Climate Innovation in Jordan: From Ideas to Scalable Investments
Amman4 min read
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Climate innovation in Jordan is emerging as an increasingly important path to address the challenges of water scarcity, drought, food security, energy, transportation, and waste management, amid a shift towards transforming climate solutions and experiences from limited projects into scalable and investable models, thereby enhancing the national economy's resilience and opening the door to new opportunities for green growth.
The President of the Jordanian Environmental Associations Federation, and a member of the Board of Directors of the Royal Society for the Conservation of Nature, Omar Al-Shushah, told Al-Rai that Jordan has a real opportunity to transition climate innovation from the stage of ideas and pilot projects to the stage of implementation and investment on a larger scale, based on institutional, legislative, and technical expertise accumulated over the past years.
Al-Shushah explained that the climate challenge is no longer a separate environmental issue, but is directly linked to water and food security, energy, and the national economy's ability to grow and withstand, pointing out that urgent priorities include developing innovative solutions for water scarcity and drought, agriculture and climate adaptation, energy efficiency, sustainable transportation, waste management, and the circular economy, in addition to enhancing the ability of cities and infrastructure to cope with heat waves and floods.
The Challenge: Expanding the Scope of Solutions
He pointed out that Jordan already has many promising solutions and experiences, but the real challenge lies in moving from 'project' to'scalable model'.
He explained that the success of a limited experiment does not necessarily mean achieving a broad climate impact, unless it is transformed into a product, service, or policy that is applicable, investable, and scalable, with a clear economic benefit.
He stressed that achieving this requires an integrated system that includes financing, legislation, and incentives, alongside the development of projects to become technically and economically ready for funding, and reducing risks that may limit investors' entry into climate projects.
Climate Financing: A Priority for the Next Phase
Al-Shushah emphasized the importance of the recent royal directive to prepare a comprehensive and unified national climate financing strategy, in cooperation with the private sector, considering that this could be a turning point in how Jordan deals with climate financing.
He said that what is needed is to move from financing scattered projects to a national system that identifies priorities, develops fundable projects, and attracts international financing and private investment more comprehensively.
He pointed out that Jordan's receipt of $295 million from the Green Climate Fund for the National Water Conveyance Project reflects, in his estimation, international confidence in the Kingdom's ability to develop and implement strategic climate projects.
He stressed that increasing the volume of financing is not the only goal, but the most important thing is to improve its quality and direct it to projects with a clear impact and scalability, through tools that include green financing, blended financing, guarantees, and green bonds and Sukuk, alongside reducing investment risks in climate projects.
The Private Sector: From Innovation to Investment
Al-Shushah confirmed that the private sector should be a key partner in the next phase, where the government sets policies, frameworks, and incentives, financial institutions provide financing tools, while the private sector transforms innovation into investments, products, and job opportunities.
He pointed out that this requires a stable legislative environment, clear incentives, and more flexible procedures, alongside the existence of projects that are technically and economically ready for financing.
He praised the institutional role of the Central Bank of Jordan in developing the green financing system and managing climate risks, referring to the Central Bank's Green Financing Strategy 2023–2028, the Climate Risk Management and Disclosure Guidelines, and the National Classification of Green Activities, as tools that provide a basis for directing capital towards sustainable investments.
Water, Agriculture, and Energy at the Forefront of Needs
Al-Shushah identified the water, agriculture and food security, energy and its efficiency, sustainable transportation, waste management and circular economy, and green cities and infrastructure sectors as the most important areas that require climate investments and innovations in the next phase.
He explained that these sectors not only represent a response to the repercussions of climate change, but can also form drivers of economic growth, create green jobs, and enhance Jordan's competitiveness regionally and internationally.
He stressed that Jordan 'does not start from scratch', given the existence of national institutions, technical expertise, legislative and policy frameworks, international confidence, and a banking sector capable of development, emphasizing that the next phase requires gathering these components within a single system that makes climate innovation a national economic investment, instead of remaining within the framework of experimental environmental projects
