Amman: EIB Global, the development arm of the European Investment Bank (EIB), in partnership with the Central Bank of Jordan (CBJ), announced the launch of the Greening Financial Systems technical assistance program in the country. The program is designed to support the Central Bank of Jordan in promoting a transition to a net-zero, climate-resilient financial system. It aims to assist Jordanian commercial banks in integrating climate risk assessment into their operations and adopting greener business models, thereby improving access to finance for businesses investing in sustainable technologies.
According to Jordan News Agency, the program is a collaborative effort with funding from Germany through its International Climate Initiative (IKI) and contributes to the NDC Partnership, a global coalition working towards the Paris Agreement goals. The initiative places Jordan among a group of countries, including Ethiopia, Kenya, Nigeria, and Georgia, participating in similar programs. The partnership aims to embed climate risk into regulatory frameworks and accelerate sustainable finance in Jordan.
Adel Al-Sharkas, Governor of the Central Bank of Jordan, emphasized the need for a sustainable financial sector that channels investment into green projects and supports the country's transition to a low-carbon economy. EIB Vice-President Gelsomina Vigliotti highlighted the role of the EIB in supporting Jordanian banks to lead the green transition, emphasizing the importance of local banks and financial institutions in accelerating climate action.
The EIB has been a strong supporter of Jordanian businesses, providing over £1 billion in loans and guarantees to cover loan portfolios. The new program will further this support by assessing the financial sector's capacity for climate risk management and green financing, helping the Central Bank of Jordan develop policies for climate risk management.
Guido Kemmerling, Charg© d'affaires of the German Embassy to Jordan, expressed Germany's support for the partnership, recognizing the Central Bank of Jordan's role in transforming the country's economy towards sustainability. The program aims to translate green policies into practical actions, contributing to a substantial and lasting response to climate change.