioning brick facilities from black oil to gas. This conversion process is expected to require an investment of approximately 500 million dinars per facility to facilitate the shift toward cleaner fuel sources.
In response, the Central Bank has decided to incorporate these brick laboratories into its renewable energy initiative. Soft loans of up to 500 million dinars will be allocated to each facility to support their transition to more sustainable energy sources, thus contributing to the reduction of environmental pollutants.
According to preliminary estimates, there are around 300 brick manufacturing plants located in Baghdad alone.
