Energy Sector Green Growth National Action Plan (GG-NAP) 2021-2025

2025 (GG-NAP) was developed by the Ministry of were integral to the success of this report, as they Environment with the support of the Global Green generously provided the project team with their Growth Institute (GGGI), under the leadership of H.E knowledge and expertise. These include: Prime Dr. Saleh Al Kharabsheh, Minister of Environment, and Ministry, Ministry of Planning and International benefited significantly from the effective directions Cooperation, Ministry of Agriculture, Ministry of of H.E. Eng. Ahmad Al Qatarneh, the Secretary Energy and Mineral Resources, Ministry of Water and General of the Ministry of Environment. Tremendous Irrigation, Ministry of Local Administration, Ministry support was provided by the Technical Advisor to the of Transport, Ministry of Tourism and Antiquities, Minister and Director of the Green Economy Unit, Ministry of Public Works and Housing, Ministry Dr. Jihad Alsawair. of Industry and Trade, Ministry of Finance, Jordan Renewable Energy and Energy Efficiency Fund, Cities Special acknowledgment goes to the sector focal and Villages Development Bank, Greater Amman points at the six key line ministries for their extensive Municipality, Aqaba Special Economic Zone Authority, input and coordination support throughout the Jordan Enterprise Development Corporation, the development process. Appreciation also goes to the Jordan Chamber of Industry, Jordan Chamber of GGGI for their technical assistance throughout the Commerce, Association of Banks in Jordan, Higher project and their continued commitment to support Council for Science and Technology, Royal Scientific Jordan’s transition to a green economy. Society, Department of Statistics, National Agriculture Research Center, Water Authority, the Jordan Valley The GG-NAP required a vast amount of expertise, Authority, GIZ, UNDP, NDC Partnership, EBRD, EU, research, consultation, and effort to complete. The AFD, FAO and World Bank. finalization of the document would not have been possible without the dedication of all the individuals Lastly, special thanks to the hundreds of individuals and organizations who worked together throughout who participated in meetings, workshops, reviews, etc. the development process. We would like to express for providing valuable information and feedback during our deepest appreciation to those who have worked the drafting process. This contribution in the interest on shaping and guiding this action plan over the past of supporting the Government of Jordan and its green two years. growth ambitions is sincerely appreciated. vii Energy Sector Project and Technical Team Project Team Ministry of Environment, Green Economy Unit ƒ Dr. Jihad Alsawair (Project Lead) / Technical Advisor ƒ Raja’ Bayer/ Ministry of Transport to the Minister of Environment and Director of Green ƒ Thaer Al-Momani/ Ministry of Water and Irrigation Economy Unit ƒ Rushdi Sheikh/ Ministry of Local Administration ƒ Afrah Al Hajjaj / Green Economy Unit ƒ Hanin Abuhamra / Green Economy Unit ƒ Shan Bader / Green Economy Unit GGGI’s Team of National and International Green Growth Experts Global Green Growth Institute ƒ Dr. Maha Al-Zu’bi ƒ Majdi Salameh ƒ Ahmed Al Amra / Country Representative, GGGI- ƒ Rishi Basak Jordan ƒ Ingvild Solvang ƒ Marshall Brown (Project Manager) / Senior Program ƒ Jan Stelter Officer, GGGI-Jordan ƒ Dr. James Seong-cheol Kang ƒ Diana Alejandra Quezada Avila ƒ Dr. Hussam Khasawneh Sector Line Ministries, Green Growth Focal Points ƒ Donovan Storey ƒ Christina Cheong ƒ Mohammed El Shebli / Ministry of Agriculture ƒ Laila Kasuri ƒ Shorouq AbdelGhani / Ministry of Energy and ƒ Theresa Sayavong Mineral Resources ƒ Mark Gibson ƒ Nadia Al-Qudah / Ministry of Tourism and Antiquities ƒ Mahfuzur Rahman Technical Support Ministry of Environment ƒ Belal Shaqarin / Director, Climate Change Directorate ƒ Nisreen Al Araj / Greater Amman Municipality ƒ Belal Qtaishat / Director, Natural Resource ƒ Wafa’ Shehadeh / Ministry of Water and Irrigation Projection Directorate ƒ Naimeh Ibseileh / Water Authority of Jordan ƒ Dr. Mohammad Khashashneh / Director, Hazardous ƒ Abeer Nassar / Jordan Valley Authority Substances and Waste Management Directorate ƒ Dr. Wael Ababneh / Ministry of Energy and ƒ Heba Zabalawi / Hazardous Substances and Waste Mineral Resources Management Directorate ƒ Lina Mobaideen / Jordan Renewable Energy and Energy Efficiency Fund ƒ Dr. Ayman Soleiman / Aqaba Special Economic Other National Institutions Zone Authority ƒ Hotaf Yassien / Aqaba Special Economic ƒ Sudki Hamdan / Department of Statistics Zone Authority ƒ Dr. Nizar Haddad / National Agriculture ƒ Waed Al-Jaafreh / Ministry of Planning and Research Center International Cooperation viii Green Growth National Action Plan 2021-2025 Contents List of Abbreviations ix About the Green Growth National Action x Plan 2021-2025 Executive Summary xiv 3. Energy Sector Sub-Objectives and Action Selection 15 3.1 Energy Sector Green Growth Sub-Objectives 15 3.2 Translating Green Growth Priorities into Actions 17 1. A Green Growth Framework 4. Implementation for the Energy Sector 01 Arrangements 20 1.1 Enhanced Natural Capital 02 4.1 Action Implementation 20 1.2 Sustainable Economic Growth 03 4.2 Future Planning and the next phase (post-2025) 24 1.3 Social Development and Poverty Reduction 03 1.4 Resource Efficiency 04 1.5 Climate Change Adaptation and Mitigation 05 2. Assessing Green Growth in 5. Energy Sector Green Growth Jordan’s Energy Sector 06 Actions 2021-2025 25 2.1 Energy Sector Green Growth Situation Analysis 06 2.2 Current Energy Sector Strategic Priorities 12 2.3 Energy Sector Stakeholders 14 ANNEX 1: Energy Sector Green Growth 51 Results Framework ix Energy Sector List of Abbreviations List of Abbreviations ASEZA Aqaba Special Economic Zone Authority MEMR Ministry of Energy and Mineral Resources CO2 Carbon dioxide MtCO2e Million metric tons of CO2e emissions CSP Concentrated solar power MoEnv Ministry of Environment DAE Direct Access Entity MoF Ministry of Finance DOS Department of Statistics MOLA Ministry of Local Administration EBRD European Bank for Reconstruction and MOPIC Ministry of Planning and International Co- Development operation EE Energy efficiency MoT Ministry of Transport EMRC Energy and Minerals Regulatory Commis- MPWH Ministry of Public Works and Housing sion MRV Monitoring, Reporting and Verification ESCO Energy service company NEPCO National Electric Power Company EV Electric Vehicle NDC Nationally Determined Contributions EU European Union NGO Non-Governmental Organization GAM Greater Amman Municipality NEEAP National Energy Efficiency Action Plan GCF Green Climate Fund NERC National Energy Research Center GDP Gross Domestic Product NREAP National Renewable Energy Action Plan GEF Global Environment Facility PPP Public-private partnerships GG-NAP Green Growth National Action Plan R&D Research and development GGGI Global Green Growth Institute RE Renewable energy GHG Greenhouse gas ROI Return on investment GNI Gross National Income RSS Royal Scientific Society GoJ Government of Jordan SDG Sustainable Development Goal JCI Jordan Chamber of Industry TBD To be determined JEA Jordan Engineers Association UN United Nations JGBC Jordan Green Building Council UNFCCC United Nations Framework Convention on JSMO Jordan Standards and Metrology Organi- Climate Change zation UNIDO United Nations Industrial Development IEA International Energy Agency Organization IFC International Finance Cooperation USAID United States Agency for International Development JREEEF Jordan Renewable Energy and Energy Effi- ciency Fund x Green Growth National Action Plan 2021-2025 About the Green Growth National Action Plan 2021‑2025 Jordan’s primary national development strategy ends meet.6 High public debt and a likely reduction in Jordan Vision 2025 has set high ambitions for the foreign investment and tourism sector revenues will country’s socioeconomic development in the 2015- further test the long-term resilience of the economy. 2025 period. With this strategy, Jordan hopes to The economy is now estimated to shrink by about achieve an economic growth rate of 7.5% in 2025, 3.5%, unemployment is expected to exceed 20%, and while striving to bring the poverty and unemployment pressures on natural resources (particularly water) rates as low as 8% and 9.17%1, respectively. To achieve and vulnerable communities to intensify.7 this vision, the government has defined a set of priorities and actions based on strong private sector This unprecedented set of circumstances is a serious development and resilience to external economic challenge in the short term, but it presents an shocks. While the environment and climate change opportunity for the Government of Jordan to refocus are not central features in the Jordan Vision 2025, its efforts on designing an economic growth approach several environmental priorities are addressed, that will foster long-term resilience. Green growth is including climate change adaptation, water and energy one strategic approach that can support this effort. efficiency, waste management and natural resource The Ministry of Environment began developing the protection. Importantly, the document calls for the Green Growth National Action Plan 2021-2025 in development of the green economy in six targeted late 2018 as a next step toward implementation of sectors: Energy, Transport, Water, Waste, Agriculture the recommendations in the National Green Growth and Tourism.2 Plan, under the request of the Cabinet of Ministers. The GG-NAP outlines sector-level green growth Throughout 2018 and 2019, Jordan’s economy frameworks and actions for the Agriculture, Energy, experienced a steady but low growth, with real GDP Tourism, Transport, Waste and Water sectors to at just under 2.0%. Substantial efforts have been support implementation of Jordan’s green growth taken to address the central government’s debt, which vision and strengthen future ability to recovery reached 99.1% in 2019, including through introducing and contain shocks from catastrophic events such fiscal reforms such as the passage of the 2019 Income as COVID 19. Tax Law.3 However, in early 2020, Jordan, like the rest of the world, was shaken by the global COVID19 pandemic. The implementation of public health measures to limit the spread of the virus brought The Green Growth National Action the economy to a standstill, leaving many Jordanians Plan 2021-2025 lays out pathways for worse-off.4 This new economic situation poses a sustainable development that will increase significant risk to Jordan in the short term. With an unemployment rate of 19%5 at the end of 2019 and resilience, strengthening Jordan’s capacity to a slowdown of business-as-usual economic activity, contain shocks and recover from catastrophic families and small business will struggle to make events such as COVID-19. 1 GoJ. “Jordan 2025: A National Vision and Strategy,” 2015. 2 GoJ. “Jordan 2025: A National Vision and Strategy,” 2015. 3 The World Bank. “Jordan’s Economic Update — April 2020,” 2020. 4 Reuters. “Many Jordanians struggling as country emerges from COVID-19 lockdown, U.N. agency says,” 2020. 5 Department of Statistics, 2019. 6 UNDP. “Impact of COVID-19 on Households in Jordan”,2020. 7 The World Bank. “Jordan’s Economic Update — April 2020,” 2020. xi Energy Sector About the Green Growth National Action Plan 2021-2025 Green growth, defined as “Economic Growth that is approved the report “A National Green Growth environmentally sustainable and socially inclusive”,8 Plan for Jordan” (NGGP). Having received a special is a multi-sector development approach that is aligned mention by the League of Arab States for being a with both the 2030 Sustainable Development Agenda best practice example to be replicated in the region, and Jordan’s Nationally Determined Contributions the NGGP assesses Jordan’s green growth potential (NDC) under the Paris climate change agreement and creates a roadmap to achieve a green economy of 2015. In 2017, as a first step towards achieving transition in Jordan through strategic direction and green growth in Jordan, the Cabinet of Ministers recommendations (Box 1). BOX 1 About the National Green Growth Plan for Jordan The NGGP charts out a plan for Jordan to achieve an expanding yet sustainable and resilient economy that ensures the creation of green jobs for its citizens and increased investment in green projects. The NGGP uses a cost-benefit analysis approach to identify the challenges and opportunities for project implementation and focuses on tackling these barriers in the six green growth sectors: Agriculture, Energy, Tourism, Transport, Waste and Water. Four driving principles of green growth are identified and mainstreamed across the actions in the Green Growth National Action Plan 2021-2025: Transparent governance processes and enforcement of legislation Mechanisms to incentivize green growth Integrated planning processes that value societal impacts Behavior shifts and capacity building To achieve the strategic vision laid out in the NGGP, principles of green growth implementation (see Box 2). the Ministry of Environment (MoEnv) worked in Detailed descriptions of priority policy and investment partnership with key national stakeholders to develop actions are included in the sector action plans, which the Green Growth National Action Plan 2021–2025 will serve as the core of Jordan’s green growth, climate (GG-NAP). The GG-NAP is presented through a series change and sustainable development agendas in the of six national action plans that serve as sector‑level 2021 to 2025 period. Some of these are already under green growth agendas. Each GG-NAP provides consideration by donors and investors. Many are implementable actions to achieve the five national included in Jordan’s NDC Action Plan and are climate green growth objectives and embody the four driving finance opportunities. 8 Global Green Growth Institute. “GGGI’s Strategy 2030,” 2019. xii Green Growth National Action Plan 2021-2025 BOX 2 Why the Green Growth National Action Plan 2021-2025? The next step towards implementing the recommendations of the National Green Growth Plan for Jordan, the Action Plan for Agriculture, Energy, Tourism, Transport, Water, and Waste sectors: Elaborates and mainstreams green growth, climate change and sustainable development objectives 1 into sectoral strategic frameworks. This will encourage formulation of greener projects, and the implementation of policies that will strengthen the enabling environment for greener investment and private sector development. These priorities are aligned with the SDGs and the NDC Action Plan9 as well as national sector-level priorities, which will further prepare the government to mainstream sustainable development into the post-Jordan Vision 2025 national development plan. 2 Strengthens cross-sector collaboration. Multi-stakeholder coordination and collaboration is central to designing and implementing green growth actions, as it can maximize co-benefits. The overall development process and the actions in each sectoral plan were intentionally designed to enhance such collaboration. Such activities lead to increased awareness and behavior change among decision makers, which can further strengthen the enabling environment for future investment in green growth. 3 Emphasizes the importance of improving the enabling environment for green growth. During the initial phase of green growth implementation in Jordan, substantial focus on the enabling environment is needed. Each action description identifies the enabling actions (such as supporting technical assistance programs) required for the responsible institution to be more successful in securing investment for implementation – either from public budget, private sector investors or donors. The development of the action plan was undertaken The GG-NAPs were developed with technical support through a highly collaborative approach between from the Global Green Growth Institute (GGGI), who the Ministry of Environment and the line ministries worked with the Ministry of Environment to conduct responsible for guiding each sector. Sector-level green wide-ranging stakeholder consultations in 2018 and growth focal points were established and ministerial 2019. The strategic objectives, sector sub-objectives leadership was engaged through the Higher Steering and actions were identified and formulated through an Committee for Green Economy to secure endorsement. iterative process linked as closely as possible to existing This experience demonstrated the important and sectoral priorities. Non-government stakeholders and growing role the Ministry of Environment plays in experts were also consulted to ensure alignment with facilitating action across different issue areas. The broader sectoral priorities, and to bridge local context network of green growth and climate action advocates and international best practice. developed in recent years is a powerful tool for implementing green growth in Jordan. 9 Clima-Med EU. “Jordan approves NDC Action Plan to achieve the implementation of its commitments to the Paris Agreement,” 2019. xiii Energy Sector About the Green Growth National Action Plan 2021-2025 Figure 1 shows a summary of the green growth planning and implementation in Jordan. Greener Sustainable Projects Economic Growth Stronger Enabling Social Environment for Development and Green Investment Poverty Reduction Green SME Climate Change Analyzes the Development Adaptation and challenges and Mitigation opportunities for green growth Operationalizes green growth implementation concepts into sectoral objectives and actions; Green Employment Resource in Jordan; Opportunities Efficiency Provides a Establishes a network of green roadmap for growth advocates across implementation; government; Increased Enhanced Sets the stage for future national Awareness and Natural Capital development planning; Behavior Change Green Growth Planning Action Green Growth and Mainstreaming Implementation Impacts FIGURE 1 Green Growth Planning and Implementation in Jordan xiv Green Growth National Action Plan 2021-2025 Executive Summary The Energy Sector Green Growth Action National energy installed capacity having risen to around 10%. Until Action Plan 2021-2025 (GG-NAP) outlines a green 2015, the electricity sector in Jordan was dominated by growth framework and actions for the sector aligned conventional energy sources, but with the implementation with the National Green Growth Plan (NGGP), Jordan of several utility-scale PV and wind projects, the current Vision 2025, and Nationally Determined Contributions share of renewable energy in the electricity mix is above (NDCs) under the Paris agreement. 10%. The country expects its share of renewable energy for electricity generation to reach 35% of the total At the heart of the green growth approach lies the installed capacity by 2023.11 Energy efficiency (EE) is the leveraging of the sector’s resilience through economic next frontier for Jordan, as it can help reduce the overall growth that is environmentally sustainable and socially energy intensity of the economy and offer new market inclusive. The GG-NAP outlines five national green development and job opportunities. Energy efficient growth objectives on which the Energy Sector GG-NAP transport, buildings, and appliances, as well as behavior was developed: change and awareness campaigns, can support the government’s goal of increasing energy efficiency. 1. Enhance Natural Capital 2. Sustainable Economic Growth Energy is a critical infrastructure and service sector 3. Social Development and Poverty Reduction required for other economic sectors to function. 4. Resource Efficiency Investing in sustainable energy is, therefore, a critical 5. Climate Change Adaptation and Mitigation green growth enabler. The Energy Sector Green Growth National Action Plan 2021-2025 has been developed From these five national objectives, the Energy Sector with this aim in mind, and would lead to the following GG-NAP identifies 16 sector sub-objectives that transformational impacts: serve to mainstream the overarching green growth objectives into energy sector policies and investments. ƒ Supporting Jordan’s objectives to achieve a cleaner energy mix through renewable energy as well as Jordan is currently at a critical juncture of its green a reduction in national Green House Gas (GHG) growth transition, with the energy sector as a driving emissions of 14%.12 force for change. Jordan has achieved significant ƒ Promoting the revitalization of the energy services success in the field of renewable energy implementation, market and the pursuit of energy sector innovation attracting over USD 5 billion in investment in the as a driver of future economic growth and sector, and exceeding its own expectations in terms of employment. renewables contribution to the energy mix. However, ƒ Increasing the readiness of key national institutions its first-mover status and commitment to providing to attract climate finance. affordable access to sustainable energy has come with ƒ Emphasizing the importance of achieving energy some unintended economic consequences. The level efficiency through green building and construction, of subsidization and various technical and managerial electric transport, and appliances. capacity challenges at the national energy utility are key contributors to the rise in Jordan’s sovereign debt, The Ministry of Environment (MoEnv) and the Ministry increasing from 55% of GDP in 2009 to 99.1% at the of Energy and Mineral Resources (MEMR) worked in start of 2020.10 This debt is hindering the public sector’s partnership with the support of national stakeholders and ability to respond to the COVID-19 pandemic, and to the Global Green Growth Institute to identify 12 priority stimulate investment in key economic sectors. actions to achieve green growth through the energy sector as shown in Table 1. The implementation of these In the last decade, the electricity sector has witnessed actions is estimated to cost USD 85,300,000, which will significant growth with the installed capacity of combined require a mix of public, private sector and donor support cycle increasing around 70%, and the share of renewable for its implementation. The actions include: 10 The World Bank. “Jordan’s Economic Update — April 2020,” 2020. 11 NEPCO. “Annual Report 2018,” 2018; and MEMR. “National Renewable Energy Action Plan 2018-2023,” n,d. 12 1.5% unconditional, 12.5% conditional reductions according to the NDC. xv Energy Sector Executive Summary ƒ 4 investment preparation and demonstration capacity gaps that lead to higher costs, risk levels actions. These projects are at various levels of or uncertainty in decision making. These include readiness: some require feasibility analysis, while programs to support innovation, institutional others are investment-ready. Many are suitable reform and coordination. candidates for public-private partnerships or direct private sector investment, and others are 11 out of 12 of these actions contribute to the opportunities to leverage climate finance. objective of Climate Change Adaptation and ƒ 8 enabling policy and institutional reform Mitigation, which are considered to be “Climate Action actions. Given the current gaps in available Priorities”. In addition, some of them can be found in fiscal resources, these actions intend to attract Jordan’s NDC Action Plan and forthcoming Green investment by addressing policy barriers and Climate Fund Country Programme. TABLE 1 025 Summary of Jordan’s Energy Sector Green Growth Action Plan 2021-2 Relevant Green Growth Objectives Total Estimated Social Development Resource Efficiency Enhanced Natural Sustainable Climate change Implementation Cost and Poverty Action Title Mitigation and (USD) Capital Economic Growth Reduction Adaptation # Improve Energy Demand Management through 3,5000,000 EN01 Development of a Smart Electricity Grid x x x Develop Industrial Renewable Roadmap and 1,000,000 EN02 Investment Plan x x Improve the market for green building and 1,000,000 EN03 construction services x x x x Develop and Implement a National Green Building 3,000,000 EN04 Strategy and Action Plan x x x Conduct Energy Efficiency Retrofits for 1,500,000 EN05 Public Buildings x x x Implement Electric Vehicle Charging Stations and 16,300,000 EN06 Services Provision in Greater Amman Municipality x x x through a Public-Private Partnership Develop a Behavior Change Campaign and 9,000,000 EN07 Financial Mechanism to Increase Use of Energy x x x Efficient Appliances in Jordan Develop and Implement a National Energy Storage 10,000,000 EN08 Action Plan and Investment Pipeline x x x Increase Public Investment in Energy Sector 15,000,000 EN09 Research and Development x x Achieve GCF Accreditation for the Jordan 1,000,000 EN10 Renewable Energy and Energy Efficiency Fund x x x x (JREEEF) Improve the Enabling Environment and Capacity 1,000,000 EN11 Development Support for the Growth of the x x x x Energy Services (ESCO) Market Implement the Energy Sector Monitoring, 3,000,000 EN12 Reporting and Verification (MRV) System x x

1 Green Growth National Action Plan 2021-2025 1. A Green Growth Framework for the Energy Sector Green growth is a new strategic approach for the These objectives reflect Jordan’s unique institutional Government of Jordan (GoJ) that integrates principles setup, political and economic realities, and long-term of inclusive, sustainable economic growth into the growth ambitions. National-level plans and strategies existing national context and priorities. Implementing were reviewed and used as inputs to guide and this green growth approach will allow Jordan to shape the objectives, developed into sector-level achieve its socioeconomic development targets while sub‑objectives (see Chapter 3). The Energy Sector Green simultaneously addressing environmental risks and Growth National Action Plan (GG-NAP) 2021-2025 was climate change – all of which are critical to achieving developed as a partnership between the MoEnv and the Sustainable Development Goals (SDGs), as shown the MEMR, with green growth focal points established in Figure 2 below. At the outset of the green growth within the latter and the Greater Amman Municipality planning process, visioning exercises and consultations (GAM), in order to ensure consistent feedback from the were held with national stakeholders through which five technical and management levels. Figure 3 shows the national green growth objectives were established.13 process for developing the energy sector GG-NAP. DECENT WORK AND LIFE LIFE ECONOMIC GROWTH Sustainable Economic Growth BELOW WATER Enhanced Natural Capital ON LAND Improve the enabling environment for Improving the quantity and quality of INDUSTRY, INNOVATION green growth by creating opportunities to REDUCED natural resources used to generate CLEAN WATER AND INFRASTRUCTURE INEQUALITIES AND SANITATION participate in the green economy across all economic growth and ecosystem services sectors and members of society. that support economic activities. SUSTAINABLE CITIES AND COMMUNITIES ‫النمو االقتصادي واالستدامة‬ AFFORDABLE AND CLEAN ENERGY (‫رأس املال الطبيعي )املوارد الطبيعية‬ NO POVERTY ‫تحسني البيئة التمكينيه للنمو األخرض من خالل خلق فرص‬ ‫تحسني كمية ونوعية املوارد الطبيعية املستخدمة لدعم النمو‬ ‫للمشاركة يف االقتصاد األخرض عرب القطاعات املختلفة‬ ‫االقتصادي وخدمات النظم اإليكولوجية التي تدعم األنشطة‬ CLIMATE ACTION .‫ومشاركه كافة رشائح املجتمع‬ RESPONSIBLE CONSUMPTION .‫االقتصادية‬ GENDER EQUALITY AND PRODUCTION Climate Change Adaptation Resource Efficiency Social Development and and Mitigation Improving the efficiency of the Poverty Reduction Improving how resilient Jordan’s economy process of converting resources into Improve the way in which the benefits is to ecological and climate-related shocks economic outputs. of economic development are and risks and reducing the economy’s distributed across different genders, impact on global climate change. ‫كفاءة استخدام املوارد‬ social groups and regions. ‫تحسني كفاءة استخدام املوارد الطبيعيه وعملية‬ ‫خطر التغري املناخي والتكيف والتخفيف‬ .‫تحويلها إىل مخرجات اقتصادية‬ ‫التنميه االجتامعيه والحد من الفقر‬ ‫تحسني مرونة االقتصاد األردين يف مواجهة الصدمات واملخاطر‬ ‫تحسني الطريقة التي يتم بها توزيع فوائد التنمية‬ ‫البيئية واملناخية والحد من تأثري االقتصاد عىل تغري املناخ‬ ‫االقتصادية للوصول اىل مختلف الفئات و كافة املجموعات‬ .‫العاملي‬ .‫االجتامعية واملناطق‬ FIGURE 2 the Relationship between the Five National Green Growth Objectives and Sustaina ble Develop ment Goals 13 This process reflected and built on the 5 green growth outcomes proposed in the National Green Growth Plan.

2 Energy Sector A Green Growth Framework for the Energy Sector National Kickoff Sector Preliminary Bilateral Action Plan Workshop Consultation Validation Consultations Validation and Workshop Workshop and Action Approvals Over 200 Formulation Process national Small group and Presentation of stakeholders bilateral sector sub- Additional Review commitee from all sectors consultations; objectives and expert meetings meeting; and types of action proposals to deliver on institutions; Technical visit Green Growth received; validation from Energy Technical Green growth workshop sector green Feedback Commitee review ; capacity building feeback; growth experts summarized as: and visioning Cabinet review to collect and 1. Increase private Technical support workshop. and approval. refine actions. sector consultation; and deep-dive for action 2. Use formulation. market-based mechanisms where possible; 3. Be more innovative; FIGURE 3 Process for Developing the Energy Sector GG-NAP The Energy sector in Jordan is responsible for global discussion on how to address climate change, managing the production and distribution of energy for as well as being a key national player in the country’s all purposes in the Kingdom. The sector is composed of economic growth and development. The following government actors, responsible for strategic planning; sections describe the relationship between each of the energy regulation authority, and the utilities that Jordan’s national green growth objectives and the manage the distribution of power for the industrial, energy sector. Chapter 2 carries out an assessment commercial, and residential sectors, among other of Jordan’s performance against these objectives in uses. The energy sector is the central player in the Jordan’s energy sector. 1.1 Enhanced Natural Capital Jordan’s first national green growth objective is to enhance energy (RE) is regarded as the most prudent way the country’s natural capital. For that purpose, it aims to forward to strengthen a country’s natural capital. improve the quality and quantity of natural resources used to generate economic growth and provide Many forms of energy production require ample ecosystem services that support economic activities. and reliable water supply, a resource that is in short supply in many parts of the world, as is the case Energy is a vital component of natural capital, as natural in Jordan. Water is used at various stages of the resources are the basic elements from which energy power generation cycle, including fuel extraction is produced. Primary fuels such as coal, oil, natural and processing (mining and refining, liquefaction and gas, and uranium are considered non-renewable gasification of oil, gas, coal, uranium, as well as in the natural resources, while. on the other hand, primary production of biomass/biofuels through agriculture) energy flows like solar, wind, and hydro are considered and generation (coal, gas, oil, nuclear, and biomass renewable resources. Unlike primary flows, primary plants). The power sector is one of the biggest water fuels are located in deposits within the Earth, that, in users in the world. On the water supply side, energy order to be used, must be discovered and extracted. needed for treatment and distribution accounts for as Sustainable extraction and management of these much as 80% of water supply cost, so an insufficient resources is critical to avoid their drastic depletion or supply of affordable energy will have negative impacts the degradation of the natural environments in which on the price and availability of water, especially in they are located. Enhancing the share of renewable regions where water is in short supply.14 14 OECD & IEA. “OECD Green Growth Studies,” 2012.

3 Green Growth National Action Plan 2021-2025 Dependence on liquid hydrocarbons for vehicle, human health and the environment. Poor combustion aviation, and marine transport is not only costly of coal can severely deteriorate local air quality.15 for importing countries but it is also a source of tension in geopolitical relations and a major source Sustainable Development Goals: 7 (Affordable of air pollution in urban areas. When burned, coal is and Clean Energy), 11 (Sustainable Cities and considered the “dirtiest” of all fossil fuels, with the Communities), 15 (Life on Land) byproducts of its combustion being hazardous to 1.2 Sustainable Economic Growth Jordan’s second national green growth objective is to developing countries have achieved significant ensure sustainable economic growth. In particular, economic development with rapid urbanization and the aim is to improve the enabling environment for industrialization. The relation of rapid economic the creation of long-term, inclusive socioeconomic growth, industrialization, and energy production is development, as detailed in the Jordan Vision 2025. directly causing environmental degradation, which poses a threat to industrialization and civilization. Energy is a key element for achieving SDGs related Finding out a way to achieve mutual benefits between to poverty, hunger, education, gender equality, energy production and environmental protection health, communicable diseases, and environmental should be considered one of the essential factors of sustainability. That is mainly because almost all economic growth. production and consumption activities require energy as a basic input. Therefore, energy is recognized as RE and EE have been acknowledged as being the fundamental need for economic development. key elements in the fight against environmental Economic productivity is driven by energy and is degradation, as well as in satisfying energy demand considered to be the contributor of at least half the in a cleaner and more sustainable way. While RE can industrial growth in a modern economy.16 Historically, reduce environmental degradation by supplying clean power crises have been linked to economic growth energy, EE measures are expected to be the main challenges, and vice versa. factor in reducing energy intensity besides being an indicator of successful decoupling. Given the importance of the energy sector in economic growth, sustainable management is crucial Sustainable Development Goals: 8 (Good Jobs in order to ensure sustainable economic growth. and Economic Growth), 9 (Industry, Innovation Sustainable economic and social development are and Infrastructure), 16 (Peace, Justice and Strong dependent on sustainable energy utilization. Many Institutions) 1.3 Social Development and Poverty Reduction Jordan’s third national green growth objective is to achieve empowerment are policy agendas that help support social development and poverty reduction. To social development and poverty reduction, and they this end, it aims to increase the equity with which are a critical part of the overall economic growth. A the benefits of economic development and access to 2015 McKinsey study found that women generate services are distributed across society. only 37% of the global Gross Domestic Product (GDP), but that closing this gap could add between USD 12 Social development and poverty reduction are central and 28 trillion to the global economy.17 In the MENA concepts to Jordan’s long-term development agenda region, women generate only 18% of GDP, suggesting and are a core component of inclusive green growth. greater inclusion is a major economic growth Achieving this objective requires special attention to opportunity. Furthermore, access for marginalized reducing inequalities in society, unlocking access to groups and those excluded from markets, services opportunity and extending the benefits of growth to and spaces are required for sustainable growth. all members of society. Gender equality and women’s Accordingly, green growth recognizes women and men 15 OECD & IEA. “OECD Green Growth Studies,” 2012. 16 Foran, Barney, and Franzi Poldy. Future Dilemmas: Options to 2050 for Australia’s Population, Technology, Resources and Environment, 2002. 17 McKinsey Global Institute. “How advancing women’s equality can add $12 trillion to global growth,” 2015.

4 Energy Sector A Green Growth Framework for the Energy Sector with a sense of equity, and the poor and marginalized Science, Technology, Engineering and Math (STEM) as not simply vulnerable, but as active agents of change related roles and leadership.20 Comparatively, 22% for more sustainable growth. of workers in oil and gas are women, indicating that women are more attracted to the opportunities in the ‘Just Transition’ is embedded in the Paris Climate sustainable energy sector.21 A multifaceted approach is Agreement in ensuring the rights of workers and needed to bring more women into the sector, including communities directly impacted by the transition supporting women in STEM related educations and towards RE solutions. This means supporting the work removing existing barriers to entering the workforce force in oil and gas industries in adjusting to new labor and advancing their careers. Successful approaches will market demands and opportunities. The energy sector broaden the talent base in the sector, and contribute to has been historically important to job creation, as large the overall socio-economic co-benefits associated with numbers of workers are needed to explore and extract women’s empowerment and gender equality.22 fuel sources. Studies show that in the future, significant opportunities for job creation also exists in the RE and The issue of access to affordable and reliable energy EE sectors. Globally, 11 million people were employed services is essential to human development and in the sector worldwide in 2019, compared with 10.3 economic growth. This has implications for sector- million in 2017.18 Opportunities for job creation vary level policies, including fiscal policies that can include by technology, Solar PVC tops the list followed by subsidies or introduction of taxes, which in turn, can bioenergy, hydro, and wind power industries.19 free public spending to offset negative impacts on low EE measures, such as building retrofits and energy income households. Public support for such initiatives management services, are often labor intensive as well. is essential to accomplish a successful implementation. Closing the gender gap in the energy sector can Sustainable Development Goals: 1 (No Poverty), 4 significantly contribute to a greater participation of (Quality Education) 5 (Gender Equality), 10 (Reduced women in the labor market. Globally, 32% of workers Inequalities) in the sector are women, and the gap is wider in 1.4 Resource Efficiency Jordan’s fourth national green growth objective is to Energy resources, as they are found in nature, are achieve resource efficiency. This can be defined as labelled as primary energy, i.e. natural gas; crude improving the efficiency – reducing the wastefulness – oil; biomass; solar radiation; energy from wind or of the economy by achieving a higher efficiency in the water flow. Each country has its own natural energy production and consumption of economic outputs. resources, which can be limited, and sometimes not sufficient to meet its energy demand. Fossil Traditionally, economic growth has been characterized fuels take years to be replenished and have adverse by an initially high rate of natural resource environmental impacts. Therefore, strong long- consumption per capita, followed by a period of term strategic planning is crucial, in which resource declining natural resource consumption past a certain efficiency and management are critical elements. Once rate of economic growth. However, with extreme the energy resource is tapped, the primary energy is population growth and the looming threat of global converted to secondary energy then to final energy climate change, the global community has recognized and finally to useful energy. Through this process, the need to shift the economic growth trend towards energy resources undergo conversion, transmission, more sustainable consumption and production – distribution and sometimes misuse, which leads to greater shared prosperity with less waste. To achieve loss of energy. This loss can be managed by Energy resource efficiency and natural resource decoupling, Conservation (changing the consumption pattern substantial shifts in technology, policies, and behaviors and behavior demand for useful energy) and EE are necessary. Reshaping traditional processes (reducing losses throughout the energy system value of natural resource consumption and realigning chain, i.e., losses linked to processing, production, incentives is critical. transportation and use of energy). While the idea of 18 IRENA. “Renewable Energy and Jobs Annual Review,” 2019. 19 IRENA. “Renewable Energy and Jobs Annual Review,” 2019. 20

20 IRENA. “Renewable Energy: A Gender Perspective,” 2019. 21 IRENA. “Renewable Energy: A Gender Perspective,” 2019. 22 McKinsey Global Institute. “The Power of Parity: How Advancing Womens’ Equality Can Add $12 Trillion to Global Growth,” 2015.

5 Green Growth National Action Plan 2021-2025 energy conservation is to reduce demand for energy straightforward and quick payback models through services, EE is achieved through reduction of the the reduced consumption. Therefore, establishing a amount of energy required to provide an equivalent market of energy efficient products and services can level of service. Energy conservation is regarded as the be an economic and employment creation opportunity priority and the low-hanging fruit in achieving resource under the right investment environment. At the efficiency in the energy sector, since such savings can macro-level, even small investments in EE can have be achieved in virtually no time and cost. a cumulatively large impact on national economic growth, job creation and GHG emissions reduction. New technologies may be required to achieve EE at the source of demand (for example, through Sustainable Development Goals: 7 (Affordable developing more energy efficient building materials and Clean Energy), 9 (Industry, Innovation and and approaches, appliances, smart management tools, Infrastructure), 12 (Sustainable Consumption and and more). Investing in these technologies come Production) with short-term cost implications, but often have 1.5 Climate Change Adaptation and Mitigation Jordan’s fifth national objective is to achieve climate industrial uses, and power for transport. Global energy change adaptation and mitigation, which is expressed consumption is by far the largest source of GHG as improving Jordan’s resilience to the effects of climate emissions generated by human activities, accounting change and decreasing the country’s total greenhouse for about two thirds of global emissions.23 gas (GHG) emissions. This objective is consistent with the Paris climate change targets, which is the global Despite global efforts to curtail GHG emissions community’s plan to respond to the global climate from the energy sector and massive investments in crisis. Actions taken to address climate change “clean” renewable sources, energy production and adaptation and mitigation can also be found in Jordan’s consumption continues to be the leading contributor National Determined Contribution (NDC) to the to climate change. Energy-related carbon dioxide Paris Agreement. (CO2) emissions have risen by 1% per year over the last 10 years.24 Many countries have already introduced Climate change-related weather events and natural policies, regulations, and infrastructure investment disasters threaten to destabilize traditional access to plans to combat climate change, which are outlined in natural resources, which also being a jeopardy to the each country’s Nationally Determined Contribution livelihoods of the most vulnerable members of society (NDC) to the Paris Climate Agreement. Most NDCs and entire economies. The world has recognized the include some level of ambition to transition towards impact of global climate change as a major global a lower-carbon energy system, by increasing the challenge requiring collective effort. The effects of adoption of RE and reducing fossil fuel consumption, in climate change are already evident in the form of addition to enhancing EE. rising sea levels, more extreme weather, flooding, droughts, and storms. Climate change is actually the Sustainable Development Goals: 7 (Affordable consequence of large amounts of GHG emissions into and Clean Energy), 11 (Sustainable Cities and the atmosphere, caused by human activities such as Communities), 13 (Climate Action) burning fossil fuels for electricity generation, heating, 23 The European Union. “Energy and Climate Change,” 2017. 24 IRENA. “Global Renewables Outlook: Energy transformation 2050”, 2020.

6 Energy Sector Assessing Green Growth in Jordan’s Energy Sector 2. Assessing Green Growth in Jordan’s Energy Sector 2.1 Energy Sector Green Growth Situation Analysis Natural Capital. Jordan is one of the most resource- decreased to 92% as of 2018. In recent years, Jordan’s scarce countries in the world, with few natural energy implementation of RE projects, such as solar PV and resources and a high dependence on imported wind, has diversified its energy mix, with renewable fossil-fuels for energy. Figure 4 shows the historical sources powering 10.7% of total electricity production consumption of natural resources by energy sector, in 2018. 25 The National Electric Power Company while Figure 5 illustrates the historical trend of (NEPCO) expects the total energy mix to be up to 30% energy importation, which has only marginally renewable by 2022 at the current rate of investment. Natural Gas Renewable Energy Oil Coal Total 12000 Energy Supply by source (kT.o.e) 10000 9000 6000 4000 2000 0 1995 2000 2005 2010 2015 2017 2018 Source: MEMR. FIGURE 4 Total primary energy supply by source, Jordan 1995-2018, 25 National Electric Power Company. “Annual Report 2018,” 2018.

7 Green Growth National Action Plan 2021-2025 98 97 96 Energy Imports (%) 95 94 93 92 91 90 89 2005 2006 2007 2006 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: MEMR. FIGURE 5 Historical net energy import The Government of Jordan (GoJ) has identified with potential producers by 2019 27.Strategic two natural resources which might be explored environmental impact assessments will determine and utilized in energy sector: oil shale and uranium. the extent to which oil shale exploitation projects will Geological evidence indicates that Jordan has impact the natural environment and what mitigation available an oil shale reserve of more than 30 billion efforts will be required. Regarding uranium, the tons, located under more than 60% of the country’s country also has natural mineral reserves that could land26. The majority of these reserves have been play a role in diminishing dependency on the energy reported to exist in the western part of the country, industry’s foreign market. The exact environmental situated close to the surface, where infrastructure impact of exploring these natural resources has not has been developed. The government has taken been fully assessed, but the government is currently some initiatives to explore the reserve in order to in discussions with several regional partners and enhance the domestic share of natural resources in investors to better understand the potential utility of the energy mix, signing four concession agreements these uranium reserves. Hydro Solar Wind (Onshore) Biomass/ Biogas 2015 Installed Capacity (MW) 2017 2020 2023 0 500 1000 1500 2000 2500 3000 3500 Source: MEMR. National Renewable Energy Action Plan 2018-2023 FIGURE 6 Renewable Energy Share in Jordan’s energy mix 26 MEMR. “Jordanian Oil Shale 2019,” 2019. (link). 27 MEMR. “Jordanian Oil Shale 2019,” 2019. (link).

8 Energy Sector Assessing Green Growth in Jordan’s Energy Sector Jordan is growing its RE resources with projects in In 2014, electricity prices for the end consumer ranged the solar, wind, geothermal, and biomass sub-sectors. from JD 0.033 per kWh for small residential consumers Figure 6 shows the RE share in Jordan’s energy mix. with a demand of less than 150 kWh per month, to JD Jordan is located in the “solar belt,” the geographic 0.292 per kWh for the banking sector. In 2012, the areas between latitudes 25 N and 25 S, which indicates generation and distribution costs were JD 0.146 per that sunny days could reach 316 days per annum kWh, whereas the average selling price was JD 0.0636 and for an average of 8 hours per day. In addition, per kWh. The difference in price had to be covered by numerous regions in Jordan are characterized by wind the state-owned NEPCO, thereby creating a substantial speeds ranging from 7-8.5 meters per second, which is deficit of JD 2.3 billion by the end of 2012. This deficit, a suitable speed for building wind energy plants. Due financed by structural loans from the World Bank, to these conditions, Jordan’s RE resources have grown, continues to create restriction on fiscal resources that providing a maximum contribution to the total energy could be used to create incentives that would stimulate mix of roughly 6% in 2017.28 Using these energy private sector-led economic growth. In order to reduce resources may significantly decrease the energy the losses, a National Strategic Plan with structural reliance on imported oil from the Arab oil neighboring benchmarks has been developed, which foresees the countries and improve Jordan’s energy security. adjustment of electricity tariffs and other measures to enhance the efficiency of the electricity system. Geothermal wells are distributed across the country Even if electricity continues to be subsidized for many and the utilization of these for heating and cooling can purposes, such as for consumers with low electricity reduce the cost of conventional energy. Regarding consumption, the government is still studying the best biomass resources, the conversion of agricultural way to balance subsidization and the need to service waste into biodiesel can also reduce diesel imports NEPCO’s debt, given its drag on public resources. and serve as a circular-economy solution to waste treatment. The conversion of animal waste into biogas The energy sector in Jordan has a solid roadmap, has the potential to offset imported liquified petroleum promising short-term and long-term strategies, as gas (LPG), although more investment in research well as comprehensive action plans; i.e. the National and development (R&D) is needed to bring this to Energy Efficiency Action Plan (NEEAP) and the National fruition. Jordan can also enhance its strength in the Renewable Energy Action Plan (NREAP). By connecting cross-border energy market by anchoring the role of a the existing action plans in the energy sector with the hub by linking different countries for transmission of green growth action plan, and by linking the ongoing natural energy resources. efforts to fostering RE and EE with the endeavors to reduce GHG emissions and comply with the conditions Sustainable Economic Growth. Green growth in of green economy, it will be easier to face and address the energy sector has a direct impact on Jordan’s the barriers and challenges in the sector, as well as get sustained economic growth because of the high financial incentives to more RE and EE projects. dependency on imported GHG-intensive fossil fuel sources (94% in 2017). Energy consumption in Jordan Most Southern and Eastern Mediterranean countries accounted for 26% of total imports and 17% of GDP (SEMCs), including Jordan, have experienced solid in 2017. That year, the financial cost of imported economic growth over the last couple of decades, with energy reached almost USD 3.5 billion. According to Jordan’s GDP rising from USD 4.16 billion in 1990 Jordan Vision 2025, Jordan’s economic growth is set to USD 43.74 billion in 201931. This growth enabled to reach a target of 7.5% in 2025. Under one detailed improvements in living standards, such as in health and vision to achieve this rate of growth, the electricity primary education services and reduction in illiteracy, and water sectors should combinedly grow by 128 as well as strengthening of income opportunities. million USD, representing 13% of that growth29. With this explosion of economic growth, electricity To achieve this level of growth, the government is consumption has also increased, which positively focusing on increasing investments in RE and EE contributed to the development of the economy. programs, attracting nearly USD 5 billion in investment As Jordan continues to increase its mix of renewable in the renewables sector to the country as of 201930. energy for electricity generation, it is also is increasing This expansion and diversification of resources its energy security. Taken together with exploration of needs further investment into the transmission grid indigenous sources, MEMR suggests that up to 48.5% and smart electricity usage, which are part of the of energy for electricity generation could come from forthcoming Master Energy Strategy. local sources by 2030, compared to the current 15%.32 28 MEMR. “Annual Report 2017,” 2017. 29 GoJ. “Jordan Economic Growth Plan 2018-2022,”2018. 30 The Arab Weekly. “Jordan making strides in renewable energy production,” 2020. 31 World Bank. “Country Data - Jordan,” 2020. 32 Reuters. “Jordan energy plan seeks major reduction in foreign fuel imports, minister says,” 2020.

9 Green Growth National Action Plan 2021-2025 Social Development and Poverty Reduction. Access development and in addressing poverty. Figure 9 to energy is at the heart of Social Development illustrates Jordan’s historical energy consumption per and Poverty Reduction, contributing to a decrease capita along with its GNI. Energy sector employment in poverty through the provision of clean water, can be one way to create social development and sanitation, and healthcare. One quantitative measure poverty reduction opportunities. A study conducted of life quality is the Human Development Index (HDI), by The King Abdullah Petroleum Studies and Research which is a composite statistic of life expectancy, Center (KAPSARC) estimates that 1% of the workforce literacy, education, and GDP per capita for different in Jordan, Egypt, and Morocco are in the RE sector, countries33. Jordan has an high HDI, ranked 102 while the International Energy Agency (IEA) estimates of 189 countries.34 Studies revealed that there is a that 40 million people will work in RE by 2050 globally35. correlation between energy consumption per person The IEA also projects job creation in these RE markets, and the HDI, implying that a small amount of change that are still in their growth stage. Of the total “clean in energy availability would dramatically shift the scale technology” jobs (in the RE and EE sectors) in Jordan of HDI. Figure 8 shows the existing strong interactions in 2016, 71% were in the electricity, gas, steam, and between energy consumption and social conditions. air conditioning supply sub-sector (excluding utilities), representing roughly 12,913 jobs.36 As investment in Gross National Income (GNI) is another key indicator the sector continues, new employment opportunities which designates a country’s progress in social are expected to thrive. The Electrical Energy Consumption by Sector Human Development Index (HDI) 20 0,75 Energy (x 1000 GWh) 15 0,70 10 0,65 5 0 0,60 2000 2011 2014 2015 2016 2017 1990 1995 2000 2005 2010 2015 2016 2017 2018 Household Industrial Commercial Water Pumping Street Lighting Source: UNDP Human Development Reports and MEMR. FIGURE 7 Historical electricity consumption and change in HDI 33 FES. “A Guide to Renewable Energy in Egypt and Jordan,” 2016. 34 IRENA. “Renewable Energy: A Gender Perspective,” 2019. 35 KAPSARC “Renewable Energy and Employment: The Experience of Egypt, Jordan and Morocco,” 2019. 36 EDAMA. “Jordan Clean Technology Sector Report,” 2016.

10 Energy Sector Assessing Green Growth in Jordan’s Energy Sector Gross national income (GNI) per capita (2011 PPP $) Energy use (kg of oil equivalent per capita) 11000 1600 10000 1400 9000 1200 1000 8000 800 7000 600 6000 400 5000 200 4000 0 1993 1997 2001 2003 2015 1990 1992 1994 1995 2005 1998 2000 2002 2004 2007 2009 1995 1999 2017 2006 2008 2010 2012 2011 1014 2016 2018 2013 Source: The World Bank and MEMR. FIGURE 8 GNI The historical energy consumption per capita of Jordan along with its Jordan is ranked 138 (of 153 countries) in the was primarily driven by illegal use42. Grid management World Economic Forum Gender Gap Report improvements, including capacity building at the 2020, having a particularly high gap in the areas utilities and the use of smart grid technology of ‘Economic Participation and Opportunity’ and can improve the system’s overall performance in ‘Political Empowerment’. Overall, women’s labor the future. force participation is low, with a 0.22 female to male ratio. Only 15.1% of women are working, and only Jordan has set a national target to achieve cumulative 15.4% of seats in parliament are held by women.37 electricity savings of 20% by 2020 through the Women in Jordan are excelling in Science, Technology, implementation of energy efficiency measures.43 Engineering and Math (STEM) education; however, Major sectors include residential, tertiary, industrial, they do not end up in STEM Related careers.38 water pumping, street lighting, and transport. The 2nd For example, of the clean technology jobs in 2016 National Energy Efficiency Action Plan 2017-2020 referenced above, only 18% are held by women39. (NEEAP) proposes 35 measures covering all energy- Removing the barriers to women’s entry and career consuming sectors. The implementation of the NEEAP development in the sector could create an opportunity will allow an accumulated final energy savings of about to close the gender gap in the labor force and, most 1,570 ktoe between 2016 and 2020 and 13,500 ktoe importantly, also leverage the talent of STEM educated to 2030. Electricity savings are expected to be around women in Jordan. 9,120 GWh up to 2020, and 40,960 GWh up to 2030, having final energy savings of around 18,400 ktoe Resource Efficiency. In Jordan, electricity consumption between 2016 and 2030. per capita increased from 1,712 KWh in 2016 to 1,741 KWh in 2017. Meanwhile, the share of primary energy Cumulatively, the total investment cost of the new per capita was 981 kg oil equivalent in 2016, compared NEEAP is estimated to be around 696 million JD and will with 991 in 201740. Jordan’s overall energy intensity, generate annual savings for the user of about 230 million indicating the amount of energy consumed per unit JD per year by 2020. In this case the average payback of GDP, has decreased in the last two decades, and period of the NEEAP from the point of view of the users the country is considered to have an average energy will be around 2.5 years, representing a good profitability. intensity, when compared to its peers in the Upper The average cost of the saved kWh can be estimated Middle Income group.41 In terms of electricity losses to be around 0.088 JD/kWh (0.126 $/kWh), keeping in within the energy system infrastructure, in 2017 the mind that many measures, especially for the water sector, rate was 13.10%, compared to 14.89% in 2015, which include additional upgrades not related to EE. 37 World Economic Forum. “Global Gender Gap Report 2020: Insight Report,” 2019. 38 USAID. “Women in Energy in Jordan. Challenges, Opportunities and the Way Forward,” 2015. 39 EDAMA. “Jordan Clean Technology Sector Report,” 2016. (link). 40 NEPCO. “Annual Report 2017,” 2017. 41 GGGI. Green Growth Index 2019. 42 NEPCO. “Annual Report 2015,” 2015. 43 MEMR. “The Second National Energy Efficiency Action Plan for Jordan 2018-2020,” 2018.

11 Green Growth National Action Plan 2021-2025 Climate Change Adaptation and Mitigation. The energy gas supplied approximately 90% of the energy demand, sector plays a major role in climate change adaptation, while 10% was supplied by other sources44. Therefore, especially since energy is the primary contributor to both fuel sources had major impact in CO2 emissions the total emissions causing climate change effects. in 2017, and, as expected, oil contributed about 65% Jordan’s energy mix is dominated by imported fossil of total emissions while natural gas had a share of 31%. fuel, in particular, natural gas and oil. In 2017, natural Figure 10 shows 2017’s emissions by sector in MT CO2. 12 10 8 6 4 2 0 Electricity Other energy Industry Transport Residential Not Specified and heat industries Source: IEA45. FIGURE 9 GHG Emission by sector (MT CO2) in 2017 Oil consumption is the largest contributor to within the green growth plans. Electricity generation GHG emissions, demonstrating the importance of and transportation are the leading subsectors in transitioning towards cleaner energy production and generating more emissions, reaching a share of 39% consumption. According to the IEA database, emission and 43%, respectively, of the energy sector’s total mix for Jordan is led by electricity and heat producers emissions46. The future of RE in Jordan is bright and it along with the transportation sector, followed by is possible to achieve more than the targets mentioned residential sectors. Therefore, those sectors need earlier; and that is because Jordan enjoys top-quality a special attention while planning for mitigation solar and wind energy, in which solar radiation is so measures for combating climate change. In parallel high it can reach 5–7 kWh/m2 per day with more to the adoption of RE, the country should adopt a than 300 sunny days per year, and wind speeds long-term policy and action plan to enhance the share that reach 9 m/s in some places in Jordan. These of cleaner fossil fuel, i.e. natural gas. Though natural and other factors resulted in the outstanding score gas is a fossil fuel, the global warming emissions from in Climatescope 201747 (the clean energy country its combustion are much lower than those from coal competitive index), in which Jordan was ranked third or oil. Jordan also needs to investigate the emissions globally, just behind Brazil and China, climbing eight contribution by different sectors, since this would help places from Climatescope 201648. The reduction in addressing climate change by focusing on emission in GHG emissions will improve the quality of local intensive sectors. air, water, and soil which contribute directly to the biodiversity and ecosystems services. Another added In Jordan, energy contributed 73% of total emissions value of green growth in the energy sector is the in 2006, with an estimated GHG of 21,000 Gg reassurance that the energy strategy and action plans CO2eq. This contribution is expected to increase are compatible with Jordan’s efforts towards green to 83% by the year 2040. Therefore, it is crucial to growth, which will reinforce and support the direction focus on mitigation efforts on the energy sector that Jordan is taking in the energy sector. 44 The Jordan Times. “Almost 90% of generated electricity comes from natural gas — NEPCO,” 2018. 45 IEA. “Data and statistics,” 2017. 46 MoEnv. “Jordan’s Third National Communication on Climate Change,” 2014. 47 Bloomberg Finance. “Climatescope 2017,” 2017. 48 Bloomberg Finance. “Climatescope 2016,” 2016.

12 Energy Sector Assessing Green Growth in Jordan’s Energy Sector RE is a fundamental element of achieving Jordan’s According to Jordan’s latest approved energy strategy GHG emissions targets. In 2017, the total RE installed (2007-2020), RE targets were set to reach 11% capacity was 627 MW, compared to 3800 MW of of Jordan’s energy mix by 2020, with an updated conventional electricity generation (fundamentally target set to reach 21% of generated electricity from based on diesel and natural gas), meaning RE’s renewable resources by 2025. contribution to electricity generation is of 6%. 2.2 Current Energy Sector Strategic Priorities Jordan Vision 2025. This document is the country’s Energy Strategies. GoJ has dedicated itself to a primary economic and social development strategy, sustainable and vibrant energy policy path by means addressing the economic, social and governance of encouraging EE and developing RE systems. The challenges affecting Jordan’s ability to transform into a GoJ has updated its published Energy Strategy (2007- more developed economy. Energy security, as a tool to 2020) and set up the Master Strategy for Energy achieve economic sustainability, is at the center of the Sector 2015-2025 with the ambitious targets for RE. Jordan Vision 2025’s energy approach. For this reason, The Master Strategy has three main objectives: there are several intended outcomes from the energy scenario. Key objectives of the targeted scenario by 1. Identify reliable sources of energy at the lowest 2025 include: possible cost; 2. Increase the utilization of indigenous resources ƒ Improving the performance of petroleum products’ and renewables to increase supply security; sector and opening the market to competition; 3. Improve EE in order to reduce oil imports, ƒ Diversifying sources of natural gas imports; reduce the need for investment in production ƒ Enhancing the safety of the electrical system while facilities, and diminish environmental impact raising the availability and reliability of the system; (including GHG emissions). ƒ Encouraging investment in RE; ƒ Increasing the carrying capacity of the GoJ is implementing a National Renewable Energy electrical grid; Action Plan (NREAP)49 for the period 2018-2023. The ƒ Encouraging the use of solar energy for official target adopted in the NREAP is for renewable water heating; resources to reach more than 37.14% of the total ƒ Requiring the implementation of green installed electricity capacity by the year 2023. This, building codes; translated into electrical capacity, means between ƒ Encouraging the use of devices that are compatible reaching 2.2 GW and 3.2 GW, reflecting the potential with “Green” standards; development pathways of both large-scale and ƒ Raising awareness about the long-term financial decentralized projects against their 2018 baseline, in benefits of EE; which there are more than 1 GW of installed capacity ƒ Intensifying oil drilling and exploration; from renewable sources of energy, namely 7 GW solar ƒ Increasing the exploitation of oil shale; PV, 3 GW wind, 12 MW hydro, and 3.5 MW biogas. ƒ Developing the skills and techniques necessary to support the growth of the energy sector; ƒ Attracting private sector investment to the energy sector. 49 MEMR. “National Renewable Energy Action Plan 2018-2023,” n,d. 50 MEMR. “The First National Energy Efficiency Action Plan for Jordan 2012-2014,”2013. 51 MEMR. “The Second National Energy Efficiency Action Plan for Jordan 2018-2020,” 2018.

13 Green Growth National Action Plan 2021-2025 In 2011, the GoJ issued the First National Energy 2017‑202051, with the goal of saving almost 2000 Efficiency Action Plan (NEEAP)50 for 2012-2014. The GWh in electricity by 2020. The second NEEAP baseline that was adopted was the average electricity includes 35 measures (26 measures + 9 cross-cutting consumption between 2006 and 2010, which is equal projects) covering the residential, tertiary, industrial, to 11,291 GWh per year. The first Jordan NEEAP water pumping, street lighting, and transport sectors. included 11 main measures, targeted to achieve a 7.6% reduction in energy consumption by the year 2014, Jordan’s existing national plans, strategies, and policy equaling about 806 GWh. The rate of completion for documents add a further level of specificity to its the first NEEAP was estimated to be 40%. Therefore, priorities, many of which are linked to green growth the GoJ issued the Second NEEAP for the years (see Table 2 below). TABLE 2 Green Growth Priorities found in Existing National Documents Relevant plans and strategies for Green Growth Objectives Energy Sector Social Climate Sustainable Development Change Enhanced Economic Resource Natural & Poverty Adaptation & Capital Growth Reduction Efficiency Mitigation Jordan Vision 2025 x x x Jordan Economic Growth Plan 2018 - 2022 x x x Energy Master Strategy 2015-2025 x x x x x National Renewable Energy Action Plan x x (NREAP) 2018-2023 (tbc) National Energy Efficiency Action Plan x x (NEEAP) 2017-2020 National Strategy and Action Plan for Sustainable Consumption and Production in x x Jordan (2016-2025) Jordan Sustainable Energy & Climate Action Plans (SECAPs) (one each for Irbid x x Municipality, Karak Municipality, and the Aqaba Special Economic Zone Authority) Nationally Determined Contribution (NDC, x Paris COP21) The National Climate Change Policy of the x Hashemite Kingdom of Jordan 2013-2020

14 Energy Sector Assessing Green Growth in Jordan’s Energy Sector 2.3 Energy Sector Stakeholders MEMR is the leading government institution ƒ Jordan Engineers Association (JEA) responsible for strategic planning and for guiding the ƒ Jordan Green Building Council (JGBC) development of Jordan’s energy sector. The mandate ƒ Jordan Renewable Energy and Energy Efficiency of this ministry is to set the appropriate policies and Fund (JREEEF) legislation to achieve a secure and sustainable supply ƒ Jordan Standards and Metrology Organization of energy, as well as ensure an optimum utilization of (JSMO) energy and mineral resources in line with international ƒ Ministry of Environment (MoEnv) best practices. MEMR works in close partnership with ƒ Ministry of Industry, Trade and Supply (MITS) the Energy and Minerals Regulatory Commission ƒ Ministry of Local Administration (MOLA) (EMRC) to ensure alignment of incentives, ƒ Ministry of Public Works and Housing (MPWH) enforcement of laws and policies related to energy ƒ Ministry of Transport (MoT) production and consumption in Jordan. It also works ƒ Ministry of Water and Irrigation (MWI) closely with energy producers, distributors, and other ƒ National Electric Power Company (NEPCO) key institutions to ensure access to energy for all in ƒ National Energy Research Center (NERC) Jordan. Other key partners who support the energy sector include: Key Sector Donors and Development Partners: Key stakeholders: ƒ Bank aus Verantwortung (KfW) ƒ European Bank for Reconstruction and ƒ EDAMA (local Non-Governmental Organization Development (EBRD) (NGO) and business association) ƒ European Investment Bank (EIB) ƒ Electricity Distribution Company (EDCO) ƒ European Union (EU) ƒ Energy and Minerals Regulatory Commission ƒ International Finance Cooperation (IFC) (EMRC) ƒ Jordan Green Building Council ƒ Irbid District Electricity Company (IDECO) ƒ United Nations Development Programme (UNDP) ƒ Jordan Chamber of Commerce (JCC) ƒ United States Agency for International ƒ Jordan Chamber of Industry (JCI) Development (USAID) ƒ Jordan Electric Power Company (JEPCO) ƒ World Bank (WB)

15 Green Growth National Action Plan 2021-2025 3. Energy Sector Sub‑Objectives and Action Selection 3.1 Energy Sector Green Growth Sub-Objectives Jordan’s green growth transformation is largely Close coordination and collaborations with MEMR dependent on the country’s ability to successfully and MoEnv ensured alignment with sector priorities service its energy sector debt, and leverage clean as laid out in the NREAP, NEEAP, and the forthcoming RE investments into growth and employment sector strategy, as well as in other major national opportunities. This vision is well-documented in plans. Special emphasis was also given to establishing various national plans and strategies, including the linkages with the country’s cross-cutting environment Jordan Vision 2025, the Jordan Economic Growth and socio-economic strategies and plans. Where Plan 2018-2022, and the forthcoming Energy Sector specific green growth concepts were not prominently Master Strategy. mainstreamed into policies and strategies, global green growth best practices were incorporated into the Further operationalizing the five national green objective and action levels. growth objectives described in Chapter 1 and assessed in Chapter 2, energy sector sub-objectives The five national green growth objectives are for each national objective were determined. These translated into 16 sector sub-objectives for Jordan’s sub-objectives serve as a green growth agenda for energy sector, as detailed in Table 3. the energy sector agenda, which can be continually developed by national stakeholders.

16 Energy Sector Energy Sector Sub-Objectives and Action Selection TABLE 3 Energy Sector Green Growth Sub-Objectives National Green Energy Sector Green Growth Objective Growth Sub-Objectives a. Limit air pollution from fossil fuel use; Enhanced Natural b. Reduce impact on natural resources from energy and minerals exploration and Capital production, including water. a. Reduce the country’s reliance on fossil fuel imports; Sustainable b. Increase the affordability of energy for industrial and commercial consumers; Economic Growth c. Support the reduction of energy sector-based public debt; d. Increase competition and strengthen regulation of the electricity market; e. Enhance innovation and technical capacities in the energy sector. Social a. Improve the affordability of clean energy for low-income communities; Development and b. Maintain access to reliable, affordable and sustainable energy for all; Poverty Reduction c. Increase opportunity for employment in the energy sector, especially for women and youth; d. Enable refugees and host communities to access adequate, affordable and secure energy supply. a. Increase use of waste to energy approaches to produce energy (biofuels and Resource electricity generation); Efficiency b. Reduce energy network losses and improve energy management in utilities; c. Increase the efficiency of energy use (including electricity and fuels). Climate Change a. Decrease total consumption of energy from fossil fuel resources; Adaptation and b. Decrease total GHG emissions from energy sector activities. Mitigation Climate Action Priority. Climate action – policies and investments which lead to climate change adaptation and mitigation – are key priorities for the Government of Jordan. Actions which are noted to contribute to the strategic objective of “Climate Change Adaptation and Mitigation” represent sectoral priorities that can also be found in the NDC Action Plan and/ or the National Adaptation Plan52. These documents, along with the GG-NAP, guide the MoEnv in planning and implementing its international climate change commitments, for which it aims to achieve 14% overall Jordan’s Nationally Determined Contribution GHG emissions reductions by 2030, including 1.5% unconditional reduction 14% GHG emissions against the baseline, with a 12.5% additional reduction target being conditional upon receiving financial and technical support from international donors and reduction by 2030 development partners. 1.5% unconditional 12.5% conditional 52 These priorities have been developed for MoEnv with the support of NDC Partnership and GIZ programs in Jordan.

17 Green Growth National Action Plan 2021-2025 3.2 Translating Green Growth Priorities into Actions Taking into account the priorities of stakeholders, the ƒ Enabling Actions. These are considered to be any gap analysis performed, and the strategic planning actions that will enable stakeholders (government exercises conducted, the MoEnv, MEMR and the and/or others) to be more prepared for future green Global Green Growth Institute (GGGI) identified and growth policy or investment implementation. They validated a prioritized list of investments and enabling are policy, strategy, research, and capacity building- actions. Ideas were solicited through an open call oriented in nature. They can be implemented through for ideas with key government and non-government a mixture of donor and government support. Donors stakeholders. Action proposals were received and would typically support implementation on a grant reviewed using a multi-level screening tool from basis through technical assistance funds. Each action which priority interventions (policies, programs, description contains the detailed rationale and and investments) were selected and presented at a strategic orientation which will allow Action Leads to national preliminary validation workshop in December develop funding proposals for these actions as priority 2018. The findings of this workshop revealed the green growth programs. preference by stakeholders to prioritize those with: ƒ Investment Actions. These are priority investment ƒ Strong links to national green growth objectives; projects that support the achievement of national ƒ High levels of innovation or novelty in concept; green growth objectives. Investments must be ƒ Likelihood to attract private sector investment or proven feasible from a technical, financial, and develop the private market. environmental standpoint. As such, they require proof of concept, a business model showing that an Bilateral and small-group consultations were attractive return on investment (ROI) is possible. conducted through 2019 to prioritize and formulate the actions proposed by sector stakeholders. This For enabling actions that do not lead to an investment, process included the assessment of feasibility, risks the estimated budget and status of financing are noted and alignment with government priorities as per the in the action description in Chapter 5 of the action feedback received in 2018, which improved the depth plan. In these cases, the “No” box is checked under of analysis, input from private sector actors and local the “Action Leads to Investment” section of the action technical experts. The zero draft of the action plan description. It is important to note that some technical was reviewed by an ad-hoc Energy Sector Green assistance actions may lead to investment. However, Growth Review Committee, hosted by the MEMR. for the purposes of this action plan, all actions that do Endorsement was received by sector leadership in the not include feasibility analysis for a specific project or MEMR, and approval was received by the Cabinet of investment are assumed to not lead to an investment. Ministers in early 2020. For the purpose of this action plan, actions are presented in three ways: as enabling actions, as an investment, and as a combination of the two. Estimated Budget for this Action Financing Secured Yes No Potential Source of Funding Action Leads to Investment Yes No This action is an Investment opportunity Estimated Investment Size

18 Energy Sector Energy Sector Sub-Objectives and Action Selection For many green growth investments, limited feasibility and are considered ready for investment, the box “This analysis is available. In these cases, the action includes action is an investment opportunity” is checked. In both the development of the required analysis (feasibility cases an estimated budget for the implementation of studies, technical assistance, etc.) directly related to the project/investment is given, based on the available a potential or known investment opportunity. The information (such as a feasibility study, consultation “Estimated Budget for this Action” is noted in the with project designers, or best estimation). Table action description, and the “Yes” box is checked in the 4 shows the types of actions found in the GG-NAP “Action Leads to Investment.” In the case of investment 2021-2025. opportunities that have feasibility analysis completed TABLE 4 Types of actions found in the GG-NAP 2021-2025 Action Type Description of Activities to be Implemented Any action that will enable stakeholders (government and/or others) to be more prepared Enabling Action for future green growth policy or investment implementation. Activities, outputs, and milestones might include: ƒ Policy analysis, recommendations, and reform ƒ Capacity building programs, public campaigns that increase awareness among a set of key stakeholders ƒ Knowledge exchange and learning ƒ Reforms to processes, procedures, and institutional setup ƒ Technical studies and analysis Investments Any action that will lead to investment in a specific project that will support the achievement of one or more of the sector green growth sub-objectives. For demonstration or pilot projects, activities, outputs, and milestones might include: ƒ Investment analysis and preparation activities ƒ Clarify the proof of concept (technical and financial aspects) of implementation of green growth projects ƒ Reform of specific policies or regulations required to attract investment ƒ Develop service models and business plans ƒ Inform replication or scale up Investment-ready projects are considered ready for implementation between 2021 and 2025 based on available feasibility analysis. Action Priority Level. Actions that were considered below. Sector review committees and green growth low priority for green growth were not included in focal points at the relevant line ministries were asked the action plan, and action descriptions were not to evaluate and validate the level of priority, and developed. From the numerous ideas received, a this is noted in each action form. Table 5 shows the limited number of detailed action descriptions were prioritization criteria for GG-NAP 2021-2025. prepared and assessed according to the criteria

19 Green Growth National Action Plan 2021-2025 TABLE 5 Prioritization criteria for GG-NAP 2021-2025 Priority Level Description Low Low-priority actions are those which do not meet the adjusted criteria after the Preliminary Validation Workshop, meaning they: ƒ Lack clear and substantial links to national green growth objectives ƒ Lack innovation and do not demonstrate added value to existing sector objectives, as outlined in national/sectoral policy documents ƒ Cannot be reasonably implemented given the available resources or capacity at the sector level in the 2021-2025 period Low-priority actions have not been included in this action plan. Medium Action which: ƒ Positively contributes to at least one of the national green growth objectives and sector sub-objectives ƒ Adds value to existing sector objectives (as outlined in national/sectoral policy documents) High Action which meets all the “Medium” criteria, plus: ƒ Encourages changes to the prevailing ‘business as usual’, triggering long-term, sustainable green growth transformation ƒ Impacts a large geographical area or segment of the population Very High Action which meets all the “High” criteria, plus: ƒ Considered a key milestone for future implementation of green growth actions, i.e., enabling actions that lead to improved and quantifiable green growth policies and investments ƒ Has strong private sector orientation, interest and/or ownership ƒ Resources have been identified for implementation (public, private, donor)

20 Energy Sector Implementation Arrangements 4. Implementation Arrangements 4.1 Action Implementation Green Growth Implementation Principles. Successful stakeholders, which has been called out as both a key implementation of this plan will require sector-level challenge and opportunity in the NGGP. MEMR is policy and institutional reform measures. The goal of the leading institution responsible for overseeing the these measures is to achieve: implementation of all policies and strategies for the energy sector, but many of the actions in this action ƒ Greater strategic alignment and coherence plan require joint preparation and implementation among existing plans and strategies; across institutions, stakeholders, and sectors. The ƒ Improved coordination between government private sector, civil society actors, and government institutions and stakeholders; agencies – such as the GAM, MPWH, municipal ƒ More meaningful and frequent engagement authorities, and many more – are included as of private sector, NGOs and other non- action implementation leads and support. Donors, government actors; development agencies, and local NGOs are needed ƒ Stronger investment and strategic planning to provide financial support, technical expertise, and systems and processes, leading to stronger knowledge of local needs and context. return on investments made in national development and economic growth; Table 6 shows the roles and responsibilities of various ƒ Technical capacity development within stakeholders for green growth implementation government institutions. in Jordan. Roles and Responsibilities. Green growth is a unique development approach that will require a high level of collaboration between national

21 Green Growth National Action Plan 2021-2025 TABLE 6 Roles and Responsibilities of Various Stakeholders for Green Growth Implementation in Jordan Stakeholder Roles and Responsibilities Action Lead ƒ Ensuring the action is successfully implemented within the planned time frame. This may include additional preparatory actions such as further consultations, resource mobilization (identifying potential donors, writing funding proposals, preparing project documents), coordinating stakeholders, and facilitating implementation (disbursing funding, etc.). ƒ Provide progress status reports as needed to the relevant focal ministry for monitoring and evaluation (M&E) purposes. ƒ For investments, the Action Lead is the project owner. Action Support ƒ Support the Action Lead by providing technical feedback, in-kind or financial support, drafting and ideation support, and other collaborations during all phases of action planning and implementation. Sector Green Action Implementation Growth Focal ƒ Serve as focal point for communications and reporting on sector action plan Points at the MEMR implementation progress ƒ Support action implementation by supporting Action Leads with resource mobilization, coordination, data collection, etc. ƒ Ensure the policy/regulatory environment supports action implementation (with donor support if required). Mainstreaming ƒ Support mainstreaming activities and approaches that support green growth implementation into sector-level policies and investments. ƒ Serve as technical advisor to line ministry leadership on an ad-hoc basis (especially Secretary General sitting on the Higher Steering Committee for Green Growth). ƒ Facilitate partnerships with private sector and civil society institutions to support green growth planning and implementation. Monitoring/Reporting ƒ Provide quarterly status updates on the implementation of the action plan to MoEnv, Green Economy Unit (noting any challenges and requesting any needed support). Ministry of Green Economy Unit Environment ƒ Work closely with Action Leads to provide policy analysis (undertaking policy review, (MoEnv) cost-benefit analysis, supporting pre-feasibility analysis, conducting consultations to change policies or regulation) as needed to support implementation. ƒ Guide Jordan’s green growth planning and implementation activities and facilitating collaboration amongst all stakeholders. ƒ Support line ministries with cross-sector coordination to support project design and implementation. Technical Units ƒ Multiple directorates working on cross-cutting green growth agendas (climate change, biodiversity and natural resources, and waste regulation) support line ministries with cross-sector coordination to support project design and implementation. Policies Unit ƒ Support with resource mobilization and partnerships. Higher Steering Committee for Green Economy (composed of Secretaries-General of each of the key line ministries) ƒ Responsible for reviewing and approving a results report on a bi-annual basis, and for submitting this to the Prime Ministry. Green Growth Technical Committee (composed of technical level focal points) ƒ Responsible for supporting action plan preparation and for reviewing and addressing implementation gaps and challenges on an ad hoc basis.

22 Energy Sector Implementation Arrangements Stakeholder Roles and Responsibilities Ministry of Evaluation and Institutional Development Unit Planning and ƒ Reporting against the Jordan Vision 2025 and annual Executive Development Programs, International economic growth and investment planning, and sustainable development planning. Cooperation ƒ Ensure mainstreaming of green growth into the next national development plan (post- 2025) and other cross-cutting national plans (Jordan Response Plan, Jordan Economic (MOPIC) Growth Plan, etc.). Directorate for International Cooperation ƒ Coordinate with donors to link national priorities (projects and programs) with development assistance (grants, loans, public-private partnerships, etc.). Department of Statistics (DOS) ƒ Collect data to report against KPIs. Higher National Committee for Sustainable Development ƒ Provide guidance and follows up on all decisions, priorities and recommendations related to the 2030 Agenda. Prime Ministry Public-Private Partnerships Unit ƒ Determine which actions (or which components) are suitable and priority for developing public-private partnerships. Special emphasis is given to those investments that require strong government oversight, or where ability to generate revenues is weak in the initial payback period. ƒ Review and approve of implementation progress reports. Progress Unit ƒ Review and approve of progress reports against the Executive Development Plan and other national and sector-level plans, strategies, and projects. Ministry of Finance ƒ Determine what level of contribution the government can make to action implementation (MoF) at the sector level. Jordan Investment ƒ Coordinate with the line ministries to develop relevant actions into investment proposals Commission and promote the projects to potential foreign investors. ƒ Facilitate foreign direct investment to achieve green growth implementation. NGOs ƒ Support future action formulation by providing local context and technical expertise as needed. ƒ May be responsible for implementing actions in coordination with government or private sector. Private sector Private sector associations ƒ Support the development of market assessments/analysis to formulate better business models or revenue models for investment actions. ƒ Participate in regular public-private dialogue to identify gaps in regulatory environment or other barriers to investment and suggest solutions. Investors ƒ Provide feedback on project proposals and potentially invest in actions by providing grants, loans, or equity finance.

23 Green Growth National Action Plan 2021-2025 Coordination. Weak coordination between through PPP. These will require cost-benefit-analysis stakeholders is a green growth implementation barrier and investment planning in advance of implementation. affecting all sectors and threatening the sustainability Project implementers will work directly with MoF to of green growth interventions. This fact has been well- ensure that the necessary investment conditions can documented in the Jordan Vision 2025, the Jordan be reached. Economic Growth Plan 2018-2022, the National Green Growth Plan, and through the consultation Capacity building and Institutional Development. process for the development of this plan. To encourage The mainstreaming of green growth planning and greater future coordination and collaboration implementation at the sector level will require between sectors and institutions (public and private) continuous learning through capacity building and all stakeholders must commit to developing a culture institutional development. The green growth analysis, of knowledge exchange, innovation, sharing and objectives, implementation actions and results collaboration. The government can play a leading role framework can be strategically mainstreamed at on the establishment of this culture through: the sector level during sectoral planning exercises. Continuous development of the concept and its ƒ Consolidating governance bodies where overlap ramifications on sectoral development is needed for exists, removing duplicate committees or technical- and management-level government staff. governance units for the same issues; MoEnv will aim to play an increasing role in supporting ƒ Upholding the highest standards of transparency capacity building and institutional development with and knowledge exchange, committing to sharing its partner ministries in the area of green growth and information as needed and following standard climate change. procedure for policy and project development; ƒ Hosting regular, inclusive sector-level donor and Monitoring and Evaluation. Several donor-funded development partner consultations, and more actions are included in the action plan, each with frequent public-private-civil society dialogues on specific logic models and corresponding performance key policies and investments; indicators as part of standard donor requirements. ƒ Conducting more public outreach and awareness These will refer to and align with the overall results of government successes and lessons learned. framework for the GG-NAP. Whenever possible, common indicators will be used to increase alignment Financing Implementation. An estimated budget and reporting schedules will be synchronized with for implementation of each action is included in the GoJ’s fiscal year. Ongoing monitoring of the each action description in Chapter 5. This estimate performance of individual sector actions will be the is considered a starting point for detailed action responsibility of the line ministry for the sector, as planning. In some cases, implementation can be below, in coordination with the identified action achieved at a lower cost, while others can be “owner”. Sector leads and the appropriate Action Leads bundled with other programs/initiatives. The specific will communicate any issues uncovered as part of their components of these programs and projects will ongoing performance monitoring with MoEnv’s Green likely differ during implementation. Line ministries Economy Unit. implementing sectoral action plans are responsible for identifying the financial resources required for Implementation Tracking. Implementation will be green growth action implementation, including using tracked jointly by the Green Economy Unit at the public budget where available and with sector donors. MoEnv, the relevant monitoring focal point at the As implementation facilitators, MoEnv and MOPIC sector ministerial level, and the Evaluation and will support identification of off-budget resources Institutional Development Unit at MOPIC. Key roles for implementation to support SDG achievement and and responsibilities of all stakeholders responsible for NDC implementation. pushing implementation are outlined below. Efforts will be taken within the first year to ensure sector- Official development assistance and climate finance level commitment to implementation. MOPIC and are two sources of international finance that can MoEnv will work with action leads to ensure sufficient be applied to green growth implementation. While access to financial and technical assistance for technical assistance programs and demonstration/ implementation. pilot projects may be easily financed by donors on a grant basis, investment in projects is a more Communications. MoEnv will work to ensure effective resource intensive process. Infrastructure projects communication across government institutions about typically require substantial up-front costs, which the status of implementation of the GG-NAP. Projects tend to be financed with debt under long payback that contribute to green growth will be entered into periods. Consequently, most of these investments the Green Growth Tracking System developed by will be owned either by the government or large MoEnv,, and the Ministry commits to ensuring regular institutional investors or a mixture of ownership updates on implementation.

24 Energy Sector Implementation Arrangements 4.2 Future Planning and the next phase (post-2025) Sectoral Planning. Sector decision makers at the preparations for this shall begin in the fourth quarter relevant line ministry and the MoEnv will seek to of 2024, with ample time for consultation and review continuously support green growth mainstreaming of lessons learned in Phase I. The implementation at the sector level. This means using the objectives period for Phase II is expected to be 2026-2030, and, outlined in the action plan to guide implementation of as such, will be closely aligned with the Sustainable sectoral policies and investments. Further, MoEnv will Development (2030) Agenda and the NDC. Green work with MOPIC to continuously seek to find and growth action planning for Phase II can also be aligned feature green growth actions under implementation with the next long-term national development plan in Jordan. Many existing or future actions that do not developed by MOPIC, the follow-up to the Jordan appear in the GG-NAP can still be considered green Vision 2025. For this process, MoEnv and MOPIC will growth actions, and their impacts will be accounted for work together to undertake consultations at the sector in green growth reporting. Lessons learned from these level, provide capacity building and strategic visioning projects and programs will be compiled and reflected workshops, and support green growth action ideation into the design of future projects and programs. and formulation. Advance consultation with donors to the extent possible, and identification of public budget Phase II Green Growth Action Planning. Action for green growth implementation, is needed. planning in the next phase will be less complex, given the experience of developing this first action plan. The

25 Green Growth National Action Plan 2021-2025 5. Energy Sector Green Growth Actions 2021-2025 The following 12 priority actions have been identified ƒ Supporting Jordan’s objectives to achieve a for implementation in the 2021-2025 period. These cleaner energy mix through RE and a reduction in interventions are estimated to cost USD 85,300,000, national GHG emissions of 14%53. and include: ƒ Promoting the revitalization of the energy services market and the pursuit of energy sector ƒ 4 investment preparation and demonstration innovation as a driver of future economic growth actions. These projects are at various levels of and employment. readiness: some require feasibility analysis, while ƒ Increasing the readiness of key national others are investment-ready. Many are suitable institutions to attract climate finance. candidates for PPP or direct private sector ƒ Emphasizing the importance of achieving EE investment, and others are opportunities to leverage through green building and construction, electric climate finance. transport, and appliances. ƒ 8 enabling policy and institutional reform actions. Table 7 shows the energy sector green growth Given current gaps in available fiscal resources, actions and can be used by action owners to begin these actions intend to attract investment by project proposal formulation for the purpose of addressing policy barriers and capacity gaps that mobilizing public budget or external grants, loans lead to higher costs, risk levels or uncertainty in or other financial support for implementation. It is decision making. These include programs to support understood that detailed implementation approach, innovation, institutional reform and coordination. outputs, timeline, budget, and stakeholders may change depending on the source of finance during the process of implementation. Implementation of these actions will contribute to the Energy Sector Green Growth Sub-Objective as well as in: 53 1.5% unconditional, 12.5% conditional reductions according to the NDC.

26 Energy Sector Energy Sector Green Growth Actions 2021-2025 TABLE 7 Energy Sector Green Growth Actions 2021-2025 Relevant Green Growth Objectives Total Estimated Social Development Resource Efficiency Enhanced Natural Sustainable Climate change Implementation Cost and Poverty Action Title Mitigation and Page # (USD) Capital Economic Growth Reduction Adaptation EN05 EN04 EN03 EN02 EN01 # improve Energy Demand Management through 27 3,500,000 Development of a Smart Electricity Grid x x x Develop Industrial Renewable Energy Roadmap 29 1,000,000 and Investment Plan x x Improve the market for green building and 31 1,000,000 cosnstruction services x x x x Develop and implement a National Green 33 3,000,000 Strategy and Action Plan x x x Conduct Energy Retrofits for Public Buildings 35 1,500,000 x x x Implement Electric Vehicle Charging Stations 37 16,300,000 EN06 and Service Provision in Greater Amman x x x Municipality through a pUBLIC-private Partnership Develop a Behavior Change Campaign and 39 9,000,000 EN07 Financial Mechanism to Increase Use of Energy x x x Efficient Appliances in Jordan Develop and implement a National Energy 41 10,000,000 EN09 EN08 Storage Action Plan and Investment Pipeline x x x Increase a Public Investment Energey Sector 43 15,000,000 Research and Development x x Achieve GCF Accreditation for the Jordan 45 1,000,000 EN10 Renewable Energy and Energy Efficiency Fund x x x x (JREEEF) Improve the Enabling Environment and Capacity 47 1,000,000 EN11 Development Support for the Growth of the x x x x Energy Services (ESCO) Market Implement the Energy Sector Monitoring, 49 3,000,000 EN12 Reporting and Verafication (MRV) System x x

27 Green Growth National Action Plan 2021-2025 EN01 Improve Energy Demand Management through Development of a Smart Electricity Grid Description Implementation of RE projects of 1MW or higher has been temporarily halted until the financial situation of the National Electric Power Company has improved, and until the physical electricity grid is ready to absorb the additional production that large-scale renewables expansion will bring. As this situation develops, NEPCO and the EMRC are working closely with the EBRD on studying the potential scenarios and technologies to upgrade the grid to make smarter energy supply and management decisions. This will include the installation of various smart metering technologies and other physical infrastructure upgrades. The purpose of this action is to prepare the necessary technical assistance (planning, capacity building, and training) to national energy and electricity sector stakeholders, in order to effectively implement smart upgrades to Jordan’s electricity grid. This action would complement the planned infrastructure investments and debt restructuring interventions already underway with the EBRD and World Bank, in collaboration with NEPCO and the EMRC. In particular, this action would prepare NEPCO and EMRC to jointly lead a national transition towards smart grid development, and to engage with electricity consumers at all levels (residential, industrial, and commercial sectors) on the future of energy management in Jordan and the implications on their energy use. This action will result in both electricity consumers’ and NEPCO’s improved understanding of smart energy technologies and applications, allowing them to adapt their energy management approaches in support of Jordan’s energy objectives. This action constitutes the undertaking of three assessment studies, development and delivery of training, development and implementation of a stakeholder communication and outreach plan over a period of three years, as well as an evaluation of the efficiency and effectiveness of the outreach and communication plan’s implementation. Action ƒ To enhance the capacity of national energy and electricity sector stakeholders to effectively Objectives implement smart upgrades to Jordan’s electricity grid. ƒ To improve the capacity of NEPCO and EMRC to jointly lead a national transition towards smart grid development, and to engage with electricity consumers at all levels on the future of energy management in Jordan and the implications on their energy use. ƒ To enhance stakeholders’ understanding and appreciation of the value for sector transition into smart electricity grid, service market development opportunities, policy changes needed, and the economic, environmental, and social impacts from the transition. Implementation ƒ One training and awareness raising needs assessment study conducted following Milestones participatory approaches. ƒ One training and capacity development plan for NEPCO and EMRC on the topic of smart grid development and energy management approaches. ƒ One assessment report on the economic, environmental, and social impacts of the transition towards a smarter electricity grid and management system, identifying the technical challenges and opportunities for distribution companies, government (especially in terms of fiscal impacts), energy service companies (ESCOs) and end-users for this transition. ƒ One assessment report on the energy services market development opportunities, detailing the policy changes needed to incentivize the creation of local businesses that can support smarter energy management in Jordan. ƒ Stakeholder communication and outreach plan for large and small-scale users (industrial, residential, commercial, public/government, etc.) and across key sectors (e.g. transport, water, etc.), aimed at increasing awareness about energy savings and efficiency opportunities under the planned smart grid and automation upgrades in the coming years. ƒ Evaluation report on the implementation of the stakeholder communication and outreach plan. ƒ Action Plan for the smart meters’ substitution.

28 Energy Sector Energy Sector Green Growth Actions 2021-2025 Relevant ƒ Sustainable Economic Growth: Enhance innovation and technical capacities in the energy Green Growth sector; Support the reduction of energy sector-based public debt. Objectives ƒ Resource Efficiency: Reduce energy network losses and improve energy management in utilities; Increase the efficiency of energy use (including electricity and fuels). ƒ Climate Change Adaptation and Mitigation: Decrease total GHG emissions from energy sector activities. Estimated Implementation Period Start Year — 2021 End Year — 2023 Location(s) National Other key EBRD, World Bank, EU partners Implementing Lead EMRC Stakeholders Support MEMR, NEPCO, Electricity distribution companies Estimated USD 3,500,000 Budget for this Action Financing Yes Potential Source To be determined (TBD) in the Secured No of Funding validation phase Action leads to Yes Estimated - investment No Investment Size This action is an Investment opportunity Level of Priority Readiness for Implementation Very High High Medium 1 2 3 4 5 ƒ Technical assistance and investment preparation activities are ongoing as part of the EBRD loan for NEPCO restructuring. Implementation ƒ Strong and effective communication and collaboration is needed. Therefore, this action Risk Mitigation includes the development and implementation of a communication and outreach plan. Measures ƒ The action is advised to establish partnerships with national mass media and active social media players to implement the outreach program. Collaboration also needs to be established and maintained with related sector leading organizations, including the Ministry of Trade and Industry, Ministry of Tourism and Antiquities, municipalities, Chambers of Commerce and Industry, etc. This will enhance the overall reach of the awareness messages to a wider spectrum of the Jordanian community.

29 Green Growth National Action Plan 2021-2025 EN02 Develop Industrial Renewable Energy Roadmap and Investment Plan Description Consuming 17% of total energy and 24% of electricity, Jordan’s industrial sector is a critical component of the country’s economic growth and will play an important role in the development of the green economy.54 In 2015, the Jordan Chamber of Industry (JCI) established an Energy and Environmental Sustainability Unit to help ensure that industrial actors are able to effectively support Jordan’s energy transition. The unit advocates for energy sector interventions that can reduce the price and increase the sustainability of energy supply for industrial application. Electricity costs can represent a substantial portion of overall operating costs for some industrial sub-sectors. As of 2019, the Ministry of Energy and Mineral Resources and JREEEF has worked with over 60 factories to develop energy rationalization plans, aimed at improving EE. However, currently 66% of energy costs for industry are related to the production of heat, for which RE can be a viable power supply option. Concentrated solar power (CSP) is one technology that has continued to drop in price55 as R&D has globally improved and could be a viable option for Jordan’s industrial sector. The purpose of this action is to identify a pipeline of industrial sector RE projects that can help deliver on both industrial energy rationalization plans and Jordan’s overall RE generation targets for 2025 and beyond. This action will support the identification of priority projects, timelines, and targets, as well as the undertaking of necessary pre-feasibility and feasibility analysis for a small number of priority projects to promote the industrial use of RE. In addition, the program will address the necessary policy, and R&D-related activities will be elaborated, including a program to explore the potential for CSP solutions for industrial applications. This action will be implemented in partnership with the private sector, government, and research/civil society institutions. Action ƒ Improve the readiness of industrial actors to implement RE projects. Objectives ƒ Support planning and prioritization of RE projects for government. ƒ Enhance innovation in the area of thermal energy generation for industrial application in Jordan. ƒ Increase evidence-based decision making by public and private electricity sector stakeholders to support the adoption of CSP. ƒ Stimulate industrial sector investments in RE projects that can help deliver on both industrial energy rationalization plans and Jordan’s overall RE generation targets for 2025 and beyond. ƒ Stimulate industrial sector contribution to achieving Jordan’s overall renewable energy generation targets for 2025 and beyond. Implementation ƒ One stakeholder’s analysis study conducted and reported on. This study should identify and Milestones prioritize stakeholders to be partnered with, and should suggest the communication and outreach requirements and frameworks for each. ƒ Partnerships established between industrial actors, local R&D institutions, and government to jointly develop the action plan. ƒ Necessary assessment studies to identify the renewable energy deployment potential in the industry sector, explore usages for RE in addition to electricity generation, such as producing heat for industries. ƒ A pipeline of renewable energy investment projects (mainly CSP) with full concept note and pre-feasibility assessment for at least 20 new projects, and full-feasibility assessment for at least 5 high priority projects selected based on the outcomes from the pre-feasibility stage. ƒ A research and development (R&D) agenda to explore the opportunities and challenges associated with industrial energy use, including but not limited to CSP, for generating thermal energy for industrial application. This agenda will also identify policy aspects related to the exploration and implementation of the potential for CSP solutions for industrial applications. ƒ Industrial Renewable Energy Roadmap and Investment Plan. This road map should clearly discuss the arrangements for the implementation of the identified/prioritized investment projects, and for the implementation of the R&D agenda. 54 JCI. “Overview of the Potential for Renewable Energy in the Industrial Sector in Jordan,” 2018. 55 IRENA. “Renewable Power Generation Costs in 2018,” 2018.

30 Energy Sector Energy Sector Green Growth Actions 2021-2025 Relevant ƒ Sustainable Economic Growth: Reduce the country’s reliance on fossil fuel imports; Green Growth Increase the affordability of energy for industrial and commercial consumers. Objectives ƒ Climate Change Adaptation and Mitigation: Decrease total consumption of energy from fossil fuel resources; Decrease total GHG emissions from energy sector activities. Estimated Implementation Period Start Year — 2021 End Year — 2022 Location(s) - Other key Ministry of Industry and Trade, partners GAM, Aqaba Special Economic Implementing Lead Ministry of Energy and Mineral Zone Authority (ASEZA), Stakeholders Resources (MEMR) concerned development and Support JCI, NEPCO, NERC donor agencies Estimated USD 1,000,000 Budget for this Action Financing Yes Potential Source To be determined (TBD) Secured No of Funding Action leads to Yes Estimated TBD during action implementation, investment No Investment Size in light of the findings from This action is an Investment the assessment pre-feasibility analysis studies opportunity Level of Priority Readiness for Implementation Very High High Medium 1 2 3 4 5 ƒ The World Bank has begun working on a feasibility analysis for CSP in the Jordan context.

31 Green Growth National Action Plan 2021-2025 EN03 Improve the market for green building and construction services Description This action aims to provide technical assistance to municipal governments in the project’s location, with the support of MPWH, the Jordan Engineer’s Association, and private sector construction and engineering companies, to better understand and further develop the green construction services market in Jordan. A feasibility analysis will be undertaken to identify locations for greener buildings, and construction of new green buildings. Additionally, retrofitting activities will be carried out according to Jordan’s green building code and the recommendations from the JGBC for improving EE in the residential sector. The result will be an increase in the total number of green buildings in Jordan, and a detailed post-implementation analysis as well as recommendations on how to further replicate and scale up green residential buildings across Jordan. Action ƒ Increase the awareness of key related stakeholders about the environmental and economic Objectives values of green construction, and the need to further develop the green construction services market in Jordan. ƒ Enhance and streamline the capacity of related stakeholders to plan for and develop green affordable housing across Jordan. ƒ Improve the understanding about the feasibility, investment needed and impacts from the implementation of projects to increase the total number of green affordable housing in Jordan. ƒ Stimulate residential investments, in particular affordable housing investments, by adopting and implementing green building codes and measures needed to rationalize the consumption of resources and to promote more effective energy and water conservation. ƒ Reduce energy consumption by the residential sector through the adoption of green building codes, and through the mitigation of the sector’s contribution to climate change. Implementation ƒ One stakeholders’ training needs study conducted and reported on. This study should Milestones identify and prioritize stakeholders to be partnered with, as well as the needed framework for capacity building and technical assistance. ƒ Stakeholders’ understanding of the value of green buildings, and their capacity to further develop the green construction services market in Jordan through: ƒ The implementation of training events, and publishing educational materials and modules on a dedicated website, to enhance stakeholders’ capacity. This includes training on Jordan’s green building code and the recommendations from the JGBC for improving EE in the residential sector. ƒ The provision of technical assistance delivered through on-job mentoring and technical advice services for a period of two years. ƒ The provision of technical assistance for participatory development of the road map and agenda mentioned below. ƒ One feasibility analysis study and Strategic Environmental Assessment for the construction of new green buildings, and for renovating all unsold affordable housing buildings to meet green housing codes. This should include sites’ selection, planning and prioritization for the scale-up of green affordable housing, and construction of new green buildings or retrofitting activities. ƒ One road map and agenda to: ƒ Provide detailed post-implementation analysis and recommendations for how to further replicate and scale up green residential buildings across Jordan. ƒ Mainstream Jordan’s green building code and the recommendations from the JGBC for improving EE in the residential sector.

32 Energy Sector Energy Sector Green Growth Actions 2021-2025 Relevant ƒ Sustainable Economic Growth: Enhance innovation and technical capacities in the Green Growth energy sector. Objectives ƒ Social Development and Poverty Reduction: Maintain access to reliable, affordable, and sustainable energy for all. ƒ Resource Efficiency: Increase the efficiency of energy use (including electricity and fuels). ƒ Climate Change Adaptation and Mitigation: Decrease total GHG emissions from energy sector activities. Estimated Implementation Period Start Year — 2021 End Year — 2022 Location(s) Nationwide Other key International partners development Implementing Lead MEMR, MPWH, Royal Scientific organizations, donors, Stakeholders Society (RSS) commercial banks, Support JEA, ASEZA, GAM, MOLA United Nations (UN) Habitat Estimated USD 1,000,000 Budget for this Action Financing Yes Potential Source To be determined (TBD) in the Secured No of Funding validation phase Action leads to Yes Estimated - investment No Investment Size This action is an Investment opportunity Level of Priority Readiness for Implementation Very High High Medium 1 2 3 4 5 ƒ Two pilot projects have been implemented and lessons learned can be gathered from implementers (JGBC and UN Habitat) for ease of replication.

33 Green Growth National Action Plan 2021-2025 EN04 Develop and Implement a National Green Building Strategy and Action Plan Description The purpose of this action is to improve the existing policy, regulatory and strategic framework for green buildings in Jordan by establishing a National Green Building Strategy and Action Plan. Through this action, stakeholders at MPWH (host of the National Building Council), the MEMR, municipal governments such as GAM and the MoEnv, will work with the construction and engineering private sector stakeholders to map out a pathway to achieve a step-increase in the implementation of green buildings. The result of this action would be a well- coordinated and clearly articulated national green building strategy with timelines, targets, clarified roles, and responsibilities and projects for implementation up to 2030. The strategy and action plan would build on NEEAP, covering projects and policies to be implemented in order to increase the scale up of green building construction in the public, residential, commercial, and industrial buildings sectors. Public-private dialogue and the establishment of a national multi-stakeholder coordination mechanism will support successful implementation, and ensure the achievement of economic co-benefits (such as employment and SME development). Action ƒ Improve the enabling environment for green growth and EE in the building/ Objectives construction sector. ƒ Increase the awareness of key related stakeholders about the environmental and economic values of green construction and green buildings, and the need to further develop the green construction services market in Jordan. ƒ Enhance and streamline the capacity of related stakeholders to plan for and develop green buildings across Jordan. Implementation ƒ Identify and assess policy, regulatory and strategic improvement measures to integrate Milestones NEEAP with the proposed strategy. ƒ National-level coordination committee established to: ƒ Facilitate and improve coordination and collaboration across all organizations concerned with green buildings. ƒ Map out a pathway to achieve a step-increase in the implementation of green buildings. ƒ Lead the development of the National Green Building Strategy and Action Plan, and facilitate all-inclusive stakeholders’ participation in strategy formulation. ƒ National Green Building Strategy and Action Plan. Building on national lessons learned and regional and global best practice, MPWH will lead the development of a national strategy and action plan aimed at reducing the energy consumption and GHG emissions profile of the buildings sector in Jordan. This will be closely linked to energy-sector targets, as laid out in the Amman Climate Action Plan, as well as various national Sustainable Energy, Climate Action Plans, and the Energy Master Strategy. The strategy will identify policy changes and investments required for successful implementation, which will be developed in partnership with local materials production facilities, construction companies, and engineering associations through multi-stakeholder consultation processes. This should include a number of incentives to be established in order to promote the development of a green building and green construction materials market. Employment and SME development opportunities should also be considered in the action plan. ƒ Pipeline of projects and policies to be implemented to increase the scale of green building construction in the public, residential, commercial, and industrial buildings sectors. These include a set of incentives to motivate investments in green buildings, such as the implementation of at least the policy projects during the Action implementation duration.

34 Energy Sector Energy Sector Green Growth Actions 2021-2025 Relevant ƒ Sustainable Economic Growth: Enhance innovation and technical capacities in the Green Growth energy sector. Objectives ƒ Resource Efficiency: Increase the efficiency of energy use (including electricity and fuels). ƒ Climate Change Adaptation and Mitigation: Decrease total GHG emissions from energy sector activities. Estimated Implementation Period Start Year — 2021 End Year — 2022 Location(s) National, TBD Other key EU, USAID, DfID, private partners sector construction Implementing Lead MPWH, MEMR, MoEnv, Municipalities companies Stakeholders Support JGBC, JEA Estimated USD 3,000,000 Budget for this Action Financing Yes Potential Source To be determined (TBD) Secured No of Funding Action leads to Yes Estimated - investment No Investment Size This action is an Investment opportunity Level of Priority Readiness for Implementation Very High High Medium 1 2 3 4 5 ƒ A basic understanding exists of the scale of interventions necessary, with several national pilots having been conducted. Additional analysis and strategic decision-making are needed. Implementation ƒ Establishment of the national coordination committee is critical to ensuring implementation, Risk Mitigation which can be facilitated by the MoEnv. Measures ƒ Public-private dialogue, especially with the local residential and commercial buildings construction industry, will likely be necessary for success.

35 Green Growth National Action Plan 2021-2025 EN05 Conduct Energy Efficiency Retrofits for Public Buildings Description The purpose of this action is to implement a number of EE upgrades in public buildings in Jordan based on the current priorities of MPWH, which is the ministry responsible for the management of public buildings across the country. The action will build on the approach and successes experienced under the MINARET project implemented by RSS/NERC, which is expected to achieve an estimated energy savings of 800 MWh per year, and an estimated JD 160,000 per year. These retrofits will include several interventions to improve the EE of the lighting, heating and cooling, insulation, and appliances used in selected public buildings. The results of this action will be a reduction of energy consumption in selected public buildings, a provision of support to the implementation of NEEAP, and a reduction of the cost of maintenance of buildings, further decreasing the cost burden on the public budget. Action ƒ Implement a number of EE upgrades in public buildings in Jordan. Objectives ƒ Decrease the cost burden from the energy operation as well as the maintenance costs of selected public buildings on the public budget. ƒ Support the implementation of NEEAP regarding the EE and operation and maintenance costs. Implementation ƒ One review report on the evaluation of EE of public buildings across Jordan, validating Milestones the current priorities identified by the MoPWH. This review should also include documentation and cost analysis. ƒ Detailed plan for the undertaking of EE upgrades in selected priority public buildings, including detailed budgets and estimated energy savings from such upgrades. ƒ EE upgrades of the selected priority public buildings completed and handed over to the respective owners. This can include, but is not limited to, thermal retrofitting, installation of energy efficient lighting and appliances, smart energy metering, and others. ƒ Conduction of an awareness and behavior change program for users of the retrofitted buildings, including training on improved energy consumption behavior in public buildings. ƒ Two annual energy audits to assess project achievements. ƒ A roadmap and detailed budget created for scaling up the implementation of EE upgrades to all public buildings over a period of five years. This will include a business model with a well‑defined payback period and an energy/cost savings analysis that can be published for public use. Relevant ƒ Sustainable Economic Growth: Support the reduction of energy sector-based public debt. Green Growth ƒ Resource Efficiency: Increase the efficiency of energy use (including electricity and fuels). Objectives ƒ Climate Change Adaptation and Mitigation: Decrease total GHG emissions from energy sector activities. Estimated Implementation Period Start Year — 2021 End Year — 2023

36 Energy Sector Energy Sector Green Growth Actions 2021-2025 Location(s) National Other key KfW partners Implementing Lead MPWH, RSS Estimated USD 1,500,000 Stakeholders Support MEMR Budget for this Action Financing Yes Potential Source KfW, public budget Secured No of Funding Action leads to Yes Estimated Up to USD 20,000,000 investment No Investment Size This action is an Investment opportunity Level of Priority Readiness for Implementation Very High High Medium 1 2 3 4 5 ƒ A program is currently under implementation by KfW that has a well-defined payback period and clear results plan; this can be relatively easily scaled up through a similar size and structured intervention. Implementation Risk Mitigation Measures

37 Green Growth National Action Plan 2021-2025 EN06 Implement Electric Vehicle Charging Stations and Service Provision in GAM through a Public- Private Partnership Description The purpose of this action is to attract investments to establish a network of slow and fast EV charging stations in the City of Amman in order to respond to the growing service demand. Through this action, MoT, the GAM, NEPCO, and the EMRC will work to determine the scale of investment required to implement sufficient charging infrastructure and service provision contracts in order to respond to the national demand. Then, GAM and EMRC will work with the NEPCO and MoF to undertake the necessary investment preparation (feasibility analysis and regulatory adjustments) to attract private sector partnership with the aim of financing the implementation of a number of charging stations to be operated by a private sector service provider. The charging infrastructure will be linked to ongoing efforts to develop a smarter electricity grid, and technical assistance will be provided to NEPCO and EMRC on how to leverage the EV charging consumption for better supply and demand management to achieve greater EE and revenue generation. The result will be an increase in the access to EV charging services in the City of Amman, improved ability to manage supply and demand of energy at peak hours of the day, and increased electricity consumption, which will contribute to improving NEPCO’s financial status and Jordan’s overall fiscal situation. Action ƒ Establish a network of slow and fast EV charging stations in the City of Amman to respond Objectives to growing demand for services. ƒ Improve the enabling environment for green growth and EE in the transport sector. ƒ Increase the awareness of key related stakeholders about the environmental and economic values of EVs, and the need to further develop the green transport infrastructure in Jordan. Implementation ƒ A study undertaken to determine the scale of investment required to implement sufficient Milestones charging infrastructure and service provision contracts to respond to national demand. ƒ Develop the necessary investment preparation (feasibility analysis and regulatory adjustments) to attract private sector partnership to finance the implementation of a number of charging stations to be operated by a private sector service provider. ƒ Provide technical assistance to NEPCO and EMRC on how to leverage the EV charging consumption for better supply and demand management to achieve greater EE and revenue generation. ƒ Prepare a feasibility study for PPP investments in the development of EV Charging Stations and Service Provision. ƒ Prepare a marketing package and tender documents for PPP investments in the development of EV Charging Stations and Service Provision. ƒ Tendering process commenced and best bidders selected. Relevant ƒ Sustainable Economic Growth: Reduce the country’s reliance on fossil fuel imports; Green Growth Support the reduction of energy sector-based public debt. Objectives ƒ Climate Change Mitigation and Adaptation: Decrease total consumption of energy from fossil fuel resources; Decrease total GHG emissions from energy sector activities. ƒ Enhanced Natural Capital: Limit air pollution from fossil fuel use.

38 Energy Sector Energy Sector Green Growth Actions 2021-2025 Estimated Implementation Period Start Year — 2021 End Year — 2023 Location(s) GAM Other key UNIDO, GGGI partners Implementing Lead NEPCO, EMRC, GAM, MOF Estimated USD 1,300,000 Stakeholders Support MEMR, MoT, MoEnv Budget for this Action Financing Yes Potential Source Global Environment Facility (GEF) Secured No of Funding (UNIDO project) Action leads to Yes Estimated USD 15,000,000 investment No Investment Size This action is an Investment opportunity Level of Priority Readiness for Implementation Very High High Medium 1 2 3 4 5 ƒ Some feasibility analysis for this investment has already been conducted by GGGI, USAID, and potentially others. ƒ UNIDO has been approved for funding through a GEF grant, to be implemented with MoT. Implementation ƒ Strong public-private dialogue is required at the project initiation phase to ensure Risk Mitigation investment is secured. Measures ƒ Government energy and transport regulators should be fully engaged to ensure policy conditions meet the business development requirements of investors.

39 Green Growth National Action Plan 2021-2025 EN07 Develop a Behavior Change Campaign and Financial Mechanism to Increase Use of Energy Efficient Appliances in Jordan Description The purpose of this action is to establish a behavior change and awareness campaign and a source of finance to increase the use of energy efficient appliances in residential and commercial settings, which represents 60% of all energy consumption in Jordan. This action will have two components. First, it will assess the effectiveness of the improved Minimum Energy Efficiency Standards (MEES) policy established in 2014, by surveying and analyzing behavior and attitudes of local manufacturers, retail importers/sales and consumer of appliances, starting at the end of the 2015 UNDP/GEF project “Energy Efficiency Standards and Labelling in Jordan”. Gaps in effectiveness will be assessed against the results framework from that project, and a behavior change campaign will be developed to address these gaps. Second, a source of finance will be established based on the estimated level of demand for an appliance replacement and/or purchase incentive program. Capacity building will be conducted for local ESCOs and JREEEF technical staff in order to provide homeowners, business owners, and retail appliance sellers with the necessary information to make the energy efficient purchase decision. Action ƒ Stimulate a behavior change through social marketing to increase the use of energy efficient Objectives appliances in residential and commercial settings. ƒ Develop and locate a source of finance and financing mechanism to increase the use of energy efficient appliances in residential and commercial settings. ƒ Achieve 25% rate of replacement of old, high energy consuming appliances, with energy efficient appliances by the end of the year 2024, and accordingly reduce energy consumption at residential and commercial establishments by 15% or more. Implementation ƒ Conduct a technical assessment and feasibility analysis for the replacement of old, high Milestones energy consuming appliances, with energy efficient appliances prepared using recent statistics from DOS. ƒ Identify and evaluate financial mechanisms and financing options to replace high-energy consuming appliances with energy efficient ones. This evaluation should note affordability and willingness to pay by the different economic levels of the Jordanian community, and identify the necessary economic incentives (tax and customs reduction, etc.). This should also include green financing options in collaboration with credit companies, financing companies, and commercial banks. ƒ A source of finance and financing mechanism developed and operated to increase the use of energy efficient appliances in residential and commercial settings. ƒ One public awareness and communication program developed and implemented, in partnership with mass and social media, to announce and explain the developed financing mechanism. ƒ Periodic monitoring of appliances’ replacement and public awareness implemented and used to inform the adoption of the financing mechanism and the awareness program. The monitoring should note sales of Jordanian energy efficient appliances compared to imported ones. Relevant ƒ Social Development and Poverty Reduction: Maintain access to reliable, affordable, and Green Growth sustainable energy for all. Objectives ƒ Resource Efficiency: Increase the efficiency of energy use (including electricity and fuels). ƒ Climate Change Adaptation and Mitigation: Decrease total GHG emissions from energy sector activities.

40 Energy Sector Energy Sector Green Growth Actions 2021-2025 Estimated Implementation Period Start Year — 2021 End Year — 2024 Location(s) - Other key UNDP, UN-Environment. partners Green Climate Fund Implementing Lead MEMR, JREEEF (GCF) Stakeholders Support JSMO, RSS/NERC, Chambers of Estimated USD 4,000,000 Commerce Budget for this Action Financing Yes Potential Source GCF small grants (SAP) Secured No of Funding Action leads to Yes Estimated Small revolving fund, approximately investment No Investment Size USD 5,000,000 to begin This action is an Investment opportunity Level of Priority Readiness for Implementation Very High High Medium 1 2 3 4 5 ƒ A results framework for measuring the impact of the appliance S&L regime has been developed by UNDP through a GEF grant in 2015, but follow up to this program is unclear. ƒ Commercial sector appliances were not included, so additional scoping and analysis would be required, and engagement with additional commercial sector stakeholders needed. Implementation ƒ Fiscal incentives may be needed to encourage importing of more energy efficient appliances. Risk Mitigation ƒ A strong enforcement and inspection regime are required for effective implementation. Measures

41 Green Growth National Action Plan 2021-2025 EN08 Develop and Implement a National Energy Storage Action Plan and Investment Pipeline Description The purpose of this action is to establish a short-to-medium term strategy to address Jordan’s energy storage needs, which is a critical enabling component of the country’s RE transition. With the establishment of the legal and regulatory frameworks for energy storage expected by the end of 2021, Jordan is prepared to undertake a step-increase in energy storage investment. Therefore, this action aims to develop a strategy and action plan to carry forward the findings of the various ongoing feasibility studies, which are part of the EU, EBRD and World Bank support programs related to battery and hydro-pumped storage options. The strategy will lay out detailed decision- making criteria for energy storage investment, and identify the roles and responsibilities of national stakeholders in the development and implementing of storage projects, including local R&D institutions. As a result of this action, Jordan will be better prepared to make investment decisions about the types, sizes, and locations of various energy storage projects, as well as being able to build the national expertise and institutional support to become a regional leader in energy storage as part of the low-carbon energy transition. The action will also include a set of concept notes to be used as potential investment proposals for public, private, and PPP financing. Action ƒ Establish a short-to-medium term action plan to address Jordan’s energy storage needs, Objectives which is a critical enabling component of the country’s RE transition. This includes: ƒ Enhancing Jordan’s capacity for investment decision-making in terms of the types, sizes, and locations of various energy storage projects, to thus undertake a step-increase in energy storage investment. ƒ Building the national expertise and institutional support in Jordan to become a regional leader in energy storage as part of the low-carbon energy transition. Implementation ƒ One action plan developed to carry forward the findings of the various ongoing feasibility Milestones studies as part of the EU, EBRD, and World Bank support programs related to battery storage and hydro-pumped storage options. The action plan will lay out the following: ƒ Recommendations for policy and regulatory modifications, and institutional capacity building needed to govern energy storage aspects. ƒ Detailed decision-making criteria for energy storage investment decision making. ƒ Institutional framework defined, with clear roles and responsibilities of national stakeholders in development and implementing storage projects, including local R&D institutions. ƒ Actions for improving national experts’ knowledge and skills related to energy storage, and its environmental management, including hazardous waste management. ƒ A set of recommendations for regional collaboration to stimulate Jordan’s potential to become a regional leader in energy storage as part of the low-carbon energy transition. ƒ The Action Plan implemented will be periodically monitored and evaluated. This will include, but not necessarily be limited to: ƒ Implementation of the institutional and regulatory recommendations. ƒ Implementation of the training program. ƒ Implementation of experimental/pilot energy storage projects. ƒ A pipeline of projects and/or a set of concept notes to be used as potential investment proposals for public, private, and PPP financing. ƒ A detailed feasibility analysis, preliminary design, and tender documents for PPP investments for at least 10 energy storage projects. This includes the completion of the tendering process to select PPP investors.

42 Energy Sector Energy Sector Green Growth Actions 2021-2025 Relevant ƒ Sustainable Economic Growth: Support the reduction of energy sector-based public debt; Green Growth Enhance innovation and technical capacities in the energy sector. Objectives ƒ Resource Efficiency: Reduce energy network losses and improve energy management in utilities. ƒ Climate Change Adaptation and Mitigation: Decrease total GHG emissions from energy sector activities. Estimated Implementation Period Start Year — 2022 End Year — 2024 Location(s) National Other key EBRD, World Bank partners Implementing Lead MEMR, NEPCO Estimated USD 10,000,000 Stakeholders Support - Budget for this Action Financing Yes Potential Source EBRD, EU Secured No of Funding Action leads to Yes Estimated To be determined (TBD) based on investment No Investment Size feasibility analysis This action is an Investment opportunity Level of Priority Readiness for Implementation Very High High Medium 1 2 3 4 5 ƒ Total amount of energy storage needed is currently unclear, but feasibility analysis is being undertaken as part of the EBRD and EU technical assistance programs.

43 Green Growth National Action Plan 2021-2025 EN09 Increase Public Investment in Energy Sector Research and Development Description The purpose of this action is to improve the coordination and availability of resources for a dedicated national program for the energy sector’s R&D and innovation. The implementation of this action will be led by MEMR, with close coordination of national education, research and innovation stakeholders, as well as private sector actors. First, MEMR will undertake an economic feasibility study to examine the potential ROI for different R&D investment scenarios in terms of private sector market development and employment creation potential. The preferred scenario will be chosen based on a cost-benefit analysis, with the objective of improving Jordan’s competitive advantage in the development of energy science and technology. This will then lead to the development of policy recommendations to ensure the appropriate allocation of funds to Jordanian education and research institutions, and tp Jordanian private sector energy companies. Fund allocation use and impacts will be monitored by the MEMR and the MoF. Specific efforts will be taken to ensure strong national coordination between R&D activities and innovation, and green growth impacts. Action ƒ Improve the coordination and availability of resources for energy sector R&D Objectives and innovation. ƒ Stimulate and maintain growth in energy sector R&D and innovation. Implementation ƒ National Steering Committee established under the umbrella of MEMR to lead and Milestones coordinate the implementation of this action, and to facilitate collaboration with all related stakeholders. ƒ An economic feasibility study undertaken by MEMR to examine the potential ROI for different R&D investment scenarios in terms of private sector market development and employment creation potential. The feasibility study will also: ƒ Identify the preferred scenario based on cost-benefit analysis, with the objective of improving Jordan’s competitive advantage in the development of energy science and technology. ƒ Identify policy recommendations to ensure the appropriate allocation of funds to Jordanian education and research institutions, and to Jordanian private sector energy companies. ƒ A dedicated national program for energy sector R&D and innovation developed with a clear 5-year road map, action plan, and monitoring framework. ƒ Jordan’s energy sector R&D and innovation fund established within MEMR. This includes the following sub-milestones: ƒ Regulatory frameworks developed and ratified by the government. ƒ Fund institutionalization arrangements are in place, and staff responsible for fund management are assigned. ƒ Financial and administrative management frameworks, procedures, and forms are developed and approved by the respective authorities. ƒ Core fund allocated by the government and other funding agencies. ƒ Fund investment strategy for the first five years, which should explain the strategic direction for R&D and innovation investments for five years, priority research topics for the first five years, funding eligibility criteria, funding instruments, transparency policy and measures. ƒ Develop and implement a fund raising strategy and fund sustainability plan. ƒ Outreach and fundraising program funded, developed, implemented and monitored to motivate researchers and inventors to apply for grants/loans for related research, and to contribute to strengthening the fund partnership networks and fundraising efforts for the fund. ƒ Fund allocation use and impacts monitored by the MEMR and the MoF. Quarterly monitoring reports and annual financial audits disclosed publicly.

44 Energy Sector Energy Sector Green Growth Actions 2021-2025 Relevant ƒ Sustainable Economic Growth: Enhance innovation and technical capacities in the Green Growth energy sector. Objectives ƒ Social Development and Poverty Reduction: Increase opportunity for employment in the energy sector, especially for women and youth. Estimated Implementation Period Start Year — 2021 End Year — 2025 Location(s) National Other key UNDP, IFC, other donor and partners lending agencies Implementing Lead MEMR, RSS Estimated USD 5,000,000 (constituting USD Stakeholders Support MoF, MoEd, Budget for this 3,000,000 as core investment in the MoHE, energy companies, Action fund, and the other USD 2,000,000 for the preparatory studies, establishment universities and research of the fund, staff salaries, and for the centers implementation of the outreach and fundraising program). Financing Yes Potential Source To be determined (TBD) in the Secured No of Funding validation phase Action leads to Yes Estimated USD 10,000,000 new research investment No Investment Size investments possibly funded by This action is an Investment donor and development agencies, private sector investments or opportunity contributions through their CSR programs over a period of five years after successful implementation of this action. Level of Priority Readiness for Implementation Very High High Medium 1 2 3 4 5 ƒ A national R&D strategy exists, but a specific program to advance R&D in the energy sector has not been developed. Implementation ƒ Engagement of all related stakeholders in the formulation of the investment strategy and the Risk Mitigation definition of research priorities for funding is critical to ensuring the relevance of research Measures and innovation to Jordan’s priorities for advancing EE and generation of energy from renewable resources.

45 Green Growth National Action Plan 2021-2025 EN10 Achieve GCF Accreditation for the Jordan Renewable Energy and Energy Efficiency Fund (JREEEF) Description The purpose of this action is to increase Jordan’s access to climate finance for the purpose of supporting its transition towards a low-carbon energy system. To implement this action, steps will be taken to improve the institutional arrangements within JREEEF, so that it can become a national Direct Access Entity (DAE) to the GCF. This might include the development or improvement of a Social and Environmental Safeguards policy, technical capacity, fiduciary policies, strategic readiness, and potentially others. Because JREEEF has already received support for accreditation readiness and work has already begun to develop the Cities and Villages Development Bank (CVDB) as a DAE for Jordan, the process and change of accreditation is expected to be simpler and quicker. The result of this action will be an increase in JREEEF’s ability to directly finance or provide subsidies necessary to implement Jordan’s future energy master strategy, and its NREAP and NEEAP. Action ƒ Increase JREEEF’s ability to directly finance or provide subsidies necessary to implement Objectives Jordan’s future energy master strategy, and its NREAP and NEEAP. Implementation ƒ Policy, legal and institutional review of JREEEF undertaken to identify policy, legal and Milestones institutional measures needed to quality as national DAE to the GCF. ƒ Institutional arrangements within JREEEF developed and enhanced such that it can become a national DAE to the GCF. This includes: ƒ The development or improvement of a Social and Environmental Safeguards policy. ƒ Development of JREEEF technical capacity, fiduciary policies, strategic readiness, and potentially others. ƒ One training program implemented for JREEEF staff to undertake the responsibilities of being national DAE to the GCF. ƒ Change of JREEEF accreditation to become national DAE to the GCF. ƒ A communication and outreach program developed and implemented for JREEEF as national DAE to the GCF. ƒ Pipeline of Jordan priority projects prepared (as concept notes) for application to the GCF. The identification and formulation of project concepts should be fully participatory and engaging of all related stakeholders. Relevant ƒ Sustainable Economic Growth: Reduce the country’s reliance on fossil fuel imports. Green Growth ƒ Social Development and Poverty Reduction: Maintain access to reliable, affordable, and Objectives sustainable energy for all. ƒ Resource Efficiency: Increase the efficiency of energy use (including electricity and fuels). ƒ Climate Change Mitigation and Adaptation: Decrease total GHG emissions from energy sector activities. Estimated Implementation Period Start Year — 2021 End Year — 2022 Location(s) National Other key GGGI partners Implementing Lead MoEnv (Climate Change Directorate) Estimated USD 1,000,000 Stakeholders Support JREEF Budget for this Action

46 Energy Sector Energy Sector Green Growth Actions 2021-2025 Financing Yes Potential Source GCF Secured No of Funding Action leads to Yes Estimated - investment No Investment Size This action is an Investment opportunity Level of Priority Readiness for Implementation Very High High Medium 1 2 3 4 5 ƒ Basic understanding of JREEEF’s readiness for accreditation exists due to ongoing support programs. Implementation ƒ JREEEF can learn from the experience of the CVDB; knowledge exchange and partnership Risk Mitigation are encouraged throughout the JREEEF accreditation process. Measures

47 Green Growth National Action Plan 2021-2025 EN11 Improve the Enabling Environment and Capacity Development Support for the Growth of the Energy Services (ESCO) Market Description The purpose of this action is to develop the necessary policies, regulations, and technical capacity within Jordan’s energy services companies to support the achievement of Jordan’s low-carbon energy transition. ESCOs provide services such as analysis and audits, appliance and materials retrofits, energy management, project design and implementation, maintenance and operation, and various auxiliary energy services (such as heating and lighting). This action would provide business development support to selected ESCOs, particularly those providing EE-related services, by improving their financial and management capacity, marketing and branding, and the quality of their service provision. Steps will be taken to link ESCOs to key adjacent sub-sectors, such as transport, construction and engineering, agriculture and waste, and support them to develop relevant supporting business lines. As a result of this project, the overall market for energy and environmental services will be developed, supporting a broad range of green growth objectives. Action ƒ Develop the necessary policies, regulations and technical capacity within Jordan’s energy Objectives services companies to support the achievement of Jordan’s low-carbon energy transition. ƒ Stimulate the market for energy and environmental services to supporting a broad range of green growth objectives. Implementation ƒ One study to map ESCOs, to identify and assess their empowerment and development Milestones needs. This includes: ƒ Geo-database showing ESCOs locations, domains of services, types and locations of their implemented projects and services, etc. ƒ Development of a needs assessment study that should cover respective financial and technical capacity development needs. ƒ Policy and legal study. ƒ Roles and responsibilities framework prepared following participatory approaches and in full coordination with related sectors to link ESCOs to key adjacent sub-sectors, and to support them in the development of relevant supporting business lines. ƒ Cost-benefit analysis for identified businesses, supporting lines for development ƒ One road map with the detailed description of actions needed to provide support for improving their financial and management capacity, marketing and branding, and the quality of the ESCOs service provision. ƒ One training course developed and implemented for ESCOs to address identified training needs. ƒ One set of policy and regulatory recommendations needed to empower and further developed the EE-related services market and service providers. Relevant ƒ Sustainable Economic Growth: Increase competition and strengthen regulation of the Green Growth electricity market; Enhance innovation and technical capacities in the energy sector. Objectives ƒ Social Development and Poverty Reduction: Increase opportunity for employment in the energy sector, especially for women and youth. ƒ Resource Efficiency: Increase the efficiency of energy use (including electricity and fuels). ƒ Climate Change Adaptation and Mitigation: Decrease total GHG emissions from energy sector activities.

48 Energy Sector Energy Sector Green Growth Actions 2021-2025 Estimated Implementation Period Start Year — 2021 End Year — 2022 Location(s) National Other key USAID, MoF partners Implementing Lead EMRC, MEMR Estimated USD 1,000,000 Stakeholders Support Ministry of Digital Economy and Budget for this Entrepreneurship, RSS/NERC JEDCO, BDC, Action other business development support programs Financing Yes Potential Source To be determined (TBD) in the Secured No of Funding validation phase Action leads to Yes Estimated - investment No Investment Size This action is an Investment opportunity Level of Priority Readiness for Implementation Very High High Medium 1 2 3 4 5 ƒ Some work was done through the Jordan Energy Sector Capacity Building Program that could be scaled. Implementation ƒ Fiscal incentives for ESCOs may be needed; the business case and long-term economic Risk Mitigation impact (especially in terms of employment) should be thoroughly developed. Measures

49 Green Growth National Action Plan 2021-2025 EN12 Implement the Energy Sector Monitoring, Reporting and Verification (MRV) System. Description Jordan has a target to reduce its overall GHG emissions by 14% by the year 2030, most of which are expected to come as a result of the transition from fossil-fuel based energy consumption towards RE and greater EE. The purpose of this action is to develop the necessary protocols and build institutional capacity to implement an MRV system to credibly measure and report energy sector GHG gas emission reductions. MRV implementation will allow Jordan to fulfill the commitments made in its NDC, which will enable a continued international support for NDC implementation and for the development of a global carbon market, both of which are critical components of the global fight against climate change. Some technical arrangements have been made to prepare Jordan for participation in the global carbon market, such as the World Bank program under the “Partnership for Market Readiness”, which is implemented under the MoEnv’s leadership. Implementation of this action would result in the increased ability for government institutions to operationalize the systems and conduct effective energy-sector GHG monitoring, reporting, and verification. Action ƒ Develop, implement and maintain MRV, and accordingly enable Jordan to fulfill the Objectives commitments made in its NDC and enable continued international support for NDC implementation and for the development of a global carbon market. ƒ Increased ability for government institutions to operationalize the systems and conduct effective energy-sector GHG monitoring, reporting and verification. Implementation ƒ MRV developed and discussed with all national and international stakeholders. Milestones ƒ Improve the capacity of the MoEnv and other related stakeholders to efficiently implement and use the MRV. ƒ MRV data management and sharing policy developed following participatory approaches and efficiently implemented and monitored. ƒ Baseline data collected and arranged as a repository benchmark for future MRV analysis. ƒ MRV operationalized and maintained. Relevant ƒ Sustainable Economic Growth: Enhance innovation and technical capacities in the Green Growth energy sector. Objectives ƒ Climate Change Adaptation and Mitigation: Decrease total GHG emissions from energy sector activities. Estimated Implementation Period Start Year — 2021 End Year — 2022 Location(s) National Other key World Bank, IRENA partners Implementing Lead MEMR, MoEnv Estimated USD 3,000,000 Stakeholders Support MOPIC, DOS Budget for this Action

50 Energy Sector Energy Sector Green Growth Actions 2021-2025 Financing Yes Potential Source To be determined (TBD) in the Secured No of Funding validation phase Action leads to Yes Estimated - investment No Investment Size This action is an Investment opportunity Level of Priority Readiness for Implementation Very High High Medium 1 2 3 4 5 ƒ Software and hardware systems exist for MRV implementation from the World Bank PMR program; training will be provided for national stakeholders on this system. Implementation ƒ Implementation and full functioning MRV will require continuous training and capacity Risk Mitigation building for operations of the systems. A strong coordination between institutions and Measures an increase in the government’s capacity to measure and report relevant data in a timely manner is also required.

51 Green Growth National Action Plan 2021-2025 ANNEX 1: Energy Sector Green Growth Results Framework Indicator Definition Baseline Target Responsible Reporting Timeline and SDG Sustainable Economic Growth # and % Total # workers 8,369 - DOS - Produced workers in the in the “Electricity, (2016) annually energy sector Gas, Steam, and 0.72% air conditioning (2016) Latest is Supply” sector Total 2016 AND employees Total # workers 1,161,639 in the “Electricity, (2016) Gas, Steam, and air conditioning Supply” sector, relative to total national employment Data Source DOS Labour Force Survey http://www.dos.gov.jo/owa-user/owa/employment.emp_show_t1 Sector’s %GDP 2.3% (2015) - DOS Vision 2025 Annual contribution contribution of to GDP electricity and Latest water sector available is relative to 2016 national GDP (at constant 1994 market prices) Data Source DOS Jordan Statistical Yearbook 2016, issue 67, table 23.11 Social Development & Poverty Reduction % female Total # female 6.96% - DOS - Annual workers in the workers (2016) sector employed in the Latest “Electricity, Gas, available Steam, and air online is conditioning 2016 Supply” sector, relative to total employment in the sector Data Source DOS http://www.dos.gov.jo/owa-user/owa/employment.emp_show_t3 # and % youth Total # youth TBD - DOS - Available workers in the workers (aged annually, sector 15-24) employed through in the “Electricity, special Gas, Steam, and data air conditioning request Supply” sector, relative to total Latest is employment in 2017 the sector Data Source DOS Labour Force Survey SPECIAL DATA REQUEST

52 Energy Sector

ANNEX 1: Energy Sector Green Growth Results Framework Indicator Definition Baseline Target Responsible Reporting Timeline and SDG Resource Efficiency Electric powerElectric power 16.6% 11% by 2025 World Bank Vision 2025 World transmission transmission (2017) 2030 target Bank had and and distribution to be set annual distribution losses include after sector data, with losses (% of losses in actions are latest output) transmission established being 2014 between sources of supply and points of distribution and in the distribution to consumers, including pilferage Data Source World Bank https://data.worldbank.org/indicator/EG.ELC.LOSS.ZS?locations=JO Energy Total 8,944,000/ - DOS SDG 7.3.1 Latest is intensity consumption of 26,637.4 Energy 2015 measured primary energy = 336 intensity in terms in tons of oil (2015) measured Produced of primary equivalent, per in terms of annually energy and million JD GDP primary energy GDP at current market and GDP prices (C070301) Data Source DOS Environment Statistics 2015-2014 table 2.2.2.1 AND DOS Jordan Statistical Yearbook 2016, issue 67, table 23.6 Climate Change Adaptation and Mitigation Amount and Million metric 20,938 - DOS/MOENV National 2014 % of GHG tons of CO2e MtCO2e Communication emissions emissions in 2006 to UNFCCC Will be from the (MtCO2e) from (72.3 % of annual energy sector the energy sector Jordan’s once AND total GHG MOENV MtCO2e from the emissions) has energy sector, (2014) national relative to total inventory national GHG in place emissions Data Source DOS Environment Statistics 2015-2014 table 3.1.1.1 53 Green Growth National Action Plan 2021-2025