BAGHDAD: Iraq, a top oil exporter battered by climate change impacts, must diversify its economy and pursue a “greener growth model,” the World Bank said on Tuesday.
In a report presented to authorities in Baghdad, the Washington-based institution said $233 billion must be invested by 2040 to allow Iraq to embark “on a green growth path.”
The mostly desert country, after decades of war and turmoil, is also suffering worsening climate change shocks from drought and water scarcity to rising temperatures.
Iraq’s infrastructure is crumbling while its economy remains heavily dependent on oil, which accounts for 90 percent of government revenue.
“Iraq faces the challenge of moving away from total oil dependence toward a more diversified, private sector-led economy that creates jobs and builds human capital while building resilience to climate change,” said Ferid BelHajj, World Bank regional vice president for the Middle East and North Africa.
Citing water shortages, desertification and air pollution, BelHajj said that “Iraq has enough financial resources to manage these challenges.
“The question is how to ensure that these financial resources are made available for new policies to tackle environmental challenges, and how to do it in an efficient way.”
