Shafaq News/ Iraq’s central bank has announced on Sunday, new financial incentives to support industrial facilities in reducing carbon emissions and adopting cleaner energy sources.

“As part of our commitment to sustainability and economic development, we are facilitating access to affordable financing for industries willing to adopt cleaner energy solutions,” the central bank stated.

The initiative, launched in coordination with the environment ministry, focuses on helping brick factories transition from heavy fuel oil to liquefied gas. The bank has raised the loan ceiling to 500 million dinars ($382,000) per factory under its renewable energy program, with funds available through licensed Iraqi banks. “This financial support will enable businesses to reduce their environmental footprint while maintaining productivity,” the statement added.

In a related move, the central bank allocated 1 billion dinars ($764,000) to the Environment Protection and Improvement Fund to help address air pollution and environmental challenges. “The financial sector plays a crucial role in supporting Iraq’s transition to a green economy,” it emphasized.

Brick factories, particularly in Baghdad’s Nahrawan and Al-Mada'in districts, have been identified as major pollution sources due to their reliance on heavy fuel oil. “These factories release significant amounts of carbon dioxide and airborne particles that contaminate water, soil, and vegetation,” the statement noted.

The Environment Ministry welcomed the initiative, describing it as aligned with government policies. “Reducing emissions from industrial sources is a priority for us,” an environment ministry official told Shafaq News. “Financial incentives like these will encourage businesses to invest in cleaner technologies.”

In October 2024, the Industry Ministry issued a directive requiring all brick factories to switch to gas within 18 months. “We recognize the challenges businesses face in this transition, which is why access to financing is essential,” an industry ministry spokesperson explained. “The shift to cleaner fuels is a necessary step toward improving air quality and public health.”