Towards a Green Economy in Jordan  

Jordan is one of the smallest economies in the Middle East, with a total GDP of US $27.5 billion and a population of 6 million, of which 13.3 per cent live below the poverty line 1 . Unlike other neighboring Arab countries, it is a non-oil-producing country with limited natural resources and minerals. The country faces persistent unemployment, in addition to a growing budget deficit and inflation.
Jordan’s economy is dependent on services including tourism and transport activities that provide 66 per cent of GDP. Industry contributes 30 per cent of GDP while agriculture counts for less than 4 per cent. Like many other developing countries, it has a rapid population growth of about 2.5 per cent (DoS, 2006). Furthermore, the nation is experiencing increased pressure on natural resources, widening income disparities and growing poverty. Countrywide, access to freshwater represents the most pressing challenge - both in quantity and quality.
This is followed by the relative scarcity of arable land and the acceleration of desertification, soil degradation and deforestation. Recent estimates of 2009 place the cost of environmental degradation at 2.35 per cent of the GDP in 2006.
The government of Jordan is currently supporting various policies, initiatives and programs aimed at achieving a green economy, such as: the complete removal of subsidies for oil in 2008; the adoption of the renewable energy law and fiscal incentive package on renewable energy and energy efficiency equipment in 2010; and, the establishment of the Eco-Cities
Forum, the Eco-Financing Seminar and the Zarqa River rehabilitation project. In addition, the government’s 2010 Executive Program highlights its pursuit of green economy development, by documenting the need to “launch a program for green services and industries to meet the requirements for adhering to environmental standards and turning
Jordan into a regional center for green services and industries.”
This Scoping Study reviews the current state of investments in Jordan and implications for a transition towards a green economy. The study looks at the economic, social and environmental challenges of Jordan, and identifies the sectors that appear to offer a significant potential for green investment to drive a transition towards a green economy. These sectors
relate to energy, water, transport, waste management, agriculture and tourism.