EBRD, GCF, EU to provide $40 m to promote greener economy in Jordan

EBRD, GCF, EU to provide $40 m to promote greener economy in Jordan
06 / 12 / 2022
By Marwa Nassar - -

The European Bank for Reconstruction and Development (EBRD), the European Union (EU) and the Green Climate Fund (GCF) will provide a total of $40 million to promote greener economy in Jordan.

The three institutions have launched the Green Economy Financing Facility program (GEFF) in Jordan in an effort to support the country’s transition to a greener economy.

Jordan is the latest country to join the GEFF program in the southern and eastern Mediterranean (SEMED) region.

Under the program, $40 million will be secured in financing to local financial institutions, such as banks, microfinance institutions and leasing companies, to on-lend to the private sector for investment in high-performance technologies and services. In 2022 to date, three GEFF facilities, worth a total of $ 22 million, have been signed with Cairo Amman BankEtihad Bank and the Microfund for Women.

Demand for Jordan’s key but scarce natural resources – water and energy – is growing continuously due to climate change and rapid population growth. The country’s population totaled 11.1 million in 2021. The GEFF program is designed to address significant climate mitigation and adaptation challenges by encouraging micro-, small and medium-sized enterprises (MSMEs) and households to invest in green and innovative technologies that promote energy, water and material efficiency solutions alongside renewable energy,

At the program launch, the EBRD presented its holistic approach to supporting green investments through a combination of financing, investment grants and technical assistance for partner financial institutions and end clients through the EBRD GEFF program. It also presented case studies from the program in the SEMED region. Representatives from the public and private sectors shared their views on challenges related to green financing and put forward ideas on how to catalyze green investments in Jordan.

The event was attended by Jordanian Environment Minister Muawieh Radaideh, EU Ambassador to Jordan Maria Hadjitheodosiou, EBRD Managing Director for SEMED Heike Harmgart, EBRD Director for the eastern Mediterranean region Philip ter Woort and EBRD Managing Director for Financial Institutions Francis Malige.

Philip ter Woort said: “We are very proud that, with EU and GCF support, we are all working to build a greener and more resilient economy in Jordan. I am confident that, jointly with our partner financial institutions, we will be able to share many more impactful success stories related to private sector investments in green technologies in the years to come.”

Ambassador Maria Hadjitheodosiou, said “The European Union is committed to fighting climate change and responding to its challenges through ambitious policies within Europe and in its Neighborhood. Supporting the establishment of the EBRD Green Economy Financing Facility (GEFF) in Jordan was an obvious choice for the EU, since institutional set-up cannot be completed without offering sustainable financing opportunities to the private sector. The EU has contributed €4.5 million to the GEFF facility, which provides possibilities for investment financing that addresses climate change needs, and provides new economic opportunities in high-performance technologies and services supporting Jordan’s green economy transition.”

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