The Association of Banks launches a guide for developing green financial products for banks and financial institutions.

The Association of Banks in Jordan launched on Wednesday the “Guide to Developing Green Financial Products for Banks and Financial Institutions,” in a move aimed at promoting the shift towards sustainable finance and developing banking tools that support the green economy and keep pace with national sustainability priorities.

 

The guide was launched during an event organized by the association in the presence of the Minister of Environment, Dr. Ayman Suleiman, the Deputy Governor of the Central Bank of Jordan, Dr. Ziad Ghanma, and representatives of banks, financial institutions, international bodies and partners concerned with green finance, in partnership with the German International Cooperation GIZ and with the support of the German Federal Ministry for Economic Cooperation and Development BMZ.

The Minister of Environment stressed that the shift towards a green economy and a blue economy has become a necessity imposed by environmental challenges and climate change.

He said that the government, through the second executive program of the economic modernization vision for the years 2026-2029, continued to focus on the axis of sustainability and green growth, while introducing the concept of the blue economy among the priorities of the next stage.

He added that the tools for the transition to a green economy are not possessed by governments alone, but require a genuine partnership with the private sector and the financial sector, noting that banks have become an essential partner in directing investments towards green and blue activities.

Suleiman pointed out that Jordan has great opportunities in the field of sustainable financing, especially in light of the stability it enjoys compared to the region, explaining that many international bodies now view the Kingdom as a regional platform for implementing international cooperation programs.

He said that choosing Jordan to host the regional office of the Green Climate Fund is an indication of international confidence in the Kingdom’s ability to manage and implement environmental and climate finance programs.

The minister reviewed a number of indicators related to the green transformation in the Kingdom, explaining that Jordan has made progress in reducing its carbon footprint, and that about 30 percent of the Kingdom’s energy mix now relies on renewable energy, in addition to the accelerated shift towards electric and hybrid vehicles.

For his part, Ghanem stressed that launching the guide for developing green financial products represents “an advanced practical step” that reflects the banking sector’s commitment to promoting sustainable finance and translating strategic directions into practical implementation tools on the ground.

He said that sustainability has become a key criterion in measuring the readiness of economies and their ability to withstand and stabilize, especially in light of the accelerating economic, climate and geopolitical challenges.

He added that international experiences have proven a direct link between economic and financial stability and the adoption of green finance strategies and practices within the financial sector, noting that the shift towards sustainable finance has become a strategic approach that reshapes financing priorities and directs resources towards more efficient and sustainable opportunities.

Ghanma explained that the vision for economic modernization emphasized the importance of having a proactive financial sector whose role is not limited to financing economic activities, but extends to directing capital towards value-added sectors and new growth engines, while placing sustainability at the heart of the national economic model as a lever to enhance productivity, stimulate innovation, and create job opportunities.

Dr. Maher Al-Mahrouq, Director General of the Association of Banks in Jordan, said that the guide is the result of a collaborative effort between the association and its partners from the German International Cooperation GIZ and the Ministries of Environment and Industry, Trade and Supply, within a national framework aimed at promoting the transition towards sustainable finance in the Kingdom.

He added that the importance of the guide stems from the fact that it is “a practical, applied tool that was developed specifically to meet the needs of banks and financial institutions and to help them move from the level of vision and strategy to the level of implementation and application.”

Al-Mahrouq explained that recent years have witnessed remarkable development in the national frameworks supporting green finance, whether through the Central Bank’s Green Finance Strategy for the years 2023-2028, or through the national classification of green activities, in addition to initiatives related to disclosure and inclusion of climate risks, noting that the real challenge is no longer in formulating frameworks, but in transforming them into applicable financial products within banks.

He explained that the guide provides an integrated methodology covering the green financial product development cycle, starting with understanding green finance and its classification criteria, through analyzing market and customer needs, and ending with designing the financial product, evaluating its feasibility, launching it, and monitoring it.

He pointed out that the guide includes a number of key aspects, most notably providing a clear methodological framework for developing green financial products within financial institutions, clarifying how to define activities according to national and international standards, thus reducing the risks of “green money laundering”, in addition to presenting practical tools for analyzing credit portfolios, identifying opportunities, and evaluation and selection mechanisms.

Al-Mahrouq stressed that the guide focuses on integrating the economic and commercial dimension into the design of financial products, in order to achieve a balance between sustainability and profitability, in addition to enhancing integration between the various departments within banks, such as credit, risk, marketing, and others.

He said that one of the most important messages emphasized by the guide is that green finance “is not a separate product, but rather a smart development of existing products by integrating sustainability standards into them and directing them towards activities with a positive economic and environmental impact.”

He added that the success of any green financial product depends on three main elements: understanding customer needs, achieving financial viability for the institution, and operational readiness within the bank. He explained that this balance allows for the development of scalable and sustainable green financial products.

Al-Mahrouq pointed out that the idea of ​​preparing the guide stemmed from the outcomes of the Green Finance Forum “Green Forum 2025” which was held last September, where the need for practical tools to support banks in designing green financial products was one of the most prominent recommendations that came out of the forum.

In this context, Al-Mahrouq announced the launch of the fourth edition of the Green Finance Forum “Green Forum 2026” on September 1st, under the patronage of the Governor of the Central Bank of Jordan, Dr. Adel Sharkas, entitled “Green Dialogue between the Public and Private Sectors: A Strategic Tool to Promote Sustainability.”

In addition, German International Cooperation representative Bader Al-Shalabi stressed that the banking sector is one of the main drivers for supporting economic growth and promoting the transition towards a green economy, through its role in directing capital and financing investments with a sustainable impact.

Al-Shibli said that green finance is no longer limited to theoretical concepts, but has become directly linked to the ability of the financial sector to provide and direct the necessary financing to achieve the goals of sustainable economic development, especially in light of the trends included in the economic modernization vision and the green finance strategy in Jordan.

He explained that the banking sector, along with finance companies and under the leadership of the Central Bank, plays a pivotal role in enhancing access to finance and enabling projects to launch, expand and invest, noting that financing and investment decisions are no longer based solely on the factors of “risk and return,” but also require consideration of the environmental and social impact and governance considerations.

Al-Shibli pointed out that the “Guide to Developing Green Financial Products” came to promote green finance practices within banks and financial institutions, explaining that the banking sector has made significant progress in this area, and the guide comes today to contribute to strengthening this trend by transforming the national classification of green activities that was issued at the beginning of the year into practical practices for designing financial products and granting credit.

He explained that the guide represents a “toolbox” that includes a set of practical tools that help product development teams design green financial solutions in a more systematic and effective manner.