1.Background
Iraq Vision 2030 integrates with the environmental goal to create a clean, safe, and sustainable environment for the current and future generations. Iraq ratified the Paris agreement on January 14, 2021. President Saleh said at the United Nations Climate Ambition Summit: This move marks the Iraqi government’s intention to shift from relying heavily on oil to more renewable energy sources. Iraq is wrapping up its NDC to define Iraq’s strategic objectives and commitments towards climate change adaptation and mitigation.
Iraq plans for transition towards green economy. More than ever before, Iraq recognises that a healthy and sustainable economy is that the diversified and green one, this includes renewable energy and environmentally-sound technologies and enhance the resilience of communities most vulnerable to climate change.
According to the NDC, Iraq aims to achieve reduction period between 1% and 2% of its total emissions from 2021 to 2030 through the national effort and 15% subject to the international financial and technical support. Iraq aims to develop its National Appropriate Mitigation Actions (NAMAs) with priority to the electricity sector by investing in renewable energies of up to 12 GW based on the Cabinet’s economic decisions for 2021.
Accounting for NDC mitigation targets is required under the Paris Agreement (Article 4.13) and can assist Parties in understanding their own and others’ mitigation targets as well as individual and collective progress toward mitigation goals. As part of the core mandate of Ministry of Finance (MOF) is the design and implementation of sound macro-economic policies and public finances, the economic and social impacts of climate change are becoming increasingly relevant for the wellbeing of the society. The MoF needs to strengthen its involvement in the preparation and delivery of NDC targets.
Iraqi MoF needs to create an effective and achievable NDC by providing reliable costing and macroeconomic assessments of climate interventions. Macroeconomic analysis can improve decision making for optimizing economic benefits and mitigating risks from climate change. Costing gives a more precise idea of the financial resources required to implement the different programs and interventions, the feasibility within macro-fiscal constraints, and a strong basis for budget allocation negotiations. These tools improve the chances of NDCs being designed as realistic and achievable commitments, and can attract greater levels of support.
It is essential for institutionalising NDCs into national fiscal systems. Monitoring financial flows or tagging expenditures are common tools and link climate throughout the budget cycle. MOF can pursue a variety of entry points and phased approaches to suit their economic situation when mainstreaming their NDC.