EBRD, EU, GCF allocate $4 m to boost green investments in Jordan

01 / 05 / 2024

By Marwa Nassar - -

The European Bank for Reconstruction and Development (EBRD), the European Union (EU) and the Green Climate Fund (GCF) decided providing a financing facility of up to $ 4 million to microfinance company Tamweelcom to promote green investments in Jordan, especially private sector investments in projects covering climate change mitigation and adaptation.

The $ 4 million package includes $ 1 million (€ 922,000) in co-financing from the GCF and incentive grants provided by the EU, as well as technical assistance supported by the EBRD, EU and GCF.

This facility will provide finance to the private sector and local micro, small and medium-sized enterprises (MSMEs) to invest in climate change mitigation and adaptation technologies and services.

Through this facility, Tamweelcom will increase its capacity to provide awareness-raising activities, targeting women and men who are sub-borrowers of green financing or loans for climate change mitigation and adaptation technologies. Sub-borrowers will also benefit from a cash-back incentive on the successful implementation of eligible projects.

A comprehensive technical cooperation package will support the preparation, implementation and monitoring of the project. Tamweelcom staff will receive training in gender-responsive green finance to help address gender-specific obstacles to supply and demand.

The loan agreement was signed by Mike Taylor, EBRD Head of Financial Institutions for the Southern and Eastern Mediterranean region, and Basem Khanfar, Chief Executive Officer at Tamweelcom.

Mike Taylor said: “The EBRD is very pleased to sign a new agreement under its Green Economy Financing Facility in Jordan. We are proud of our partnership with the EU and GCF and we hope this collaboration with Tamweelcom will boost on-lending to the private sector. We also hope it will encourage Jordanian small businesses to invest in greener products, creating more sustainable and gender-inclusive impact.”

Thibaut Moyer, Deputy Head of Cooperation for the European Union Delegation to Jordan, said: “The EU is pleased to see the mobilisation of financing institutions, notably Tamweelcom, in advancing development cooperation to help enhance climate action. This will strengthen the private sector through MSMEs, and it reflects the EU’s commitment to empower the private sector in driving economic development and job creation.”

Basem Khanfar, CEO of Tamweelcom, said: “This agreement with the EBRD under the Green Economy Financing Facility in Jordan, in partnership with the EU and GCF, is a significant commitment by Tamweelcom to the global sustainability goals of providing green financing solutions and encouraging sustainable practices, especially for micro and small enterprises (MSEs). By obtaining new and sustainable financial products and services, MSEs will be able to invest in energy-efficient machinery, renewable energy or waste-reduction techniques, aiming for positive environmental benefits and the mitigation of climate change.”