14 July 2025
Researcher : Dr. Didar Abdulkarim Rahim
Iraq faces acute climate and economic risks: rising temperatures, recurrent droughts, and water shortages are already threatening livelihoods and food security. Its oil-dependent economy is highly vulnerable to external shocks, with limited fiscal space to absorb climate-related costs. The 2025-2030 Pathways for Climate Investment Plan (CIP) provides a roadmap for a just transition; its vision is to facilitate a smooth transition to low-carbon energies while diversifying its economy stepwise in a climate-resilient society. To achieve this vision, Iraq must implement significant governance reforms and strategic planning, enhance institutional capacity, expedite the energy transition, and collaborate with regional partners. Recommendations emphasise the integration of climate considerations into fiscal policy, the enhancement of public institutions and climate units, the modernization of the oil and gas sector, the expansion of renewable energy and water-efficient agricultural practices, and the phased mobilization of both domestic and international financial resources. The policy framework underscores the importance of inclusive stakeholder engagement, involving government, the private sector, civil society, and communities to guarantee equitable and transparent implementation. This paper presents the rationale, strategic priorities, and phased implementation plan that aligns with VFSS objectives of good governance and sustainability. The conclusion emphasises the necessity for Iraqi leaders and international partners to collaborate on a green investment agenda to ensure a stable and prosperous future.
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