The Association of Banks in Jordan held the fourth edition of its Green Finance Forum on Tuesday under the theme "Green Dialogue Between the Public and Private Sectors: A Strategic Tool for Framing Sustainability," bringing together government ministers, central bank officials, bankers and international development representatives to discuss channeling financing toward green projects.
اضافة اعلان
The forum was held under the patronage of Central Bank of Jordan Governor Adel Sharkas and attended by Deputy Prime Minister and Minister of Local Administration Walid Al-Masri, Association of Banks Chairman Basem Khalil Al-Salem, and central bank representative Ziad Ghanma. Jordan Kuwait Bank and Housing Bank sponsored the event at the platinum level, with Jordan Islamic Bank, Signature, Capital Leasing, Arab Islamic International Bank, National Bank of Jordan, Union Bank and Safwa Islamic Bank sponsoring at the gold level.
Renewable Energy Now 27% of Jordan's Electricity Mix
Minister of Energy and Mineral Resources Saleh Kharabsheh said Jordan ranks first in the Middle East and North Africa region for renewable energy generation, excluding hydroelectric power. He said renewable sources currently supply approximately 27 percent of Jordan's electricity, with the National Energy Strategy targeting 40 percent and, under an optimistic scenario, 50 percent by 2035.
Kharabsheh said reaching those targets requires a more flexible electricity grid capable of absorbing additional renewable capacity, noting that renewable energy costs have become highly competitive with conventional sources. He said Jordan's energy bill has reached approximately 15 percent of GDP in some years, framing the shift toward local energy sources as a matter of cost and energy security as much as emissions reduction.
Kharabsheh described natural gas as a transitional fuel and green hydrogen as "the fuel of the future," pointing to a signed investment agreement for green hydrogen production set to begin in 2030. He said the European Bank for Reconstruction and Development has indicated it is prepared to provide up to one billion euros in financing to support green hydrogen projects in Jordan through 2030.
On domestic gas production, Kharabsheh said Jordan's National Petroleum Company is drilling 80 wells at the Risha field, with production expected to reach 418 to 420 million cubic feet per day by 2029, compared to current consumption of about 340 million cubic feet for electricity generation.
He said this expansion would bring Jordan close to meeting its own gas needs for power generation and would allow more industrial complexes to switch from diesel and heavy fuel oil, at costs 50 percent and 35 percent lower respectively. Kharabsheh predicted Jordan would achieve near energy self-sufficiency within five years and become a net exporter of green energy within a decade.
Central Bank Details Green Finance Strategy and National Rating System
Ziad Ghanma, representing the Central Bank governor, said sustainability has evolved from an environmental issue into a core framework for investment and financing decisions. He said the Central Bank first incorporated renewable energy into its sector financing programs in 2013, before expanding the approach to green projects more broadly.
Ghanma pointed to the Green Finance Strategy for 2023-2028, developed with the World Bank and the Association of Banks, as a roadmap covering banks, finance companies, insurers and microfinance institutions. He said the Central Bank has issued climate risk management guidelines to help banks identify and monitor climate-related risks, along with disclosure and reporting standards.
Ghanma highlighted the Jordanian National Green Rating, developed by the Central Bank and Ministry of Environment with World Bank support and adopted by the Cabinet on February 5, 2026. He said the rating sets criteria for identifying green projects and sustainable economic activities, and is intended to mobilize financing, increase investor confidence, and direct capital toward priority sectors including renewable energy, water efficiency, sustainable buildings, waste management and low-carbon transportation.
Officials Cite Water Sector Losses and Transport Energy Use as Key Challenges
Ibrahim Saif, a former energy minister, said Jordan's electricity production model has diversified over the past decade to include multiple producers and self-generation arrangements. He said the water sector consumes approximately 15 percent of Jordan's electricity while losing between 40 and 45 percent of the water it pumps, representing a simultaneous waste of both resources.
Saif said addressing this imbalance would strengthen the economy's competitiveness, and noted that transportation accounts for about 37 percent of Jordan's primary energy consumption, a higher share than in many countries that direct more energy toward industrial production. He suggested rising global demand for data-processing energy could position Jordan as a hub for that sector.
Minister of Environment Ayman Suleiman said sustainability is now embedded across the government's economic modernization programs rather than treated as a standalone sector, with energy, water, waste management and transportation increasingly managed as an interconnected system. He said Jordan is committed to cutting greenhouse gas emissions 31 percent by 2030, supported by renewable energy, gas, green hydrogen and electric vehicle initiatives, and that the Ministry of Environment is revising its green growth plans with support from the European Union and the Global Green Growth Institute.
Deputy PM Points to Green Climate Fund Accreditation and Waste Projects
Deputy Prime Minister Walid Al-Masri said Jordan's Cities and Villages Development Bank has completed the requirements to become the country's first entity accredited by the Green Climate Fund, and expressed hope that hosting the fund's upcoming conference in Jordan would open new financing opportunities. He said projects submitted to the fund, worth nearly 200 million dollars, have cleared several review stages and are awaiting final approval.
Al-Masri pointed to two active waste management opportunities: a "Zero Waste" project in northern Jordan aimed at cutting landfill waste to about 10 percent through reuse of the remainder, and a private-sector waste management initiative at the Azraq landfill. He said municipalities and local administrations remain key partners in translating green priorities into bankable projects capable of generating jobs, which he called the most significant economic challenge facing the country.
Banking Sector Points to Billions in Investment Potential
Haitham Al-Bataykhi, chief executive of Jordan Kuwait Bank, said sustainability-linked investments have delivered strong financial returns in Jordan since the Tafila wind project and subsequent solar investments. He said his bank was among the first in Jordan to issue green bonds and noted that World Bank estimates put the value of green and renewable energy project opportunities in Jordan at a minimum of 10 billion dollars.
Association of Banks Chairman Basem Khalil Al-Salem said sustainability has become central to growth, investment and competitiveness rather than a separate environmental concern, and pointed to progress among Jordanian banks in adopting environmental, social and governance standards.
Maher Al-Mahrouq, director general of the Association of Banks, traced the forum's evolution since its 2023 launch, from building shared understanding of green finance to, in this year's edition, consolidating public-private dialogue around the national green rating system as a common reference point for bankable projects.
Forum Structure and Participants
The forum opened with a keynote from UN Special Envoy on Financing the Sustainable Development Goals Mahmoud Mohieldin. Subsequent sessions covered sustainability's role in economic resilience, the national green rating system, and financing mechanisms for the green transition, including blended finance, green bonds, sukuk and concessional lending.
Session moderators and panelists included Edama Association Chairman Duraid Mahasneh, who said water scarcity remains Jordan's greatest sustainability challenge; SustainMENA founder Shada Al-Sharif; Jordan Strategy Forum Executive Director Nisreen Barakat; and representatives from the Central Bank, Ministry of Environment, Ministry of Investment, the Green Climate Fund, the International Finance Corporation, the Cities and Villages Development Bank, and ESCWA.
The forum's partners included the German Agency for International Cooperation, implementing programs on behalf of Germany's Federal Ministry for Economic Cooperation and Development with co-funding from the Netherlands' Directorate-General for International Cooperation. CNBC Arabia served as media partner.
The forum concluded with recommendations to continue public-private dialogue, develop bankable green projects, expand use of the national green rating system, strengthen climate risk management, and mobilize green finance to accelerate Jordan's sustainable transition.
Source: Al-Ghad.
