The Energy Transition in Iraq

Iraq is undergoing a pivotal energy transition, working to diversify its energy mix while maintaining its reliance on petroleum and natural gas. While hydrocarbons remain central to the country’s economy, Iraq is increasingly investing in renewable energy solutions, particularly solar and hydropower, to enhance energy security and reduce carbon emissions. However, the country’s energy transition is constrained by political instability, security concerns, and inadequate infrastructure. Realistic ESG integration is emerging as a critical focus, with Iraq starting to address ESG factors in energy policies. Although ESG reforms remain in their infancy, the country is making incremental progress in establishing sustainability frameworks, promoting responsible resource extraction, and engaging in regional cooperation for energy security. Iraq is working towards better environmental management, greater transparency, and improved governance in its energy sector. The integration of clean energy technologies and energy diversification is essential for Iraq’s long-term energy strategy, aiming to reduce dependence on fossil fuels. While overcoming governance and infrastructure challenges is crucial, Iraq’s vast energy resources and growing ESG awareness offer the potential for a more balanced and sustainable energy future. As global stakeholders encourage reform, Iraq is positioning itself for a more diversified and responsible energy sector.