Baghdad: The Association of Iraqi Private Banks has signed a strategic memorandum of understanding with the Association of Energy Engineers (AEE) to facilitate the transition of the banking sector towards a green economy, alongside advancing the energy sector and its infrastructure in Iraq.

According to National Iraqi News Agency, the signing ceremony was held in Washington, D.C., with Wadih Al-Hanzal, Chairman of the Association of Iraqi Private Banks, and William Kent, Executive Director of AEE, representing the respective parties. This collaboration underscores the pivotal role of Iraq's banking sector in financing and shaping policies for renewable energy and sustainable infrastructure projects.

The memorandum is a crucial step towards supporting financing for clean solar energy initiatives. It also paves the way for integration with international financial bodies, such as the European Bank for Reconstruction and Development (EBRD), ensuring the necessary support to tackle challenges within Iraq's national electricity grid and enhance its operational efficiency.

The partnership aims to launch programs focused on developing institutional and technical capacities, along with transferring advanced knowledge and technology through internationally recognized certifications. It provides a framework for technical consultations with ministries, municipalities, and financial institutions to foster investments in carbon emission reduction and the implementation of environmental, social, and governance (ESG) principles. This initiative aligns with Iraq's vision for sustainable economic growth and energy security.