Iraq Moves to Develop Carbon Economy as Second Financial Resource

Iraqi Ministry of Oil's Media

Iraq’s Minister of Environment, Halo Al-Askari.

Iraq’s Minister of Environment, Halo Al-Askari, confirmed on Saturday, 7 June 2025, that the carbon economy is set to become the country’s second financial resource. 

He confirmed that the Ministry of Environment is actively working to enhance state revenues by investing in this emerging sector.

In a statement to the Iraq's state media (INA), Askari said: “In line with Prime Minister Mohammed Shia' Al-Sudani’s directives to maximise and diversify national revenues, the Ministry of Environment has established the National Carbon Economy Company.”

He noted that the company is collaborating with both national and international bodies to attract global investment into Iraq’s carbon economy sector.

Askari emphasised that “investment in the carbon sector will provide Iraq with a second source of income after oil,” and added that “Iraq is currently undergoing a political, economic, and social renaissance. The Ministry of Environment is contributing to this progress by diversifying revenue streams, in step with other ministries.”

As the world moves towards an "oil-free future"—a scenario in which fossil fuels, particularly oil, are no longer the dominant source of energy, transportation, and raw materials—Iraq, a country with an economy built on oil sales, is seeking to diversify its economy.

The oil-dependent nation is beginning to pivot towards carbon economics as an alternative revenue stream, with the aim of establishing it as the country's second-largest financial resource after oil.



PUKMEDIA