Central Bank of Iraq Launches Initiative to Fund Green Energy Transition for Brick Laboratories
The Governor of the Central Bank of Iraq, Ali Al-Alaq, has announced new details regarding an initiative designed to provide loans of up to 500 million dinars to brick laboratories. This program aims to support the transition of these facilities to cleaner energy sources as part of a broader effort to mitigate environmental pollution.
Al-Alaq emphasized the growing global focus on sustainable economic practices, stating that central banks around the world are increasingly prioritizing the green economy. This commitment is meant to counteract the adverse effects of environmental challenges on economic stability—a concern that the Central Bank of Iraq shares.
In his remarks, Al-Alaq outlined the central bank’s vital role in monitoring and enhancing economic conditions, particularly in fostering a sustainable green economy. He highlighted that one of the principal environmental challenges confronting Iraq is pollution, notably in urban areas such as Baghdad. Brick factories, which predominantly utilize black oil—an environmentally harmful fuel—are identified as significant contributors to this pollution crisis.
The Ministry of Environment has proposed a project to the Central Bank aimed at converting fuel sources from black oil to gas. The transformation process for each brick laboratory is projected to cost around 500 million dinars, which the central bank plans to fund.
To facilitate this transition, the Central Bank has resolved to include brick laboratories in its renewable energy initiative, offering soft loans of up to 500 million dinars per facility. This financial assistance is intended to enable brick manufacturers to shift to more sustainable energy sources, ultimately reducing their environmental impact.
Preliminary data reveals that there are approximately 300 brick laboratories in Baghdad alone, indicating a substantial scope for improvement in energy practices within the industry.
By fostering the development of cleaner energy solutions, the Central Bank aims to contribute to a healthier environment and a more sustainable economic future for Iraq.
