The European Bank for Reconstruction and Development (EBRD) is promoting green investment in Jordan through its Green Economy Financing Facility (GEFF) with a loan to the Housing Bank (HBTF). The loan includes co-financing from the Green Climate Fund (GCF); incentive grants provided by the European Union (EU); and technical assistance supported by the EBRD, EU and GCF.
The loan will help provide the private sector and local micro, small and medium-sized enterprises (MSMEs) with access to loans to boost investment in climate change mitigation and adaptation technologies and services. The financing will also be used to build the HBTF’s capacity and for awareness-raising activities on climate change mitigation and adaptation technologies among MSME sub-borrowers. To encourage investments in green 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. HBTF staff will also receive training on gender-responsive green finance to help address gender-specific supply and demand obstacles. An additional technical assistance package provided under the EBRD’s Corporate Climate Governance Facility will support the HBTF in developing a comprehensive environmental, social and governance (ESG) framework in line with international best practices. The package will also help the HBTF to implement an institutional transition plan, which will aim to progressively align its business practices and financial flows with the goals of the Paris Agreement. This will be one of the first projects in the EBRD’s southern and eastern Mediterranean (SEMED) region to incorporate such an approach to ESG and Paris alignment, and will set a good example for other banks to follow.
The HBTF was established in 1973 and is the second largest bank in Jordan by total assets.
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