AMMAN, Sept. 8 (Petra) - Economic experts have underscored the critical importance of robust technical support and capacity-building programs for both the public and private sectors, positioning them as essential catalysts to craft bankable green projects and maximize Jordan’s access to domestic and international climate finance.

In interviews with the Jordan News Agency (Petra), specialists noted that the next phase requires scaling up green financing by refining funding instruments, expanding institutional capabilities, and steering capital toward high-priority sectors to spur sustainable economic growth and national competitiveness.

The emphasis follows a directive by His Majesty King Abdullah II during a high-level meeting yesterday reviewing government strategies in climate and green finance. His Majesty tasked officials with formulating a unified, comprehensive national climate finance strategy in close coordination with the private sector. The King stressed the necessity of deploying targeted technical support programs to empower both public and private entities in leveraging available climate funds and low-carbon technologies, aligning local practices with global environmental targets.

Raed Al-Tel, professor of economics at the University of Jordan, emphasized that true institutional capacity-building is vital to help stakeholders navigate green finance requirements. He noted that many promising initiatives stall before reaching the funding stage due to a lack of technical readiness and feasibility data.

"The immediate priority must be establishing training programs that guide organizations in drafting bankable green proposals, conducting technical and feasibility studies, and deploying metrics to measure environmental and economic impact," Al-Tel said. He added that specialized databases and indicators will empower banks and investors to better evaluate risks and returns, thereby expanding capital flows into the sector.

Al-Tel called for a wider rollout of green bonds, incentives for commercial lenders to back sustainable energy, water, and transport initiatives, and supportive frameworks for private green investments. He pointed out that Jordan has already taken positive strides-particularly in renewable energy integration-yet the core challenge lies in bridging the gap between national ambitions and the execution capacity required by international lenders.

Maher Al-Mahrouq, Director General of the Association of Banks in Jordan, echoed this perspective, stating that the royal emphasis on technical support addresses a fundamental bottleneck.

"The challenge in green finance is not necessarily a shortage of capital sources-both local and international funds exist-but rather our ability to transform needs and ideas into qualified, bankable green projects," Al-Mahrouq explained.

He advocated for an integrated technical support ecosystem catering to government agencies, municipalities, and small- and medium-sized enterprises (SMEs). This framework, he noted, would assist ventures from inception to financing, building a robust national portfolio of sustainable projects supported by Jordan’s newly established National Green Taxonomy, which provides a unified reference for green economic activities.

Detailing the banking sector’s pivotal role, Al-Mahrouq explained that financial institutions act as a bridge between capital and the real economy. Beyond rolling out green loan products for energy efficiency, water conservation, and sustainable agriculture, banks are increasingly embedding climate risk management into credit decisions-a move aligned with the Central Bank of Jordan’s Green Finance Strategy (2023-2028).

Financial and economic expert Majed Shafiq highlighted the potential of tapping into alternative debt instruments, such as green corporate bonds and Islamic green sukuk, alongside traditional commercial lending. He recommended establishing a specialized green infrastructure investment fund supported by customized technical structuring to align with international best practices.

From an entrepreneurial standpoint, economy and business expert Nawal Hasan stressed that sustainable resource management-spanning solar energy, water security, soil preservation, and circular economy practices-is an economic imperative rather than solely an environmental choice. She noted that Jordan’s solar energy success proves how tapping into natural advantages can directly bolster energy security, lower operational costs, and foster long-term competitiveness.

Weighing in from the industrial sector, Maen Ayasrah, Director of the Center for Energy and Environmental Sustainability at the Jordan Chamber of Industry, pointed to World Bank estimates indicating that Jordan requires roughly USD 9.5 billion in additional investments through 2030 to achieve a resilient, low-carbon pathway. National green growth plans pin sector-specific needs at USD 1.8 billion.

Ayasrah emphasized that technical support serves as the vital bridge connecting industrial plants with financial institutions, helping factories translate resource-efficiency goals into fundable projects that simultaneously slash overhead and elevate market competitiveness.

//Petra// AA