Developing a Green Taxonomy in Jordan

Anchored in national priorities such as Jordan Vision 2025, the Green Growth National Action Plan, and the Nationally Determined Contributions (NDCs), the taxonomy will provide clear criteria to classify economic activities as “green.”

Through this effort, Jordan aims to mobilize green finance, accelerate its climate commitments under the Paris Agreement, and operationalize national strategies. The taxonomy is also expected to position Jordan as a regional leader in sustainable finance, capable of accessing international capital markets and fostering investor confidence.

The taxonomy is being developed through a multi-stakeholder process coordinated by the Ministry of Environment and the Central Bank of Jordan, in partnership with the World Bank.

Jordan stands at a critical climate-finance juncture. The country is highly vulnerable to the impacts of climate change – facing extreme water scarcity, rising temperatures, and increasing energy demand. At the same time, it remains heavily dependent on fossil fuel imports and foreign capital.

To mobilize the green finance needed for this transition, Jordan requires a clear, credible, and locally relevant definition of “green.” A National Green Taxonomy will provide this, helping to:

• Attract international climate finance by aligning with global standards;

• Support regulators and financial institutions in managing climate risks;

• Guide public and private investments toward low-carbon, resilient sectors;

• Prevent greenwashing through transparent classification criteria.

The National Green Taxonomy is being developed through a collaborative approach, guided by the Ministry of Environment, the Central Bank of Jordan, and the World Bank. The work is implemented by a consortium led by Ricardo, in close collaboration with Climate & Company and the Royal Scientific Society (RSS).

A dedicated Green Taxonomy Working Group (GTWG) – bringing together key public institutions, financial regulators, and private sector stakeholders – oversees the process.

Key steps include:

• Reviewing global and national frameworks for alignment and interoperability;

• Identifying priority sectors based on Jordan’s climate and economic strategies;

• Defining technical screening criteria and environmental objectives;

• Conducting stakeholder workshops and consultations;

• Finalizing the taxonomy with a roadmap for implementation and capacity building.