Decarbonization of Iraq's Petroleum Industry: Challenges and Opportunities

Although Iraq is considered the second-largest oil exporter in the OPEC, it is also considered one of the countries most affected by climate change. The Iraqi government seeks to find a balanced model between its exports of fossil fuels and its international commitments to environmental preservation. This study discusses Iraq's efforts at decarbonization in depth. The study showed that Iraqi efforts diversified by adopting an ambitious plan to generate 12,000 MW of solar energy units and reduce the carbon footprint through several pioneering projects, such as reducing 500,000 tons in the Flare Gas Recovery (FGR) project in Baghdad and reducing 1.8 million cubic meters of methane gas in Basra by adopting the Vapor Recovery Units (VRU) project. Additional efforts are being made to reduce methane emissions through the Leak Detection and Repair (LDAR) Project in Basra as well. In addition, the study showed that Iraq adopted Model AM0019 for the purpose of fulfilling its obligations towards the United Nations Framework Convention on Climate Change (UNFCCC), specifically through the Clean Development Mechanism (CDM). The carbon credits that Iraq seeks to adopt are based on three axes: Bi-lateral according to Verra and Global Standard (GS) and developing the Nationally Determined Contribution (NDC) with planning to achieve the requirements of Internationally Transferred Mitigation Outcomes (ITMOs). Finally, the study showed that Iraq seeks to achieve zero gas flare emissions by 2027. The current article is a paper of importance to researchers and investors alike in the field of decarbonization in Iraq.