Amman, Sept. 1 (Petra) -- The Association of Banks in Jordan on Tuesday held the fourth Green Finance Forum 2026, focusing on public-private dialogue as a tool to channel financing toward green projects, strengthen climate resilience and accelerate Jordan’s sustainable economic transition.

Held under the patronage of Central Bank of Jordan Governor Adel Sharkas and attended by Deputy Prime Minister and Minister of Local Administration Walid Masri, ministers, bankers and representatives of international institutions, the forum examined ways to develop bankable green projects, expand sustainable finance and mobilize public and private investment.

Masri said municipalities and local administrations are key partners in sustainable development, given their role in creating local economies and improving quality of life through greener and more resilient communities.

He highlighted progress in securing climate finance, noting that the Cities and Villages Development Bank has completed accreditation requirements with the Green Climate Fund, while projects worth about $200 million have advanced through the fund’s approval process.

He also pointed to investment opportunities in waste management, including a "Zero Waste" project in northern Jordan aimed at significantly reducing landfill waste and a private-sector project for waste management at the Azraq landfill.

Masri stressed the need to turn financing into sustainable investments that create jobs and strengthen the economy, building on successful public-private partnerships in the energy and water sectors.

Representing the Central Bank governor, Ziad Ghanma said sustainability and the green transition have become central to economic policymaking and investment decisions. He highlighted the bank’s Green Finance Strategy 2023-2028, developed with the World Bank and relevant stakeholders, as a framework for expanding green finance and managing climate-related risks across the financial sector.

He also highlighted the issuance of climate-risk management and disclosure guidelines and the launch of the Jordan National Green Taxonomy, developed by the Central Bank and Ministry of Environment with World Bank support and adopted by the Cabinet in February. The rating establishes criteria for identifying green projects and sustainable economic activities, helping direct financing, improve transparency and attract investment.

Association of Banks Chairperson Bassem Salem said the green transition has become integral to economic growth, competitiveness, energy, water and food security, and resource efficiency. He stressed that public-private dialogue should translate national priorities into partnerships, projects and investments with tangible economic impact.

Association Director General Maher Mahrouq said the association began examining green finance in the banking sector in 2022 and established a Green Finance Committee to develop partnerships and policy frameworks. He said the forum, launched in 2023, now aims to strengthen public-private dialogue, establish the national green rating as a common reference and expand partnerships to develop bankable projects.

The forum featured a keynote address by U.N. Special Envoy on Financing for Sustainable Development Mahmoud Mohieldin on green dialogue between the public and private sectors amid geopolitical changes and ways to build economic resilience and finance the sustainable transition.

The first session focused on sustainability as a driver of economic resilience, covering renewable energy, energy efficiency, sustainable transportation, the circular economy, water and food security, green industries and energy diversification.

Energy and Mineral Resources Minister Saleh Kharabsheh said renewable sources currently account for about 27% of Jordan’s electricity generation, with the National Energy Strategy targeting 40% and potentially 50% by 2035. He stressed the need for a more flexible electricity grid to accommodate additional renewable energy and said shifting toward domestic energy sources is increasingly important for both energy security and lower costs.

Kharabsheh also highlighted plans for green hydrogen production and the expansion of gas production at the al-Risha field, while noting the potential to supply natural gas to industrial facilities at lower costs than diesel and heavy fuel oil.

Environment Minister Ayman Suleiman said sustainability is now an integrated framework linking energy, water, waste management, transportation and natural resources. He highlighted Jordan’s commitment to cutting greenhouse gas emissions by 31% by 2030 and said renewable energy, gas, green hydrogen and electric vehicles will contribute to the target.

Former Energy and Mineral Resources Minister Ibrahim Saif highlighted changes in Jordan’s electricity market and the potential to develop energy capacity to meet growing global demand for electricity associated with data processing.

Jordan Kuwait Bank Group CEO Haitham Bataykhi said sustainability projects have demonstrated their investment viability in Jordan, citing wind and solar energy projects and the bank’s issuance of green bonds to finance sustainable projects.

The second session examined the Jordan National Green Taxonomy and its role in creating a common framework for government, banks, investors and businesses to identify eligible green projects, guide financing, attract investment and integrate environmental, social and governance risks into project assessment and monitoring.

The third session addressed the financing requirements of the green transition, focusing on the roles of government and the private sector, risk sharing and the use of policies, incentives, guarantees and other risk-mitigation mechanisms to make green projects bankable.

Participants also discussed financial tools to support sustainable projects, including green and sustainability-linked finance, blended finance, guarantees, green funds, bonds, sukuk and concessional financing.

//Petra// AJ