Jordan Inclusive, Transparent and Climate Responsive Investments Program for Results

Starting Date

Aug 24, 2021

End Date

Jun 30, 2028 (was June 30, 2026)

Budget

US$ 1,350 Million

Type of Program

Loan

Program Development Objective :

Improve accountability to foster climate responsive investments and growth.

The program aims to stimulate public and private investment in Jordan in order to achieve recovery from the COVID-19 pandemic. This program will assist Jordan in accelerating economic recovery and creating more job opportunities by increasing economic growth rates with a focus on green opportunities and creating job opportunities for youth and women.

The program also supports the implementation of key elements of the reform matrix that enhance the investment environment, make it responsive to climate change and able to take advantage of emerging opportunities and untapped potential. Implementation depends on the introduction of new or streamlined processes, clear roles and responsibilities, and strong feedback cycles that support the enhanced accountability framework. In addition to growth and investment, the Program will also help Jordan enhance its regulatory environment by strengthening transparency and accessibility of data, bolstering sound policy design that delivers effective new policies and investments, and better results.

The Program supports three Result Areas (RAs):

RA1

improving the accountability and fiscal space for public investment, including towards national climate goals.

RA2

improving business enabling environment and the capacity of key institutions to attract private investment and climate finance, including for tourism sector.

RA3

generating evidence and data for policy making implementation and stakeholder dialogue.

Through these Result Areas, the Program is expected to contribute to:

01 increasing the share of capital expenditure in total budget spending.

02 achieving progress toward Jordan's Nationally Determined Contributions and Paris Agreement goals.

03 streamlining and digitizing business registration and licensing reducing the compliance time and cost for businesses.

04 increasing accessibility and usability of statistical and administrative data.

The Program additional financing and restructuring significantly improves the program gender, climate and private capital mobilization tagging.

Notable Achievements:

01 Under the 2022 Open Data Inventory (ODIN) index, Jordan’s score has improved from 53 to 66, i.e., more than halfway towards the target of 73.

02 Approve and publish both the National Tourism Strategy and the Gender and Inclusion Project Plan in December 2021.

03 Improving the quality of regulatory processes by pursuing evidence-based and participatory decision-making across ministries and regulatory bodies. A dedicated Regulatory Impact Assessment (RIA) unit has been established at the Prime Ministry to ensure proper implementation of the RIA guidelines across all government entities.

04 The Program is rated satisfactory due to the achievement of critical Disbursement Linked Results (DLRs) IN 2021 and 2022 which supports the achievement of downstream results towards targeted outputs and outcomes.

05 The GoJ has significantly strengthened its climate agenda by:

scaling up its commitments to the Nationally Determined Contribution (NDC), significantly increasing emission reduction targets, and by prioritizing green public and private investment in its economic strategy for the next ten years.

Establishing the regulatory framework and digital infrastructure (the Measurement, Reporting and Verification system) for climate-responsive public and private investments which is a critical step towards the operationalization of the Climate Finance Governance System supported by the Program.

Adopting a roadmap for operationalizing the Climate Finance Governance System.

Establishing an enabling environment for green financing, and facilitating the development of a domestic green securities market, as part of introducing climate friendly investments.

Issuing the Green Bonds Guidelines and an instruction under the Climate Change Bylaw of 2019 included a definition of private and non-government financing for climate-responsive projects.

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