The European Bank for Reconstruction and Development (EBRD) in partnership with the European Union will be supporting the government of Jordan to roll out its climate adaptation strategy.
The EBRD and the EU will help Jordan to implement its National Green Growth Plan designed to ensure sustainable management and use of water and energy resources.
The EBRD will deploy its Green Economy Financing Facility (GEFF) and the related Green Value Chain (GVC) Facility to support projects; including the deployment of energy efficiency, renewable energy, sustainable land management and other climate-friendly initiatives.
The two parties aim to improve the participation of the private sector in climate action programmes in the country.
The GEFF is expected to be launched in 2021 to support businesses and homeowners with investments in green technologies to preserve natural resources, increase energy efficiency and reduce emissions through the introduction of state-of-the-art technologies and solutions.
The programme will offer loans through local banks and microfinance institutions for on-lending to local corporates and SMEs. The programme also provides free advisory services. To date, GEFF has established a network of more than 140 local financial institutions across 26 countries supported by more than €4 billion ($4.8 billion) of EBRD finance.
Maria Hadjitheodosiou, the EU Ambassador to Jordan, said: “With the launch of the EU Green Deal, the EU is placing its focus on green energy and the sustainable use of resources, promoting green growth and economy development within a circular economy approach, both at home, as well as in its support to its partners. We are keen to start the first green growth support programme in Jordan in 2021 and translate the EU Green Deal into action, in order to deliver on green growth, green jobs and new opportunities.”
Solar energy development
The announcement follows the EBRD providing local renewable energy project developer Yellow Door Energy with $10.6 million in funding for the development of some eight solar PV plants.
The financing will be combined with a $5 million loan provided by the Global Environment Facility and a $15.6 million senior loan issued by German financial institution DEG. The Spanish government will also provide €1.5 million ($1.8 million) in funding for the projects.
The solar energy plants will provide electricity to five private consumers including telco Umniah, Carrefour supermarkets, Safeway supermarkets, Taj Mall (retail industry) and Classic Fashion (garments manufacturing).
In total, 48.3MWp of renewable energy capacity will be added to Jordan’s power system, generating over 81GWh of renewable electricity per year during the lifetime of the project. The plants are also expected to reduce CO2 emissions by more than 49,000 tonnes per year.
This is the EBRD’s second project in Jordan under the Southern and Eastern Mediterranean Private Renewable Energy Framework.
Yellow Door Energy was founded in 2015 in the United Arab Emirates and Jordan, with the aim of providing sustainable energy solutions for businesses. Today, the company has over 110MW of solar projects in the Middle East and South Asia. Yellow Door Energy’s shareholders include the International Finance Corporation, Mitsui, Equinor and APICORP.
Today, Jordan has exceeded its original renewable energy target of 10% of generated energy, with the figure now standing at 20%. Jordan has set a new goal of 30% by 2030.