EBRD, GCF and EU join forces to back Jordan's green transition

• EBRD and GCF extend US$ 20 million loan to Cairo Amman Bank
• Funds to promote Jordanian private-sector investments in climate change mitigation and adaptation technologies
• Technical cooperation package and investment grants funded by the EBRD, EU and GCF

The European Bank for Reconstruction and Development (EBRD) is promoting green financing in Jordan by providing a loan of up to US$ 20 million to Cairo Amman Bank (CAB). The Green Climate Fund (GCF) is co-financing 25 percent of the loan (US$ 5 million).

The proceeds will be on-lent to individuals and private local micro, small and medium-sized enterprises (MSMEs) for investments in climate change mitigation and adaptation technologies and upgrades to best practices.

This is the second loan to be extended to CAB under the GCF–Green Economy Financing Facility (GEFF) Regional Programme in Jordan and follows the successful completion of a US$ 10 million facility extended in 2022.

The project promotes the green economy in Jordan and the development of a strong demand-driven market for investments in high-performance technologies and services. It provides eligible sub-borrowers access to dedicated green finance tools, machinery, equipment and solutions.

A comprehensive technical cooperation package funded by the EBRD, European Union (EU) and GCF will include the implementation and monitoring of the GCF–GEFF Regional Programme, as well as capacity building for CAB’s employees for the integration of climate change and gender equality considerations into their lending strategies and practices.

Eligible sub-borrowers will receive grant incentives funded by the EU, in addition to gaining access to know-how and awareness of climate change mitigation and adaptation technologies.

Since 2012, the EBRD has provided more than €2.3 billion through 86 projects in Jordan, of which 70 per cent are in the private sector, including financial support for the Jordanian banking sector through MSME loans, subordinated debt and trade finance facilities.