Experts: Royal Directive Opens the Door to a New Phase of Climate Financing

In statements to Alrai, they noted that these directives capitalize on the achievements recently made by the Kingdom, foremost among which is securing $295 million in funding from the Green Climate Fund for the National Water Conveyor project, in addition to being chosen as the host for the Fund's representative office for the Middle East, Central Asia, and Eastern Europe.

This directive came as His Majesty chaired a meeting on Monday to follow up on the government's efforts and plans in the field of green and climate financing, in the presence of His Royal Highness Crown Prince Al Hussein bin Abdullah II. His Majesty instructed the government to develop the strategy in cooperation and coordination with the private sector, emphasizing the importance of providing technical support programs that enable both the public and private sectors to leverage available climate financing sources and carbon emission reduction tools, in alignment with local and global environment and climate targets.

In this context, the Head of the Architectural Engineering Division at the Jordanian Engineers Association and environmental activist Imad Dabbas stated that «His Majesty the King's directives are clear, especially given the commitments Jordan has undertaken under international agreements it has joined.» He explained that green and climate financing fundamentally aim to mitigate the impacts of climate change through investments directed mostly toward renewable energy, green buildings, and similar projects.

Dabbas emphasized that «we must benefit from these grants in cooperation with the private sector,» affirming that the Engineers Association is «ready to cooperate in all ways to make these projects successful.»

These directives come at a time when Jordan possesses a cumulative policy foundation in this dossier, dating back to the issuance of the National Green Growth Plan in 2017, through the issuance of the first green bond worth $50 million via the local banking sector in 2023, and the Central Bank of Jordan laying the cornerstone in the same year for the Green Finance Strategy for 2023-2028. Dabbas points out that «in Jordan, there are green loans through the Central Bank to finance green projects that contribute to emission mitigation,» which, according to him, provides ready-made tools that can be built upon within any unified national strategy.

Dabbas believes that the strategy directed by His Majesty the King «must have its messages grasped by everyone, who should work to implement all its provisions, and cooperation among the various concerned parties must be absolute and indivisible.» He pointed out that the success of any climate financing ecosystem depends on the extent to which state institutions and the private sector commit together to translating the royal directive into clearly defined action programs.

For her part, environmental activist and expert Hala Murad, Head of the Dibeen Association for Environmental Development, considered that His Majesty the King's directive to develop a comprehensive and unified national strategy for climate financing, in cooperation with the private sector and experienced entities, constitutes a strategic step that enhances Jordan's ability to face climate challenges and transform them into real economic and developmental opportunities.

She added that this directive will transition climate financing in the Kingdom from a pattern of individual, scattered projects into an integrated national ecosystem that attracts funding and directs it carefully toward national priorities and projects with broader economic, environmental, and societal impacts.

She noted that Jordan securing $295 million from the Green Climate Fund for the National Water Conveyor project reflects a growing international confidence in the Kingdom's ability to implement strategic projects that simultaneously meet climate and development priorities.

Regarding national institutions concerned with this dossier, the Cities and Villages Development Bank recently completed the requirements for its accreditation as the first official national entity accredited by the Green Climate Fund, a step that opens the door to more national projects eligible to benefit directly from the Fund's resources. The Fund is scheduled to hold its next meeting in Jordan, providing an additional opportunity to propose new financing, investment, and public-private partnership projects, at a time when the Economic Modernization Vision 2033 aims to attract investments of around 41 billion dinars to raise growth rates to 5.6 percent by 2033, and create about one million permanent jobs, within sectors led by water, transport, agriculture, environment, tourism, and energy, with its flagship project being the green hydrogen project.

Opportunities related to the green economy are not limited to local projects, as the region is witnessing regional and transcontinental projects that intersect with this orientation, ranging from railway projects linking Saudi Arabia to Jordan, Syria, and Turkey reaching Europe, to electrical interconnection projects between Egypt, Jordan, Iraq, Syria, and Lebanon. These projects also intersect with green financing opportunities related to regional reconstruction efforts, opening horizons for new partnerships between governments and the private sector.

Meanwhile, Dr. Ahmed Jaber Al-Shuraideh, an environmental activist and ecology professor, viewed that partnership with the private sector represents an indispensable core pillar for the success of any national climate financing strategy, particularly in the sectors of energy, water, waste management, sustainable transport, climate-smart agriculture, ecotourism, and nature-based solutions.

He explained that addressing climate change is not only an environmental responsibility but also represents a national opportunity to redirect investment toward future sectors, create jobs, enhance the competitiveness of the national economy, protect natural resources, and build a more resilient and sustainable Jordan.

Al-Shuraideh stressed that translating these opportunities into tangible reality requires continuing to develop legislation and policies that incentivize sustainable investment, keeping pace with the scale of mega-projects witnessed in Jordan and its regional surroundings. He emphasized that the success of the anticipated national strategy will ultimately be measured by its ability to transform these opportunities into effective and sustainable partnerships between governments and the private sector.