Jordan’s Central Bank Launches 5-Year Green Finance Strategy to Boost Sustainable Finance Development
The Central Bank of Jordan (CBJ) has launched a five-year Green Finance Strategy aimed at transforming the country’s financial sector into a leading force for green finance mobilization and enhanced resilience against climate-related and environmental risks.
A Major Move towards Sustainable Finance Development
The CBJ’s Green Finance Strategy, supported by the World Bank Group, aims to enable Jordan to become one of the regional leaders in sustainable finance. To achieve this, the bank will collaborate with stakeholders across the financial sector and beyond to integrate climate-responsive and environmental considerations into all aspects of financial decision-making.
Key Components of the Strategy
- Developing Environmental, Social, and Governance (ESG) guidelines for financial institutions
- Creating green financing products and services
- Establishing internal controls, risk management, and disclosure and reporting mechanisms to ensure effective implementation
Launch Event Highlights
During the launch event, representatives from the World Bank, SBFN, and member institutions shared their experiences with sustainable finance roadmap implementation, common challenges, and latest trends and best practices. The event also featured a panel discussion moderated by Ms. Nomindari Enkhtur, Advisor to SBFN, who praised the CBJ’s Green Finance Strategy as a major milestone for sustainable finance development in Jordan.
Significance of the Launch
The launch of the strategy is seen as a significant step towards aligning different parts of the financial system towards a common goal of accelerating sustainable finance development. The Sustainable Finance Forum (SBFN) has also launched a Toolkit on “Developing sustainable finance roadmaps” earlier this year to guide its members and other interested users in developing their own national strategies.
Public Availability
The CBJ’s Green Finance Strategy is now available for public viewing, marking an important step towards Jordan’s goal of becoming a leader in sustainable finance development.