The best ways to transition to a green economy in Jordan are based on exploiting its natural resources (especially solar and wind energy), addressing the challenges of water scarcity and imported energy, within the framework of the Economic Modernization Vision 2023-2033 and national plans such as the National Green Growth Plan and the Energy Sector Strategy 2025-2035.
Jordan has achieved remarkable progress: the share of renewable energy in electricity generation has reached 27-28.5% (from less than 1% a decade ago), and targets 40% by 2035 (with an ambitious scenario of 50%). It is also progressing in green hydrogen, green ammonia, green finance, and the national green taxonomy.
1. Renewable Energy and Green Hydrogen (The Main Pillar)
• Expanding solar and wind energy with a focus on storage (batteries and pumped storage systems) to solve the problem of intermittency and grid constraints.
• Developing green hydrogen and green ammonia as a strategic export sector, taking advantage of the Port of Aqaba, vast lands, and high solar radiation. There are projects under implementation at an estimated cost of billions of dollars, targeting the start of commercial production around 2030 and gradually raising quantities to hundreds of thousands of tons annually.
• Raising energy efficiency in buildings, industry, and transport, and encouraging solar heaters and electric vehicles (the goal of increasing the share of electric cars in new sales).
• Supporting small and medium-sized enterprises in adopting renewable energy through concessional financing and simplified licensing procedures.
2. Water Management and Water Security (The Biggest Challenge)
Jordan is one of the most water-scarce countries globally, and the water sector consumes a large percentage of electricity with high water losses (40-45%).
• Expanding desalination (especially renewable energy-linked), reusing treated wastewater, water harvesting, and reducing losses.
• The National Water Conveyor project and diversifying sources.
• Smart agriculture: hydroponics which saves up to 85% of water, women's cooperatives, and drought-resistant crops.
3. Sustainable Agriculture and Circular Economy
• Transitioning to precision and climate-smart agriculture, and reusing water in agriculture around treatment plants.
• Waste management: promoting recycling and the circular economy, zero-waste projects, and treating organic and plastic waste.
• Low-carbon green industries, including the elimination of ozone-depleting substances (Jordan has made significant progress here with World Bank support).
4. Transport and Sustainable Cities
• Encouraging electric public transport and railways for freight transport, and increasing the share of electric vehicles.
• Smart urban planning and resilient cities in the National Green Growth Plan: green growth corridors, smart cities, rural resilience.
• Building efficiency and green building standards.
5. Finance, Policies, and Governance
• Activating the national green taxonomy and the Central Bank's green finance strategy to direct investments towards sustainable activities.
• Attracting international climate finance (Green Climate Fund, EU partnerships, green bonds and sukuk, debt-for-climate swaps).
• Public-private partnerships and tax and customs exemptions for renewable energy and hydrogen equipment.
• Developing policies and legislation, and linking them to the Economic Modernization Vision (the goal of reducing emissions by at least 31% by 2030).
• Supporting green entrepreneurship, youth, and women through incubation and funding programs (such as EU-supported programs).
6. Capacity Building, Awareness, and Just Transition
• Training youth in green skills (energy, smart agriculture, waste management, hydrogen).
• Integrating sustainability into education and industrial facilities.
• Ensuring a just transition that includes governorates, less-fortunate regions, and refugees, to create green jobs.
Main Challenges to be Addressed
• Electrical grid constraints and storage.
• Water scarcity and desalination costs associated with hydrogen.
• Financing and bureaucracy for small projects.
• Local awareness and demand for green products and services.
• Institutional coordination among ministries.
The top priority is to accelerate renewable energy, storage, and green hydrogen as a driver for growth and export, in parallel with water and circular agriculture solutions. Success depends on the rapid implementation of mega projects, streamlining procedures, attracting private and international investments, and building human capital.
Jordan is well-positioned to become a regional model in this field if the current momentum in policies and projects continues.
Sectors and Activities Covered
It covers nine main sectors (expandable in the future), and includes about 51 economic activities:
• Agriculture, forestry, and sustainability
• Manufacturing
• Energy
• Water supply, sewerage, and waste management
• Transport
• Tourism
• Construction
• Information and Communications Technology
• Mining
Each activity has technical screening criteria that determine if it makes a substantial contribution to one of the environmental objectives.
