Amman, Sep 10 (Petra)- 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 will support the Central Bank of Jordan as it creates an environment that promotes the transition to a net-zero, climate-resilient financial system and will help Jordanian commercial banks integrate climate risk assessment into their operations and green their business models. As a result, Jordanian businesses will enjoy better access to finance for building resilience to climate change and investing in green and sustainable technologies. "Climate change poses challenges not only to the environment but also to the stability and resilience of financial systems across many countries. By partnering with the European Investment Bank (EIB), the Central Bank of Jordan reaffirms its commitment to building a sustainable financial sector one that channels greater investment into green projects, safeguards businesses against climate risks, and supports Jordan’s transition to a low-carbon economy," said Adel Al-Sharkas, Governor of the Central Bank of Jordan.
"By working together, we can unlock the high investment volumes needed for a sustainable and resilient future. The EIB’s global experience and technical expertise will support Jordanian banks in leading the green transition," said EIB Vice-President Gelsomina Vigliotti. "The EIB is delighted to work alongside the Central Bank of Jordan and our European partners to bring global expertise in green finance to Jordan. By empowering local banks and financial institutions, we can accelerate climate action and ensure that the benefits of sustainable finance reach every corner of the country." The EIB is a strong supporter of Jordanian businesses. Since 2017 it has provided over €1 billion of loans, as well as guarantees able to cover loan portfolios of over €200 million, partnering with eight banks and two microfinance institutions. Access to green finance is a top priority for the EIB in Jordan.
The Greening Financial Systems technical assistance program was designed by EIB Global with funding from Germany through its International Climate Initiative (IKI). The program contributes to the work of the NDC Partnership, a global coalition of 130 countries and more than 110 institutions to help achieve the Paris Agreement goals and drive sustainable development.
Jordan joins a growing group of countries participating in this program including Ethiopia, Kenya, Nigeria and Georgia, among others. Joint work with the Central Bank of Jordan under the program will strengthen Jordan’s financial system by embedding climate risk into regulatory frameworks and accelerating sustainable finance. In the initial phase, experts will assess the financial sector’s capacity for climate risk management, reporting and green financing. This is expected to help the Central Bank of Jordan further develop its policy framework for prudential requirements around climate risk management.
"It is very encouraging that, today, we are launching a program designed to translate green policies into practical work on the ground. The Central Bank of Jordan is of the utmost importance for Jordan’s economy, including its further transformation into a green economy. Climate change needs substantial and lasting responses from all of us such as the new partnership between the Central Bank and the EIB. Germany is glad to be able to support this meaningful, future-oriented cooperation," said Guido Kemmerling, Chargé d’affaires of the German Embassy to Jordan, representing IKI and the German government.
//Petra// AF
