EBRD and Green Climate Fund collaborate to strengthen climate finance in Jordan

In a joint effort to promote climate finance and sustainable development in Jordan, the European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) have announced a $4 million grant to Tamwielcom, the country’s second The investment was given the go-ahead. The largest microfinance institution.

The financing includes a senior unsecured loan of up to $4 million, with the EBRD providing up to $3 million and GCF providing up to $1 million. This joint initiative falls under the GCF and Green Economy Financing Facility (GEFF) regional framework.

Founded in 1999, Tamweelcom plays a key role in supporting Micro, Small and Medium Enterprises (MSMEs) in Jordan, serving approximately 100,000 customers through an extensive network of 39 branches. The microfinance company has disbursed approximately JOD 725 million since its inception and provides financial and non-financial services to customers, especially those excluded from the traditional banking system.

The investment aims to allocate loan proceeds to climate change mitigation and adaptation technologies, with a focus on local small and medium-sized enterprises, including women-led businesses. This strategic move is in line with Jordan’s GEFF standards and reporting requirements and emphasizes the importance of environmentally sustainable practices.

The project is expected to contribute significantly to the quality of Green Transition Impact (TI) with an estimated score of 70. This project aligns with the objectives of the GCF GEFF Jordan program, which directs funds to climate-friendly technologies and services that advance the green transition. A low-carbon, climate-resilient economy.

To ensure the success of this initiative, Tamweelcom is expected to benefit from technical cooperation and grants. This support includes a comprehensive technical assistance program at a program-wide level aimed at supporting Tamweelcom and its customers in project implementation. In addition, funds from the European Union, GCF and EBRD SSF will provide investment incentives to end-borrowers.

This joint effort underscores the commitment of international financial institutions to foster sustainable and climate-resilient economic development in Jordan and contribute to the country’s broader environmental and social goals.

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