Economy Update – Baghdad
The National Investment Authority announced today that it is developing new regulations designed to incentivize investments in support of the green economy. The authority emphasized the importance of collaboration with relevant organizations to enhance national energy initiatives and minimize emissions.
Hanan Jassim, spokesperson for the National Investment Authority, stated, “The authority is crucial in fostering national energy initiatives and curbing emissions through close collaboration with the relevant ministries and institutions.” This partnership aims to channel investments into renewable and sustainable energy projects, aligning with Iraq’s international commitments to combat climate change.
Jassim further elaborated that “cooperative mechanisms include joint strategy planning for energy projects, coordinating with the Ministries of Electricity and Oil to assess national energy requirements. This includes focusing on solar and wind energy initiatives and developing plans to reduce reliance on fossil fuels by promoting investments in clean energy. Collaborations with the Ministry of Environment aim to identify suitable locations for renewable energy projects while considering their environmental impact.”
Additionally, Jassim highlighted that the cooperation has also involved the design and launch of renewable energy investment projects, which include conducting economic and technical feasibility studies with the relevant ministries. These projects encompass solar energy stations (in partnership with the French company Total), wind energy initiatives, and waste-to-energy projects (in collaboration with the Ministry of Municipalities). Furthermore, the authority has announced investment opportunities in the green sector to attract international companies looking to invest in Iraq.
“A key aspect of our cooperative mechanisms is the streamlined process for granting investment licenses for clean energy projects. This entails establishing a quick and unified procedure, partnering with the Ministries of Electricity and Environment to provide necessary environmental and technical approvals, as well as ensuring the allocation of suitable land for renewable energy initiatives in conjunction with the Ministries of Finance and Agriculture,” she pointed out. Coordination efforts also extend to infrastructure development to facilitate linking renewable energy projects to the national grid, working alongside the Ministry of Electricity, and collaborating with the Ministry of Transport to ease the entry of essential technological equipment through border ports. Furthermore, the Ministry of Communications is being engaged to implement smart energy management systems.
In addition to these efforts, Jassim noted, “Providing incentives and support is also part of our collaborative strategy. This involves working with the Ministry of Finance and tax authorities to offer tax and customs exemptions for projects that contribute to emission reduction goals and smooth the importation of clean energy equipment, all coordinated with the General Authority of Customs. We are also pursuing international collaborations, coordinating joint efforts with foreign ministries to attract foreign investments and modern technologies through international agreements, engaging with entities such as the United Nations Development Programme (UNDP), the World Bank, and IRENA for financial and technical support, while actively participating in international conferences like the Climate Summit (COP) to reaffirm Iraq’s commitment to sustainable development and emissions reductions.
Support for green economy initiatives has also incorporated collaboration with the Ministry of Environment to devise investment-encouraging regulations that account for emissions reduction, alongside efforts to support waste recycling projects and their conversion into energy through coordination with the Ministry of Municipalities and Public Works. Additionally, monitoring and evaluating the environmental performance of projects is conducted in partnership with the Ministry of Environment to ensure compliance with international standards, with regular reports provided to the Council of Ministers detailing the progress and impacts of these initiatives on emission reductions.
Jassim underscored that “the collaboration between the National Investment Authority and other ministries is organized and strategic, focusing on increasing the share of clean energy within Iraq’s energy mix, fulfilling Iraq’s climate obligations under the Paris Agreement, and creating environmentally sustainable investment opportunities while reducing emissions and enhancing overall quality of life.”
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