On Sunday, the Green Observatory of Iraq held the Central Bank guilty for undermining the project of employing solar panels in houses to generate electrical energy, citing the criteria of its initiative for the loans it distributes, and asked for the program’s success to be amended in certain areas.
The Observatory said in a press statement today, “More than a year has passed since the Central Bank’s initiative to support renewable energy, which aims to support sustainable solutions and reduce the effects of climate change,” noting that “the initiative has declared its failure since its launch due to the technical specifications that were set, such as solar panels, batteries, and others.” “.
He said, “The percentage of banks financing these projects has made many of them refuse to grant loans to citizens,” suggesting “amending the paragraphs of the initiative so that the middle-income segment can borrow.”
The observatory proposed, “developing an option with lower specifications for solar energy equipment according to what is available in the local market, in addition to the current initiative.”
He pointed out that “amending the borrowing mechanism must be by granting solar energy companies permissions to import them or with appropriate interest to banks, provided that their harm is to the borrower.”
In July 2021, the Central Bank of Iraq decided to encourage the use of renewable energy production tools, and to collaborate with the Supreme Lending Committee to ensure that a percentage of the electrical energy generated from renewable energy sources (solar panels) is installed in the residential investment complexes benefiting from the initiative.
The Central Bank of Iraq set regulations for funding renewable energy production systems in early March 2022.
The bank explained in a statement at the time that this initiative is in line with the state’s directives to adhere to the Paris Climate Conference decisions, as the Central Bank launched its initiative to switch to clean energy within this framework, where a committee was formed headed by the Deputy Governor, and its membership included representatives from the Ministries of Environment and Electricity, as well as the Central Organization for Standardization. And qualitative control, as well as private sector representatives, specialists, and investors.