Iraq blocks fossil fuel phase-out proposal at COP 29

Shafaq News/ Iraq’s delegation successfully blocked proposals to phase out fossil fuels during the 29th Conference of the Parties (COP 29) on climate change, an official from the Ministry of Environment said on Sunday.

Yousif Muayad, Director of the Climate Change Directorate at the ministry, stated that “Iraq ensured the exclusion of fossil fuel phase-out discussions after the conference was extended by two days,” adding that COP 29 approved key provisions, including Article 6 of the Paris Agreement on carbon markets and a new collective quantitative goal for climate finance.

Majid Shankali, Chairman of the Parliamentary Health and Environment Committee, reiterated, last week, Iraq’s stance against phasing out fossil fuels, citing the country’s heavy dependence on oil revenues, emphasizing the importance of diversifying Iraq’s economy and advancing renewable energy initiatives to address climate change without jeopardizing economic stability.

Earlier, Muayad also revealed that Iraq received $30 million from the Green Climate Fund during the conference to “support Iraq’s efforts to address climate change challenges.”

For Iraq, OPEC's second-largest oil producer, the proposed phase-out of fossil fuels poses economic and infrastructural challenges. Over 90% of Iraq’s GDP and a substantial portion of government revenues are tied to crude oil exports. A rapid shift away from fossil fuels could destabilize public services and derail infrastructure projects.

Transitioning to renewable energy would require extensive reforms to modernize Iraq’s power sector, which is heavily reliant on fossil fuels.