EIB, Jordan Central Bank Launch Green Finance Programme to Tackle Climate Risks

The European Investment Bank (EIB), through its development arm EIB Global, in partnership with the Central Bank of Jordan, has launched the Greening Financial Systems technical assistance programme to support the country’s transition toward a climate-resilient and sustainable financial sector.

The programme, announced today in Amman, will help Jordan’s commercial banks embed climate risk assessments into their operations, adapt business models for green financing, and expand access to sustainable finance. This will make it easier for businesses to secure funding for investments in resilience-building and low-carbon technologies.

Strengthening Financial Stability Against Climate Risks

Dr. Adel Al-Sharkas, Governor of the Central Bank of Jordan, emphasized the critical link between climate change and financial system resilience:

“Climate change poses challenges not only to the environment but also to the stability and resilience of financial systems across many countries. By partnering with the EIB, the Central Bank of Jordan reaffirms its commitment to building a sustainable financial sector—one that channels greater investment into green projects, safeguards businesses against climate risks, and supports Jordan’s transition to a low-carbon economy.”

The new programme will support Jordan’s broader green economy strategy, ensuring that climate risk becomes an integral part of financial decision-making and regulatory oversight.

EIB’s Commitment to Jordan

EIB Vice-President Gelsomina Vigliotti noted that the initiative reflects EIB’s global experience and long-standing partnership with Jordan:

“By working together, we can unlock the high investment volumes needed for a sustainable and resilient future. The EIB’s global experience and technical expertise will support Jordanian banks in leading the green transition. By empowering local banks and financial institutions, we can accelerate climate action and ensure that the benefits of sustainable finance reach every corner of the country.”

Since 2017, the EIB has provided over €1 billion in loans to Jordan, as well as guarantees covering €200 million in loan portfolios, working with eight banks and two microfinance institutions. Expanding access to green finance has become a top priority for the EIB in the country.

International Partnerships and Funding

The Greening Financial Systems programme was developed by EIB Global with funding from Germany’s International Climate Initiative (IKI). It also contributes to the work of the NDC Partnership, a coalition of 130 countries and over 110 institutions working to achieve the Paris Agreement goals and sustainable development objectives.

Germany’s Chargé d’affaires in Jordan, Guido Kemmerling, highlighted the importance of international cooperation:

“It is very encouraging that today we are launching a programme designed to translate green policies into practical work on the ground. The Central Bank of Jordan is of the utmost importance for Jordan’s economy, including its further transformation into a green economy. Germany is glad to be able to support this meaningful, future-oriented cooperation.”

Part of a Global Effort

Jordan now joins other countries—including Ethiopia, Kenya, Nigeria, and Georgia—already participating in the Greening Financial Systems programme. The collaboration will:

• Assess the capacity of Jordan’s financial sector to manage climate risks,

• Improve reporting and monitoring systems for green finance, and

• Develop regulatory frameworks for climate-related prudential requirements.

This will help align Jordan’s financial system with international standards while fostering a stronger role for banks in mobilizing investment for climate action.

Looking Ahead

The initiative is expected to accelerate Jordan’s green transition by supporting businesses in adopting sustainable practices, ensuring the banking sector is better equipped to manage risks, and strengthening Jordan’s ability to attract global green investment.

By embedding climate considerations into its financial architecture, Jordan is taking a significant step towards long-term economic resilience and a low-carbon, climate-smart future.