Shafaq News/ Iraq will launch its first solar-powered electricity generation plant by the end of 2025, Oil Minister Hayan Abdul-Ghani announced on Wednesday.
Speaking at the inaugural of the first Conference on Carbon Economics in Iraq, held in Baghdad, Abdul-Ghani emphasized the country’s growing awareness of the global climate crisis and the fast-evolving landscape of the energy sector.
He stressed that reducing carbon emissions presents not only an environmental imperative but also a real opportunity to attract financing, boost technological development, and stimulate investment—particularly through carbon markets and carbon bonds.
“We have already taken concrete steps in this direction,” Abdul-Ghani stated, highlighting ongoing flare gas recovery initiatives and Iraq’s commitment to ending routine gas flaring by 2029. He also noted ongoing collaborations with international markets and global partners aimed at identifying and implementing emission reduction strategies.
Under the framework of the Paris Agreement, Iraq had pledged to cut its greenhouse gas emissions by 2% by 2023. According to the minister, this target has already been surpassed through a pioneering project in Basra.
Abdul-Ghani revealed that several agreements have been signed with energy companies to halt gas flaring, with expectations that these initiatives will reduce thermal emissions by over 23%—exceeding Iraq’s original Paris Accord commitment more than tenfold.
Held under the patronage of Prime Minister Mohammed Shia Al-Sudani, the conference drew regional and international stakeholders, including diplomats and environmental experts. Minister of Environment Nizar Mohammed Saeed noted that the event aims to diversify national income sources and strengthen Iraq’s green economy by tapping into carbon markets and unlocking new opportunities in climate finance.
The carbon economy is built on a market-based framework that assigns value to emissions reductions. Tools such as carbon pricing, carbon credits, and emissions trading enable governments and companies to monetize their climate efforts. For oil-reliant economies like Iraq, investing in carbon market mechanisms offers a strategic pathway to diversify revenues, attract global investment, and align with international climate commitments.