“On Thursday, 26 January 2023, EDAMA collaborated with the “Green Action in Enterprises” project, commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, to hold the first power breakfast for the year 2023 entitled; Opportunities for Green Financing in Jordan.
The Power Breakfast hosted experts from the banking, private and international development sector in Jordan who have experience in green financing and a passion to achieve a more climate-resilient, resource-efficient, and inclusive economy. Jordan is among the first countries in the region to adopt and develop green finance solutions for the local private sector. While the concept of environmentally friendly financing remains new worldwide, the Kingdom’s advanced banking sector, among others, started intensifying efforts to introduce innovative and tailored green financial products. Those promising dynamics will need to be accelerated, however, to support the private sector, including industry, with comprehensive access to green finance for its transition towards net-zero.
The conversation was based on the current developments in Jordan and discussed what it needs for the Kingdom’s private sector to benefit the most from access to green finance, such as adequate public policies and mobilization of green financial products. In this sprit, the Association of Banks in Jordan launched its first-of-a-kind study on the potential of green finance for Jordan’s green industrial transition.
The discussion panel was moderated and initiated by Dr. Dureid Mahasneh, EDAMA chairman. Dr. Maher Mahrouq, Chief Executive Officer of the Association of Banks in Jordan, was among the panellist who highlighted the progress Jordan is witnessing across all sectors in reference to adopting sustainable practices. It also included Engineer Alaa Abu Khazneh, Board Member in the Jordan Chamber of Industry and a private business owner in the plastic industry, expressing the challenges Jordanian industries are facing due to a needed revision of the legislative infrastructure. As the supply and demand for green investments are both present, however, receiving governmental approvals on the projects remains a controversial topic. Finally, Ms. Elisaveta Kosotova, project manager of the GIZ-implemented “Green Action in Enterprises” project, presented key findings and recommendations from their joint study with the Association of Banks in Jordan which is available for the public. The study underlines the need to raise awareness and deep technical knowledge on low-hanging investment opportunities for industry and banks alike. This is particularly true for efficiency measures in water and waste management, as well as energy efficiency; fields where the study recommends policymakers, bankers, and industry to explore untapped potential for green finance.”
