Iraq signed on June 24 a deal with Abu Dhabi's state-owned Masdar, also known as the Abu Dhabi Future Energy Company, to produce 2 gigawatts of solar energy in southern Iraq at a cost of $1 billion. The deal is Iraq's first approach to adopting clean energy in order to reduce pollution, diversify energy sources, and curb reliance on Iranian electricity and gas.

Iraq is one of the most polluted countries, ranking 12th in the world due to the burning of gas associated with oil production and other emissions, according to the Numbeo classification. Prime Minister Mustafa al-Kadhimi’s government has taken a series of measures to reduce pollution as part of the comprehensive economic reform program called the White Paper. Measures include Iraq’s accession to the Paris Climate Agreement, reliance on clean energy in the production of electricity, exempting electric cars from taxes, and forcing the Investment Authority to offer investment opportunities to establish nuclear power plants, solid waste treatment plants that convert waste into energy and solar power plants.

The chairman of the Ministerial Council for Energy, Minister of Oil Ihsan Abdul-Jabbar, explained Iraq's plan to invest in alternative energy and conclude deals with a group of foreign companies. In a session he attended at the Iraqi parliament on June 29, he noted that the current contracts concluded to invest in clean energy amount to 7,000 megawatts with Emirati, Chinese, Norwegian and other international companies. He indicated Iraq aims for energy production of 12,000 megawatts by the year 2030.

Abdul-Jabbar said some of the power stations to be constructed under these deals will enter service during 2022 because Iraq is determined to change the management of its energy. “We have discussions with other companies, such as Saudi ACWA Power, to increase investment in clean energy,” he said. “Iraq has provided sovereign guarantees to investors represented by the Ministry of Electricity buying energy produced from solar plants. Iraq has a plan to gradually replace fossil energy with solar energy, which has a much lower cost. It aims for a national solar energy production of 20%.”