Cities And Villages Development Bank Opens Climate Project Financing Window

(MENAFN- Jordan News Agency)

Amman, June 17 (Petra) -- The Cities and Villages Development Bank (CVDB) has announced the launch of a new funding window for climate-related development projects in Jordan, marking a major step toward supporting the Kingdom's transition to a greener, more sustainable economy.
Acting Director General Mohammad Al-Harahsheh said the bank is now accepting applications to finance projects that directly address the impacts of climate change and promote environmental sustainability. The initiative is aligned with Jordan's Economic Modernization Vision, which identifies green growth as a strategic pillar for long-term national development.
The announcement follows a recent Cabinet decision approving the master accreditation agreement between the CVDB and the Green Climate Fund (GCF), one of the world's largest sources of climate finance. Under the agreement, the CVDB becomes the Kingdom's primary accredited entity authorized to submit funding proposals to the GCF on behalf of public and private sector institutions.
"This agreement enhances Jordan's ability to attract international climate finance and strengthens the role of the bank as a national partner in climate-resilient development," Al-Harahsheh told the Jordan News Agency (Petra).
Through its GCF accreditation, the CVDB will facilitate access to grants and concessional loans for medium-scale climate projects ranging from $10 million to $250 million. Eligible projects must demonstrate a clear contribution to reducing greenhouse gas emissions or improving Jordan's capacity to adapt to the effects of climate change.
According to Al-Harahsheh, the agreement is also expected to boost the confidence of international financial institutions in Jordan's climate finance framework, especially the CVDB's ability to manage and oversee funded projects. The bank will be responsible for ensuring compliance with GCF environmental and social safeguards, with a focus on sustainability and long-term environmental impact.
The Cities and Villages Development Bank secured its GCF accreditation in March 2024, becoming the first financial institution in the Middle East to receive such recognition. The Green Climate Fund, established in 2010 under the United Nations Framework Convention on Climate Change, is tasked with helping developing countries pursue low-emission and climate-resilient development pathways. With a capital base of $13.5 billion, the fund plays a key role in supporting implementation of the Paris Climate Agreement.
Officials said the CVDB's new financing window will be open to municipalities, public entities, and eligible private institutions that meet the technical and environmental criteria set by the fund.
The move is part of broader national efforts to scale up climate investment, attract international funding, and support Jordan's commitment to global climate goals.

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