The European Bank for Reconstruction and Development (EBRD), the European Union (EU) and the Green Climate Fund (GCF) have launched the Green Economy Financing Facility programme (GEFF) in Jordan in an effort to support the country’s transition to a greener economy.
Jordan is the latest country to join the GEFF programme in the southern and eastern Mediterranean (SEMED) region. Under the programme, the EBRD, GCF and EU will provide a total of USD $40 million in financing to local financial institutions, such as banks, microfinance institutions and leasing companies, to on-lend to the private sector for investment in high-performance technologies and services. In 2022 to date, three GEFF facilities, worth a total of US$ 22 million, have been signed with Cairo Amman Bank, Etihad Bank and the Microfund for Women.
Demand for Jordan’s key but scarce natural resources – water and energy – is growing continuously due to climate change and rapid population growth. The country’s population totalled 11.1 million in 2021. The GEFF programme is designed to address significant climate mitigation and adaptation challenges by encouraging micro-, small and medium-sized enterprises (MSMEs) and households to invest in green and innovative technologies that promote energy, water and material efficiency solutions alongside renewable energy.