AMMAN — Under the patronage of Central Bank of Jordan (CBJ) Governor Adel Sharkas, the Association of Banks in Jordan (ABJ) on Wednesday launched the "Guide to the Development of Green Financial Products for Banks and Financial Institutions".

 

The guide aims to promote the transition towards sustainable finance and provide practical tools for banks to support the green economy while aligning with national sustainability priorities.

 

The launch event was attended by Minister of Environment Ayman Suleiman, Deputy Governor of CBJ Ziad Ghanma, representatives of banks and financial institutions, as well as international partners.

 

It was organised in partnership with the German International Cooperation (GIZ) and supported by the German Federal Ministry for Economic Cooperation and Development (BMZ), highlighting Jordan’s growing role as a regional hub for sustainable finance initiatives.

 

Minister Suleiman stressed that the shift toward a green and blue economy is now a necessity, driven by environmental challenges and climate change."The transition to a green economy is essential for the sustainability and resilience of our economy," he said.

 

He added that the government, through the second executive programme of the Economic Modernisation Vision (EMV) for 2026–2029, continues to prioritise sustainability and green growth, with the blue economy included as a central focus for the next phase.

 

The minister emphasised that tools for this transition are not the sole responsibility of governments and require strong partnerships with the private and financial sectors.

 

"Banks have become a key partner in directing investments toward green and blue activities," he said.

 

Suleiman noted that Jordan enjoys significant opportunities in sustainable finance, particularly given the country’s stability compared with the region, and that international bodies increasingly view the Kingdom as a regional platform for implementing international cooperation programmes.

 

He highlighted Jordan’s selection to host the Regional Office of the Green Climate Fund as an indicator of international confidence in the Kingdom’s ability to manage and implement environmental and climate finance programmes.

 

The minister also cited indicators of Jordan’s progress in the green transition, including a reduction in the national carbon footprint, a growing share of renewable energy, which now accounts for approximately 30 per cent of the energy mix, and the accelerated adoption of electric and hybrid vehicles.

 

Deputy Governor of the CBJ Ziad Ghanma described the launch of the guide as an "advanced practical step" reflecting the banking sector’s commitment to promoting sustainable finance and turning strategic directions into practical tools.

 

"Sustainability has become a key criterion in measuring the readiness of economies and their ability to withstand challenges, especially amid accelerating economic, climate and geopolitical pressures," he said.

 

Ghanma added that international experience shows a direct link between economic and financial stability and the adoption of green finance strategies and practices.

 

He said that the shift toward sustainable finance has become a strategic approach that reshapes financing priorities and channels resources toward more efficient and sustainable opportunities.

 

Ghanma also noted that the EMV emphasises the role of a proactive financial sector in directing capital toward value-added sectors and emerging growth drivers, while embedding sustainability into the national economic model to boost productivity, stimulate innovation, and create jobs.

 

Head of Project at the GAIN project Simon Floeth told The Jordan Times: "Going green is not just sustainable, it’s smart business. It helps companies export more, survive in the long term, save costs, and use resources efficiently."

 

He added "Access to finance and the banking sector are key to making this transition possible, and this toolkit guides banks to support green projects effectively."

 

ABJ Director-General Maher Al Mahrouq said the guide resulted from collaboration between the Association, GIZ, the Ministry of Environment, and the Ministry of Industry, Trade and Supply within a national framework to promote sustainable finance in Jordan.

 

"Its significance lies in being a practical, hands-on tool developed specifically to meet the needs of banks and financial institutions and to help them move from strategy and vision to implementation and application," Al Mahrouq said.

 

He noted that recent years have seen marked progress in national frameworks supporting green finance, including the CBJ’s Green Finance Strategy for 2023–2028, the national classification of green activities, and initiatives on disclosure and climate risk management.

 

Al Mahrouq stressed that the real challenge lies not in drafting frameworks but in translating them into financial products that banks can implement.

 

The guide provides a comprehensive methodology covering the entire green financial product development cycle, from understanding green finance and classification criteria, to analysing market and customer needs, designing products, assessing feasibility, launching and monitoring them.

 

It aims to bridge the gap between policy frameworks and actionable financial solutions, helping Jordanian banks support the country’s green transition while enhancing competitiveness and sustainability.