AMMAN — A Climate Finance Assessment released by the World Bank revealed that its latest program approved for Jordan this year includes a dedicated climate financing portion, representing the highest percentage among programs provided by the Bank to the Kingdom.
اضافة اعلان
According to the Climate Finance Assessment document translated by Al Ghad, the "Jordan Development Policy Financing for Growth and Competitiveness (DPF II)" program—funded at $700 million during the 2026 fiscal year—includes $194.44 million in climate-related financing, accounting for 27.78% of the program's total value.
The document outlined that climate allocations are distributed as follows: $116.67 million for climate change mitigation, $38.89 million for adaptation, and $38.89 million for dual-benefit projects serving both adaptation and mitigation goals.
The assessment highlighted that key climate-related reforms include opening the door for private sector investment in renewable energy and independent power transmission infrastructure. This will be achieved by licensing independent transmission network operators, storage facilities, and self-consumption generation projects—an action allocated $38.89 million under mitigation financing.
The program also involves expanding digital government payments and electronically connecting them to Central Bank systems, alongside launching simplified business accounts for small and medium-sized enterprises (SMEs). The World Bank considered this measure a contribution toward reducing emissions generated by traditional transactions, earmarking $77.78 million for it under mitigation funding.
Regarding green finance, the assessment noted that the Central Bank activated the National Green Taxonomy and introduced climate-related disclosure and reporting requirements to direct funding toward sustainable projects. A total of $77.78 million was allocated to this reform ($38.89 million for adaptation and $77.78 million for mitigation, with $38.89 million counted as dual-benefit financing).
The World Bank explained that climate finance accounting in its projects follows the Joint Methodology of Multilateral Development Banks, which differentiates between adaptation and mitigation financing while avoiding double-counting for projects fulfilling goals in both areas.
Conversely, the report noted that several other reforms—such as business licensing reform, developing digital trade legislation, labor market reform, modernizing capital markets, enhancing SME financing, and developing the legal framework for the insurance sector—were not classified as climate financing, despite their importance in improving the business environment and fostering economic growth.
At the end of last June, the World Bank Board of Executive Directors approved a $700 million loan to the Jordanian government to support the Kingdom's efforts to translate economic stability into stronger private investment and more, better job opportunities.
The program targets funding development policies for growth and competitiveness in the Kingdom, supporting the Jordanian government's efforts to stimulate private investment, expand access to finance, create more jobs, and accelerate the pace of the country's green and digital transformation.
