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