Khaberni - A new national classification draft sets standards for economic activities that must be achieved in 9 sectors in order to be given the attribute of environmental sustainability, but it must achieve 3 priorities aimed at climate mitigation and adaptation, and the sustainable use of water resources, according to what was published by Al-Ghad daily.
This classification comes at a time when Jordan is facing urgent and interconnected environmental, economic, and social challenges that require decisive actions and sustainable investment. It serves as a tool to respond to these challenges and has been prepared by the Central Bank of Jordan and the Ministry of Environment, in cooperation with national and international partners.
The first draft of the Jordanian National Green Classification, whose details are published by "Al-Ghad", includes 52 activities that can be implemented in the designated 9 sectors, which are: agriculture, reforestation, sustainability, manufacturing, energy, water and sewage supply and waste management, transportation, tourism, construction, information and communication technology, and mining.
Mitigation of the impacts of climate change
The classification defines the 3 environmental objectives with priority as: mitigating the impacts of climate change, adapting to climate change, and the sustainable use and protection of water resources. Other objectives include the circular economy, pollution prevention and control, and the protection of biodiversity and ecosystems.
The classification project aims to direct public and private capital towards low-emission, climate-resilient, and nature-positive investments, and to reduce the practices of greenwashing.
The project serves as a national initiative to prepare the Jordanian Green Classification to identify environmentally friendly economic activities within a unified framework by defining environmental objectives, priority sectors, eligible activities, technical screening criteria, Do No Significant Harm (DNSH) rules, and minimum social protection standards.
The Ministry of Environment, Planning and International Cooperation, and the Central Bank of Jordan, in coordination with ministries and regulatory bodies, the financial sector, and with support from the World Bank, lead the project's implementation.
The project is expected to mobilize green finance locally and internationally, increase transparency and investor confidence, align financing with Jordan's climate commitments and green growth plans, and enhance reporting and oversight frameworks.
The Jordanian National Green Classification "JNGT" provides a joint classification system to determine when economic activities are environmentally sustainable and aligned with national strategic and environmental objectives.
This classification is designed for financial institutions, issuers, and project developers to categorize the use of proceeds and assets, for companies to assess activities and measure performance, and for public authorities to support the monitoring, verification, and reporting of green finance flows.
The classification approach includes that each economic activity in the classification encompasses two types of technical screening criteria, the first called Substantial Contribution (SC), used to determine if the activity substantially contributes to one of the three priority environmental objectives, following a traffic light system (green, yellow, or red).
The second criterion, Do No Significant Harm (DNSH), is used to determine whether the activity does not cause significant harm to the remaining environmental objectives.
The green color (aligned) symbolizes activities that meet the criteria and are considered environmentally sustainable and mitigate the impacts of climate change, as these activities operate with almost zero emissions or clearly align with a 1.5°C pathway, such as generating electricity using solar panels.
The orange color (transitional) refers to transitional activities that have not yet turned green, but meet temporary criteria, demonstrating that they are on a reliable path towards green.
These activities go beyond business as usual and are subject to expiration dates or improvement requirements to ensure they do not indefinitely remain in the orange range.
Meanwhile, the red color (ineligible) means activities that do not meet the thresholds of green or orange, and those explicitly excluded because they do not significantly contribute to the environmental objectives, or even cause harm to them.
Foundation for the Climate Agenda
The Jordanian National Green Classification provides a common language based on scientific principles, forming a basis for Jordan's economic development and climate agenda, and by providing a transparent and consistent framework for green activities, it reduces the risks of greenwashing, thereby directing crucial investment decisions, and building trust with investors.
The classification serves as a reference document for developing national strategies, regulations, and policies, enhancing alignment and coordinated and unified efforts between the public and private sectors.
Implementing the national classification is crucial for directing investment towards the national priorities specified in the Economic Modernization Vision, Nationally Determined Contribution document, and the National Policy on Climate Change 2022-2050, supporting resilience, resource efficiency, low-carbon growth, and capital mobilization.
In the field of agriculture, reforestation, and sustainability, the classification proposes economically relevant activities within the sector that can contribute to achieving environmental objectives, particularly adapting to climate change and sustainable water management.
Among the activities are improving irrigation system efficiency, transitioning to water-saving crops, and supporting hydroponic farming.
And the proposed activities related to managing coastal areas in Aqaba and the Dead Sea focus on promoting the sustainable use of protected marine areas, supporting coral reef resilience, integrated coastal zone management, and improving monitoring of the coastal ecosystem.
In the field of afforestation, reforestation, and sustainable forest management, the activities aim to expand the forest cover through afforestation, which involves planting forests in areas not previously forested, and reforestation, which includes restoring forests in areas where forests have been removed or degraded.
These efforts contribute to achieving environmental objectives to mitigate the impacts of climate change and protect biodiversity, particularly in Jordan, ensuring that these activities align with adaptation and mitigation priorities outlined in the National Adaptation Plan (NAP) and Nationally Determined Contributions.
