Jordan—Green Transition Facility

The Central Bank of Jordan’s Green Finance Strategy 2023–2028 seeks to strengthen climate -risk management, introduce appropriate regulatory and supervisory frameworks, and increase green financing in the financial sector by 30 percent. However, financial institutions and businesses still face practical constraints in identifying, preparing, financing, and monitoring eligible green investments.

The Green Transition Facility combines four mutually reinforcing elements—a European Investment Bank (EIB) senior loan, a partial portfolio guarantee, technical assistance, and investment grants—to help Jordan’s financial institutions expand green lending while enabling Jordanian businesses to invest in climate mitigation and adaptation. Jordan is the first country in the European Union’s Southern Neighbourhood where the facility is being deployed.

Under this project, DAI provides technical assistance to participating financial institutions and prospective borrowers. We help financial institutions apply EIB eligibility and reporting requirements, develop and market green financial products, identify and assess viable investments, and strengthen the internal systems and capabilities required to sustain green lending. We also assist businesses to understand available financing options, assess potential investments, and prepare bankable green projects that contribute to Jordan’s transition toward a low-carbon, climate-resilient economy.

Sample Activities

• Train participating financial institutions to apply EIB green loan eligibility criteria and reporting requirements.
• Strengthen institutional processes, tools, policies, and staff capabilities for green lending.
• Develop and market green financial products tailored to smaller businesses and integrate available investment incentives.
• Identify and screen prospective green investments and help businesses prepare bankable projects.
• Provide energy audits, decarbonization advice, financial literacy training, and other technical support to prospective borrowers.
• Promote access to green finance for women-owned and women-led businesses.
• Strengthen monitoring and reporting of energy savings, greenhouse gas reductions, and other investment results.