The programme will support CBJ in developing a "conducive" environment to promote the transition to a carbon-free, climate-resilient financial system, according to public service TV Al Mamlaka.

It will also support Jordanian commercial banks in integrating climate risk assessments into their operations and adopting a more environmentally sustainable business model.

As a result, Jordanian companies will benefit from improved access to finance to increase their ability to adapt to climate change and invest in green and sustainable technologies.

CBJ Governor Adel Sharkas said: "Climate change poses challenges not only to the environment but also to the stability and resilience of financial systems in many countries.

“Through its partnership with EIB, CBJ affirms its commitment to building a sustainable financial sector capable of directing more investments toward environmentally friendly green projects, protecting companies from the risks of climate change, and supporting Jordan's transition to a low-carbon economy," Sharkas said.

EIB Vice-President Gelsomina Vigliotti said: "By working together, we can scale up the investments needed to achieve a sustainable and resilient future. The global expertise and technical experience of the European Investment Bank will support Jordanian banks in leading the green transition."

She added: "The European Investment Bank is pleased to work alongside the Central Bank of Jordan and our European partners to transfer global expertise in green finance to Jordan. By empowering local banks and financial institutions, we can accelerate climate action and ensure the benefits of sustainable finance reach all parts of the country."

EIB is a “strong” supporter of Jordanian companies. Since 2017, the bank has provided more than 1 billion euros in loans, in addition to providing guarantees covering loan portfolios valued at over 200 million euros, in partnership with eight banks and two microfinance institutions.

Improving access to green finance is a top priority for EIB in Jordan.

EIB designed the Greening Financial Systems programme, with funding from Germany through the International Climate Initiative (IKI), and it contributes to the work of the NDC Partnership, a global alliance of 130 countries and over 110 institutions, which aims to support achievement of the Paris Agreement and drive sustainable development.

Jordan joins a growing group of countries—including Ethiopia, Kenya, Nigeria, and Georgia—participating in EIB's Greening Financial Systems programme.

The activities agreed upon with CBJ within the programme aim to boost Jordan's financial system by integrating climate risks into regulatory frameworks and accelerating sustainable finance.

In the first phase, experts will conduct an assessment of the financial sector's ability to manage and disclose climate risks and finance green projects.

The results are expected to help CBJ in its continued development of its policy framework related to prudential requirements for managing climate risks.

Chargé d'Affaires of the German embassy in Jordan Guido Kemmerling, representing IKI and the German government, said: "It is very encouraging that today we are launching a programme designed to translate green policies into practical steps on the ground.”

He added that CBJ plays a “critical” role for the Jordanian economy, including its role in transforming it into a green economy.

“Climate change requires serious and lasting responses from all of us, such as the new partnership between CBJ and EIB. Germany is pleased to support this purposeful and forward-looking cooperation," Kemmerling noted.