Unlocking Green Finance Instruments for Jordan’s Energy Transition

Jordan’s energy transition, driven by high reliance on energy imports and the imperative to reduce emissions, requires substantial financial
capital. Green finance is a key enabler, yet its progress is shaped by Jordan’s early-stage landscape, where several tools remain underexplored and clear standards for defining green activities are still emerging. This paper seeks to identify the financial instruments best suited to support this transition. Drawing on desk research and key informant interviews, it examines a range of debt- and equity-based tools. The findings show that because energy-transition projects are both capital-intensive and high-risk, blended finance emerges as the most suitable pathway as it de-risks projects and mobilises private capital.
Therefore, the paper recommends the use of blended finance in Jordan as an effective model to accelerate Jordan’s energy transition.