Solving climate change can requires the
mobilization of all segments of society, a region-specific coalition to
accelerate corporate climate action, and shaping COP28 as milestones for
public-private collaboration. This is why COP28 must include policymakers,
business leaders, financiers, banks, and industry experts to make the lead to a
net-zero transition.
اضافة اعلان
The MENA region is warming at twice the
global average and is projected to be up to 4°C warmer by 2050. In face of
this, regional players must increase their trust in sustainable finance, and
governments must facilitate initiatives to encourage partnerships (PPPs).
When looking at Jordan we see that its
GHG emissions are minuscule compared to peer countries. In 2018, Jordan's total
GHG emissions were 35.81 tonnes of carbon dioxide, which represents 0.06
percent of the global total, and emissions per capita are low and decreasing
and stand at 3.6. tonnes/capita.
Using World Bank shadow prices for carbon, from 2022 to 2030, Jordan could save an estimated $70 million through lower carbon emissions from the vehicular fleet.
Even with smaller emission, Jordan has
established ambitious GHG emission reduction targets relative to other
countries in the MENA region. It increased its commitment to reduce GHG
emissions from 14 to 31 percent by 2030, with 26 percent conditional on
financing and 5 percent unconditional. And the new 31 percent GHG reduction
target would imply 30,291 carbon dioxide equivalent (Gg) emissions compared to
43,989 CO2 eq (Gg) under business-as-usual in 2030.
Jordan can also benefit from development
and adaptation co-benefits with investments in climate change mitigation in the
transport and industrial sectors could benefit it. Climate actions can
create new growth opportunities through emerging green industries and
environmental services.
Climate actions can create new growth
opportunities through emerging green industries and environmental services.
Jordan's increased commitments are also
reflected in more ambitious sector targets, such as Jordan's EV fleet reaching
8.3 percent of the country's total vehicles. Average annual CO2 emissions are
expected to be 241,000 tonnes lower. Using World Bank shadow prices for carbon,
from 2022 to 2030, Jordan could save an estimated $70 million through lower
carbon emissions from the vehicular fleet.
Globally, countries need public and private
sectors to meet their Nationally Determined Contributions (NDC). In the MENA
region, companies need to catch up to the rest of the world in corporate
ambition related to national sustainability efforts.
Jordan needs $9.5 billion in investments to move toward low-carbon development and foster a greener economy.
In Jordan, businesses can play a crucial
role in protecting the country's economy, environment, and population from the
impacts of climate change. By accelerating commitment, execution capability,
and resource availability, investments in sustainability initiatives can open.
According to the World Bank Group's
Country Climate and Development Report, Jordan needs $9.5 billion in
investments to move toward low-carbon development and foster a greener economy.
Over 60 percent of that figure must come from the private sector (not including
the Aqaba-Amman Water Desalination & Conveyance).
Improving government practices
concerning public investment management and leveraging private investments,
piloting innovative government support mechanisms to strengthen public-private
partnerships, and scaling up State-Owned Enterprises role in financing green
infrastructure and climate-responsive projects can also mobilize green finance.
Jordan's investment also need financing
covering priority actions under the two strategic nexuses considered, building
on the NDC priorities and including projects contributing to adaptation and
resilience across the water, agriculture, energy, transport, and urban
(including green buildings) waste management) sectors.
The financial sector could significantly
address the financing gap to transition to a resilient, low-carbon economy. The
successful implementation of the Central Bank of Jordan’s Strategy for Greening
in the Financial Sector can be a significant step in increasing the climate
responsiveness of the financial sector in Jordan. It can also enhance climate
risk management, given the large size of Jordan's financial sector and the
impact of climate change on financial risks, which could spill over into the
real economy.
Investing in climate actions in renewable energy, construction, and agri-food sectors can create job opportunities and promote sustainable economic growth.
To mobilize green finance, Jordan
should take action to improve government practices concerning public investment
management and leverage private investments. This can be achieved by developing
a robust pipeline of climate-responsive capital investment, piloting innovative
government support mechanisms, and scaling up the role of State-Owned
Enterprises (SOEs) in financing green infrastructure and climate-responsive
projects.
Investing in climate actions in
renewable energy, construction, and agri-food sectors can create job opportunities
and promote sustainable economic growth.
Inclusion and engagement with young
people are also crucial in shaping the new narrative that brings about the
desired transformations needed to combat climate change. As today's youth are
the climate leaders of tomorrow, they possess the potential and capabilities to
create an enduring impact once mainstreamed.
The road to COP28 requires active
participation of young people in climate action efforts to create a more
sustainable future.
Hamzeh S. Al-Alayani is a board member of a Jordanian public-sector government investments
management company and a regular regional energy and industrial commentator.
Hamzeh holds an MBA from the University of Aberdeen, UK, and a BSc in
Mechanical Engineering.
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