The Central Bank of Iraq Implements Environmental Initiative for Brick Factories
On Sunday, the Central Bank of Iraq unveiled a new environmental initiative aimed at modernizing brick laboratories in the country. This initiative aligns with global trends towards reducing carbon emissions and enhancing environmental sustainability.
In a recent statement, the bank indicated that it is actively working with the Ministry of Environment to promote the adoption of clean energy solutions that will enable sustainable development. The Central Bank of Iraq is now extending its renewable energy initiative to include local brick factories, facilitating a transition from polluted fuels, such as black oil, to cleaner alternatives like liquefied gas. This move is crucial for reducing air pollution and improving environmental conditions.
To support this transition, a significant increase in the available funding has been introduced: the loan ceiling for each factory has been raised to 500 million dinars, accessible through licensed Iraqi banks. Furthermore, the Central Bank is allocating 1 billion dinars to bolster the Environmental Protection and Improvement Fund, aimed at combatting air pollution and the environmental changes it causes.
This initiative responds directly to the pressing needs of green economic development, aiming to mitigate the industrial impact on the environment and support a gradual shift towards a more sustainable economic model.
Brick factories, particularly in Baghdad’s Nahrawan and its surrounding areas, have emerged as significant contributors to the capital’s air pollution. The prevalent use of black oil in these facilities has resulted in the emission of considerable amounts of carbon dioxide and particulate matter, adversely affecting air quality and leading to environmental degradation.
In a directive issued in October 2024, the Ministry of Industry mandated that all brick factories transition to using gas in place of black oil within 18 months. To assist with the financial implications of this necessary update, factories will have access to loans tailored to cover the associated costs.