The Cities and Villages Development Bank (CVDB), which is Jordan’s first and only national development bank, has become the first financial institution in the Middle East to achieve accreditation to the Green Climate Fund (GCF)
The Green Climate Fund – a critical element of the historic Paris Agreement - is the world’s largest climate fund, mandated to support developing countries raise and realize their Nationally Determined Contributions (NDC) ambitions towards low-emissions, climate-resilient pathways. The Fund has reached a capitalisation of USD 13.5 billion to accelerates transformative climate action in developing countries. The financing is allocated towards various initiatives such as renewable energy infrastructure, forest conservation, and enhancing community resilience to climate-related disasters. Only accredited entities can access funding from the GCF and submit project proposals
The CVDB, which was founded in 1979, supports the projects of local bodies in Jordan to secure services aimed at the creation of basic public services and contribute to their development by mobilizing domestic and external financial resources and providing the necessary credit facilities for the implementation of these projects. CVDB was selected by the Ministry of Environment, which serves as Jordan’s National Designated Authority to the fund, to apply for GCF accreditation due to its extensive experience with municipalities in financing and monitoring local development projects
The ongoing partnership between the Global Green Growth Institute (GGGI) and the Climate Change Directorate of the Ministry, led by Eng. Belal Shqarin was instrumental in achieving CVDB’s accreditation. The CVDB has been working closely with GGGI and Jordan’s NDA since 2019 to reform and update its internal policies and strengthen institutional capacity to meet GCF’s stringent accreditation requirements
Mr. Osama Al-Azzam, the Director General of CVDB has welcomed this new development. “We are very happy to see our hard work over the past few years finally paying off. This is a major milestone in Jordan’s climate agenda as it opens a direct channel for the bank to access concessional climate finance. It will allow Jordan to leverage the bank’s own resources and scale up climate action across the country including in underserved areas. CVDB becoming the first Direct Access Entity (DAE) in the Middle East also demonstrates Jordan’s continued leadership in climate policy implementation in the region. We are grateful for our partners who helped us realise this achievement, especially GGGI and the Ministry of Environment” he noted.
The accreditation will allow the bank to access grants and concessional loans for medium-size climate projects between USD $50 and $250 Million, by submitting GCF concept notes and funding proposals that reduce Jordan’s greenhouse gas emissions and improve the country’s resilience to the negative impacts of climate change. By adding GCF projects to its portfolio, CVDB will take a strategic focus on climate action benefitting more Jordanians, combatting climate change, and facilitating green economic growth in rural areas
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Email: cvdb@cvdb.gov.jo
Website: cvdb.gov.jo
