Jordan is highly vulnerable to climate change and nature degradation, but has constraints on financing options. However, Jordan has a good reputation for fiscal sustainability and governance, which creates opportunities to explore innovative financing options for climate and nature.
This toolkit reviews opportunities for expanding the sources of finance for climate and nature in Jordan, including the use of key performance indicator-related innovative instruments, and it makes some initial suggestions for steps to promote this financing.
The objective is to conduct a preliminary assessment of the types of financing instruments that may be suited to the Jordanian context and that can help Jordan, over time, to reduce the gap between the financing needs for climate and nature action and the actual funding the country can leverage from development partners and capital markets. The long-term goal is also to contribute to tackling the current high costs of capital through instruments that will help boost Jordan’s current credit ratings while supporting the improvement of the country’s natural capital.