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Project Case Study

Promoting a green economy in Jordan

Putting the Hashemite Kingdom of Jordan on the path to a green economy

The Hashemite Kingdom of Jordan is amongst the most water-scarce and sun-rich countries in the world, but unlike its neighbours, has limited fossil fuel reserves. Despite this, it is one of the most water and energy inefficient countries in the Middle East, importing at vast expense approximately 96% of its energy, and losing more than 2% of GDP a year to environmental degradation.

There are numerous opportunities for Jordan to pursue green growth, but it will come at a cost. Estimates put the price of placing Jordan on a green growth path at £1.2 billion over ten years, and possibly more.

In the current environment of low growth and high fiscal deficits, much of this money will have to come from the private sector.

Project info

Enabling Environment Reform

In partnership with

  • Ministry of Environment, Jordan
  • Ministry of Energy and Mineral Resources, Jordan
  • The Association of Banks, Jordan

Adam Smith International and our partners were asked in 2012 by l’Agence Française de Développement to assist the government of Jordan in promoting a green economy. Drawing on international best practice, we analysed the academic and project literature and met public and private sector representatives in and beyond Jordan, and highlighted key strengths and issues in Jordan’s green policy and investment framework.

In partnership with the Ministry of Environment, Ministry of Energy and Mineral Resources and the Association of Banks in Jordan we recommended a set of financial and fiscal incentives to encourage banks to lend and businesses to invest in areas relevant to the green economy such as renewable energy, energy efficiency, water efficiency, building, industry, agriculture, transport, infrastructure and tourism. These build upon the measures already put in place by government and financial institutions.

Recognising that a stable policy and enabling environment is as important for investment as specific incentives, we also recommended that the government make known its long-term commitment to green growth. Such a commitment has involved giving confidence that policies will be implemented, harmonising subsidies with appropriate compensation for the disadvantaged, and informing effective public-private consultation.

If Jordan invests in a green economy, it can generate 50,000 jobs and save the 2% of GDP it currently loses to environmental degradation each year.
Ahmed Qatarneh, Secretary General, Ministry of Environment, Government of Jordan

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