The European Bank for Reconstruction and Development (EBRD) and Jordan’s Microfund for Women (MFW) have signed a US$ 4 million Green Economy Financing Facility (GEFF), including US$ 1 million of co-financing from the Green Climate Fund (GCF). The new facility to MFW is under the GCF-GEFF regional framework in Jordan, supporting the expansion of green lending to micro, small and medium-sized enterprises (MSMEs). These funds will help startups expand their businesses and promote their products and services on a larger scale within their communities.

Jordan’s financial institutions offer limited provision of green financing and technical assistance on investments targeting climate change mitigation and adaptation. The new funding for MFW will build capacity for green lending and contribute to the creation of a demand-driven market for investments in high-performance technologies and services that can support the green economy in Jordan. This is the second loan that the EBRD, European Union and GCF have provided to MFW, following a US$ 2 million facility in 2022 that aimed to extend green finance to the most underserved MSMEs in the country, particularly those led by women.

Under this new facility, MFW will also benefit from a comprehensive technical cooperation (TC) package funded by the EBRD, European Union and GCF for capacity building, implementation and monitoring of the programme. The package will include awareness-raising sessions to build MFW’s capacity in relation to climate change mitigation, adaptation technologies and gender-responsive on-lending. The EBRD will also provide TC under its Advice for Small Businesses programme to support entrepreneurs from MFW’s pool of beneficiaries, as well as other business owners with the know-how, to enhance their growth and sustainability, with a focus on areas including marketing, financial management and compliance with government regulations.