The role of banking policies in stimulating the growth of the physical bases of the green economy in Iraq after 2023

Abstract

The study examines the vital role that banking policies play in stimulating and supporting the investment trend towards the modern energy sources sector through and through the (monetary empowerment) policy, that is, providing soft loans at negligent or symbolic interest rates to investors in this sector.

Our research focuses on analyzing the objective reasons for the shift towards a green economy in Iraq, to avoid falling into more environmental and economic crises resulting from reliance on fossil energy sources to generate national income at increasing rates, especially since such harmful results have become visible and do not require evidence to prove. Its growth and accumulation rates have increased, and it has been represented by environmental pollution and the chronic and malignant diseases it causes, as well as climate instability, water scarcity and its harmful repercussions on agricultural activity. This study is based on the hypothesis that: -

The importance of switching to clean energy sources lies in the possibility of generating new sources of income, which contributes to diversifying economic activity and overcoming a single obstacle and its negative consequences, as well as reducing the circle of environmental pollution and reducing its harmful repercussions on the reserves of available natural and human resources, based on the developmental role assigned to national banks that Approval policies that encourage investment must be designed to focus investments in this vital sector.

We believe that building the material foundations of the green economy is neither a wish nor an emotional decision, but rather an organized and determined effort, in which priorities, costs and requirements must be determined, which can be summarized as “financing” first and technology second, and here the role of banks is highlighted in accelerating the progress towards the green economy at a rapid pace. Facilitating financing sources by providing loans with incentive interest and prolonging repayment periods may make this sector attractive and tempting for investors, but to complete the conditions for investment “attraction,” the study of the technological framework of this economy must be circulated in Iraqi universities, and the youth who desire it must be absorbed and prepared and comprehensively presented to the labour market. Sustainable. In general, to cover this vital topic, we decided to distribute its study into four axes: The first axis: the shift towards a green economy, reasons and mechanisms.

The second axis: Alternative opportunities to invest in the traditional resource base during and after the transition towards a green economy.

The third axis: Conditions for the transition towards a green economy in Iraq and its economic and social consequences.

Fourth axis: The contribution of banks in strengthening the green economy in Iraq.

The study concluded with a set of scientific conclusions, the most important of which are:

1- The move towards a green economy achieves the three dimensions of sustainable development (economic, social and environmental), reduces greenhouse gas emissions (carbon), preserves the environment from pollution, confronts the challenges of climate change, and provides more clean job opportunities (green jobs).

2- The green economy achieves economic diversification by replacing the fossil economy that depends on oil, natural gas and shale, which is subject to depletion in the future and the long term leads to the depletion of resources and the loss of the rights of future generations.

The study recommended a set of recommendations, the most important of which are:

1- Encouraging banks to support renewable energy projects and environmentally friendly technology, and urging them to continue their ongoing efforts in the field of financial inclusion.

2- Motivating private banks to support the private sector investing in the fields of alternative energy and finding ways to achieve the partnership with it.