European Investment Bank Launches Green Transition Facility in Jordan

The European Investment Bank (EIB Global) has launched the Green Transition Facility in Jordan, a flagship green finance approach aimed at expanding climate finance across the European Union's Southern Neighbourhood. The facility will enable Jordan Kuwait Bank to provide more favorable terms to micro, small, and medium-sized enterprises (MSMEs) investing in renewable energy, energy efficiency, water and wastewater, green mobility, and circular economy projects.

Key Takeaways:

The Green Transition Facility will de-risk up to $45 million in green loans for MSMEs in Jordan.
The facility is supported by a €9 million contribution from Germany through the International Climate Initiative (IKI) Trust Fund.
Jordan Kuwait Bank is the first implementing partner of the Green Transition Facility in the region, leading the way in pioneering green MSME finance.
The facility combines funding, risk-sharing, technical assistance, and financial incentives to empower MSMEs and mid-caps in climate action.
The EIB's Green Eligibility Checker has been launched in Jordan to help financial intermediaries and enterprises quickly assess project eligibility for green finance.
The Green Transition Facility has been designed to demonstrate a scalable model for green MSME finance in Jordan and beyond.

Statistics:

€9 million: The amount contributed by Germany through the International Climate Initiative (IKI) Trust Fund to support the Green Transition Facility.
$45 million: The amount of green loans that will be de-risked by the Green Transition Facility for MSMEs in Jordan.
$1 million: The amount of incentive grants and technical assistance that will be provided to support the facility.
2023 (no date provided in the original text): The launch of the Green Transition Facility in Jordan.

Sources:

Jordan Kuwait Bank
International Climate Initiative (IKI) Trust Fund
European Investment Bank (EIB Global)