ILO News – Baghdad, Iraq – The International Labour Organization (ILO), in collaboration with the Iraqi Federation of Industries, organized a two-day workshop on 27–28 May 2025 in Baghdad. The workshop is part of ongoing efforts to address the challenges of the informal economy and promote enterprise formalization within Iraq’s labour market.Informality remains a major challenge in Iraq, with more than half of the workforce engaged in informal employment, particularly in sectors such as construction, agriculture, manufacturing, and retail trade. According to ILO estimates, approximately 5.73 million Iraqis work without formal contracts, social protection, or decent working conditions.The workshop served as a dialogue platform that brought together representatives from the Iraqi Federation of Industries, the Kurdistan Region Chambers of Commerce Union, and the Erbil Chamber of Commerce and Industry. Discussions focused on identifying root causes of informality, exploring strategies for formalization, and strengthening cooperation with employers to advance decent work and sustainable development.The agenda addressed the impact of informality on workers and enterprises, examined legal and regulatory reforms, and explored incentives and support services that could help enterprises transition to the formal economy.Adel Akkab, President of the Iraqi Federation of Industries, stated: “The informal economy is a major obstacle to sustainable development. Integrating it into the formal economy requires legal reforms, simplified registration procedures, and safer working environments. While the transition is challenging, it is essential for building a more balanced and resilient economy.”In her remarks, Maha Kattaa, ILO Country Coordinator in Iraq, said: “We are pleased to welcome our partners from the Iraqi Federation of Industries and the Kurdistan Chambers of Commerce. Enhancing cooperation with employers is vital to advancing social protection and enabling a transition to a more inclusive and formal economy in Iraq.”José Manuel, Senior Employers’ Specialist at the ILO, added: “This workshop represents a significant step in supporting employers’ organizations to tackle informality and promote decent work. Together, we can develop practical solutions that foster enterprise growth and facilitate sustainable formalization.”The workshop was grounded in ILO Recommendation No. 204 on the transition from the informal to the formal economy, emphasizing the need for integrated strategies to address the structural drivers of informality in Iraq, with a particular focus on the challenges faced by small and medium-sized enterprises in improving their formal status and working conditions.This initiative marks an important step towards building consensus and strengthening employers’ capacity to confront informality and enhance the business environment in Iraq.The workshop is part of the PROSPECTS project, a global partnership aimed at improving access to education, social protection, and decent work for host communities and forcibly displaced persons. Supported by the Government of the Netherlands, the partnership brings together the International Finance Corporation (IFC), the International Labour Organization (ILO), the UN Refugee Agency (UNHCR), the UN Children’s Fund (UNICEF), and the World Bank. It seeks to transform how governments and partners, including the private sector, respond to forced displacement situations., filtered_html

As part of his visit to Baghdad, Iraq, the Director-General of the Food and Agriculture Organization of the United Nations (FAO), Mr. QU Dongyu, together with key Iraqi ministries, today launched the Green Climate Fund (GCF)-funded project titled "Strengthening Climate Resilience of Vulnerable Agricultural Livelihoods in Southern Iraq" (SRVALI)". The announcement took place on the sidelines of the 5th Baghdad International Water Conference, in the presence of senior government officials, international partners and United Nations representatives.With a total investment of USD 39 million, the SRVALI project aims to directly benefit rural households in the governorates of Karbala, Najaf, and Muthanna, regions increasingly affected by drought, land degradation, and water scarcity. The project includes a generous co-financing from the Government of Canada and the Swedish International Development Cooperation Agency (SIDA)Mr. Dongyu emphasized that the SRVALI project is a testament to Iraq's strong national ownership, inter-ministerial coordination, and efforts to delivering sustainable solutions to those most affected by climate change. He commended the Ministries of Environment, Water Resources, Planning, and Agriculture for their exemplary partnership throughout the project's development.Iraqi Minister of Environment, H.E. Dr. Halo Al-Askari, highlighted that addressing climate change is a top priority for the Iraqi government, integral to the transition towards a sustainable green economy and achieving the Sustainable Development Goals, including the eradication of hunger and poverty.The Minister of Water Resources, H.E. Dr. Aoun Diab Al-Abdullah, stated that the project represents a significant step toward achieving development goals through field interventions and sustainable infrastructure development. He affirmed the Ministry's full commitment to supporting the project's efficient implementation in collaboration with all relevant stakeholders, ensuring benefits for Iraq's water and agricultural sectors.The initiative encompasses upgrading irrigation systems to enhance water use efficiency, deploying solar-powered irrigation solutions, reclaiming degraded farmlands, and promoting sustainable land and water management practices. Additionally, it focuses on strengthening Water User Associations, empowering rural women and youth, and introducing digital tools and early warning systems to mitigate risks and build resilience.Minister of Agriculture, H.E. Eng. Abbas Jabr Al-Maliki, noted that the project's launch results from extensive collaboration with FAO and the GCF, significantly contributing to combating climate change and advancing Iraq's agricultural strategy goals.Ghulam Mohamed   Isaczai,   UN Deputy Special Representative, Resident Coordinator, and Humanitarian Coordinator in Iraq, remarked that establishing Iraq’s first-ever GCF financing is a significant achievement in national climate finance, reflecting Iraq’s dedication to building climate resilience, enhancing food security, and transitioning towards a more sustainable and inclusive economy.Mr. Dongyu concluded by highlighting that the event's timing with the Water Conference underscores that climate resilience begins with water. He reiterated FAO's commitment to supporting digital water management through tools like the FAO WaPOR platform and promoting community-level water governance through climate-smart solutions.This event also marks Iraq’s growing prominence on the international stage, showcasing leadership and vision through initiatives such as the Hand-in-Hand Initiative, the One Country One Priority Product platform, and the World Food Forum., filtered_html

This initiative falls within the Ministry’s broader efforts to align employment policies with social protection and climate change strategies, through investment in labour-intensive projects that can create real and impactful job opportunities, particularly for vulnerable groups in the labour market, including job seekers registered in the Ministry of Labour and Social Affairs’ database and beneficiaries of the social protection network.In his opening remarks, Maher Hammoud Johan, Technical Deputy Minister at the Ministry of Planning, emphasized the importance of public works for Iraq. He explained that the programme is being designed to support the achievement of two key national policy objectives: Goal 4 on expanding solar energy systems and Goal 9 on sustainable afforestation, both of which contribute to emissions reduction and long-term climate resilience.From the ILO side, Maha Kattaa, ILO Country Coordinator in Iraq, presented a strategic overview of the technical cooperation with the Iraqi government, particularly on piloting operational models within the public works framework. She highlighted the reforestation project in Duhok, which generated more than 27,000 workdays with a strong focus on engaging vulnerable populations, Kattaa also noted that the ILO, in coordination with the Ministry of Planning, is working on a National Public Works Roadmap, expected to be announced following consultations with relevant ministries, workers' and employers' organizations.She emphasized that the government’s proposal to afforest 6,228 dunams across 14 governorates presents a strategic opportunity to launch a programme that could generate at least 15,000 green jobs over the next five years. The programme aims to integrate public works with vocational training, entrepreneurship, and social protection, forming a cohesive model for sustainability and efficient public spending. She affirmed the ILO’s readiness to provide technical support by developing unified implementation tools, including Standard Operating Procedures (SOPs), a monitoring and evaluation system, and coordinated governance structures, while also exploring green financing partnerships.The workshop concluded with a set of practical recommendations, including, Finalizing the National Roadmap for the Public Works Programme, covering design, financing, governance, and implementation modalities; Launching pilot projects in solar energy, afforestation, construction, and digital infrastructure; Building the capacities of local actors, partner institutions, and beneficiaries; Strengthening partnerships with civil society and the private sector.Participants unanimously affirmed that the Public Works Programme represents a central pillar for tackling unemployment, stimulating economic recovery, and fostering social cohesion. They stressed that its success would depend on coordinated efforts among key ministries, particularly Planning, Labour, Agriculture, Oil, Industry, Construction and Housing, alongside the technical support of international partners, most notably the ILO.This workshop is part of the "Building Equitable and Inclusive Transformation (BEIT)” project is an EU-funded initiative that aims to drive economic growth by creating decent job opportunities, advancing Iraq's affordable and sustainable housing initiatives and strengthening the construction sector. For media inquiries: ILO Iraq Communications TeamEmail: muhi@ilo.org, filtered_html

ERBIL (ILO News) – As part of broader efforts to promote a just transition to a green economy and expand decent work opportunities in Iraq, the International Labour Organization (ILO), with funding from Italy through the Italian Agency for Development Cooperation (AICS) and in collaboration with the International Training Centre of the ILO (ITCILO) and the Central Bank of Iraq (CBI), conducted a five-day training workshop in Erbil from 11 to 15 May 2025. Under the title “Making Green Microfinance Work: Managing Product Diversification,” the training aimed to equip financial institutions with the skills and tools needed to design green financial products that serve sustainable small and medium-sized enterprises (SMEs) across the country.The training is part of the ILO’s flagship project “Towards More and Better Employment through Enhanced Support to Private Sectors in Southern Iraq – With a Focus on Green Business,” and it is a part of Team Europe Initiative for Iraq “TAUFIQ initiative” and represents a critical step toward advancing Iraq’s transition to a green economy and strengthening inclusive financial systems.The training was designed to empower Iraq’s financial institutions with the expertise needed to develop and diversify financial products that support green businesses. Participants from the Central Bank of Iraq (CBI), commercial banks, governmental banks, and microfinance institutions (MFIs) gained valuable insights into how they can tailor their financial offerings to meet the unique needs of businesses committed to sustainability. By strengthening this capacity, Iraq’s financial institutions are now better positioned to foster the growth of green enterprises and contribute to long-term economic and environmental sustainability.Throughout the training, participants explored a range of critical topics, including strategies for new market development, where they examined ways to identify and cultivate new green market segments. Product strategy sessions focused on the creation of green loan products, savings schemes, insurance offerings, and non-financial services designed to support SMEs engaged in sustainable practices. The Training programme also addressed communication and client relationship strategies, as well as methodologies for tracking and evaluating the impact of green finance products.The training also delved into global and regional green microfinance trends, providing participants with insights into the latest research and developments in the field. Discussions included strategies for product diversification, aligning financial services with Environmental, Social, and Governance (ESG) principles, and creating outreach initiatives that encourage SMEs to adopt green finance solutions. By combining technical knowledge with practical application, the training aimed to build long-term institutional capacity and promote a more sustainable financial ecosystem in Iraq.In this context, Maha Kattaa, ILO Country Coordinator for Iraq, stated:  “Our partnership with the Central Bank of Iraq, the International Training Centre, and all stakeholders in Iraq represents a strategic step toward building a robust green finance ecosystem. It aligns with Iraq’s green growth strategy, which promotes environmentally responsible practices and the development of sustainable businesses. These efforts also contribute to the creation of decent work by empowering financial institutions to support environmentally and socially oriented small and medium-sized enterprises—fully in line with the ILO’s vision of promoting social justice and decent work for all.”Dr. Ammar Khalaf, Deputy Governor of the Central Bank of Iraq, affirmed that “the partnership with ILO in this pivotal initiative is fully aligned with Iraq’s vision to modernize its financial sector. By promoting green finance, we are not only supporting business growth but also contributing to Iraq’s environmental and sustainability goals. This partnership equips financial institutions with the necessary tools to build a more sustainable economy, in line with Iraq’s strategy to achieve sustainability under the 2030 Sustainable Development Agenda. These efforts are also consistent with the Environmental, Social, and Governance (ESG) Guidelines issued by the Central Bank in September 2024, which mandate banks to comply with environmental sustainability standards.”This activity forms a core component of the broader ILO project” project “Towards More and Better Employment through Enhanced Support to Private Sectors in Southern Iraq – With a Focus on Green Business,”. which operates across three interrelated levels, each directly connected to the training initiative. At the macro level, it supports the development of evidence-based policy recommendations for micro, small, and medium-sized enterprises (MSMEs) through an assessment of the business environment using the ILO’s Enabling Environment for Sustainable Enterprises (EESE) tool, which informs policies for green and sustainable enterprise development. At the meso level, the training builds the capacity of banks and microfinance institutions to design green finance products, while also strengthening business intermediary organizations to deliver continuous skills development. At the micro level, the training complements the SIYB and Financial Education programs by enabling youth and small business owners in green sectors to access financial services—supported by the Central Bank of Iraq’s 4 trillion-dinar initiative to provide affordable financing to MSMEs.Together, these efforts represent a comprehensive approach to advancing green enterprise development in Iraq. By equipping financial institutions with the tools and capacities needed to support environmentally sustainable businesses, the initiative lays a strong foundation for inclusive economic growth and decent job creation. In the next phase, the International Labour Organization, the Central Bank of Iraq, will provide targeted technical support and guidance to participants in order to develop and implement green lending products that address the needs of environmentally impactful small and medium-sized enterprises across the country, while also strengthening financial inclusion and accelerating the transition to a sustainable economy., filtered_html