EIB Global and Jordan Kuwait Bank have launched the first Green Transition Facility (GTF) guarantee in the region, unlocking $45 million in green investments for Jordan’s private sector. This initiative marks a key milestone in the European Investment Bank’s efforts to expand climate finance across the European Union’s Southern Neighbourhood, with Jordan Kuwait Bank serving as the first implementing partner. The facility combines long-term funding, risk-sharing, financial incentives, and technical assistance to support micro, small, and medium-sized enterprises (MSMEs) and mid-caps in undertaking climate action projects.
The Green Transition Facility addresses the persistent barriers MSMEs face in accessing finance for environmental sustainability, offering a comprehensive de-risking and capacity-building approach. A web-based tool, the Green Eligibility Checker, has been launched in Jordan to help financial intermediaries and enterprises quickly determine whether their projects meet EIB Global’s green criteria based on the EU taxonomy. This platform facilitates project origination, appraisal, and reporting, while EIB Global also provides advisory services to strengthen institutional capacity and climate strategy development.
Through the facility, Jordan Kuwait Bank will extend favorable loan terms to MSMEs investing in renewable energy, energy efficiency, water and wastewater, green mobility, and circular economy initiatives. The $45 million portfolio guarantee, supplemented by over $1 million in incentive grants and technical assistance, is designed to de-risk projects and encourage investment in sustainable solutions. The CEO of Jordan Kuwait Bank emphasized that this partnership represents both a responsibility and an opportunity to empower businesses, strengthen the green economy, and build long-term resilience in Jordan.
The initiative is supported by a €9 million contribution from Germany through the International Climate Initiative (IKI) Trust Fund, demonstrating a coordinated “Team Europe” approach to unlocking climate finance. German representatives highlighted the role of coordinated financial instruments and technical assistance in overcoming market failures and enabling private sector-led sustainable growth.
By combining finance, risk-sharing, incentives, and technical support, the Green Transition Facility and Green Eligibility Checker provide a scalable model for green MSME finance in Jordan and the wider region. EIB Global and its partners aim to empower the private sector as a key driver of climate resilience and transformation, showcasing the European Union’s commitment to a just and sustainable green transition.
