Enhancing Jordan’s Article 6 Transaction Readiness

Enhancing Jordan’s Article 6 Transaction Readiness

Location

    Period

    Jun 2025 - Mar 2027

    Funding (USD)

    usd

    882,841

    Project Code

    CTFR003

    Theme

    02 Climate Action

    Status

    Active

    Implementing Partners
    Resource Partners

    CTF

    Project Summary

    Jordan has committed to reducing its greenhouse gas emissions by 31% below baseline levels by 2030, with 26% of this target conditional on international support. Leveraging Article 6 of the Paris Agreement offers Jordan an important pathway to mobilize climate finance, strengthen institutional capacity, and accelerate its transition toward green growth.

    This project supports Jordan in finalizing and operationalizing its national Article 6 Framework, ensuring that the country has clear rules, procedures, and governance systems to effectively engage in international carbon markets.

    In addition, the project aims to build a pipeline of at least three initiatives with the potential to generate Internationally Transferred Mitigation Outcomes (ITMOs), helping translate policy frameworks into practical mitigation actions.

    By aligning with Jordan’s Economic Modernization Vision (2022–2033), which identifies sustainability and green growth as foundational pillars, the project directly contributes to the country’s broader strategy for economic transformation. It strengthens Jordan’s ability to mobilize green finance, promote private-sector engagement, and attract climate investments, thereby reinforcing national efforts to accelerate growth, improve quality of life, and secure a sustainable future.

    Project Goal and Objectives

    The project aims to strengthen Jordan’s readiness to engage in international carbon markets under Article 6 of the Paris Agreement. By establishing a robust policy framework, clear operational guidance, and a pipeline of high-quality mitigation activities, the project will enable Jordan to attract carbon finance, reduce emissions, and mobilize private-sector participation.

    Ultimately, this will support Jordan in achieving its Nationally Determined Contribution (NDC) targets while contributing to sustainable development benefits, including job creation and green investment opportunities. The project’s beneficiaries include government institutions, private sector actors, and local communities involved in mitigation projects.

    Context and Background

    Jordan faces rising temperatures, increasing water scarcity, and growing energy security risks. The energy sector accounts for 73% of the country’s greenhouse gas (GHG) emissions, while Jordan remains heavily reliant on imported fossil fuels. Although the country has set ambitious climate targets, achieving these goals requires significant international support.

    Jordan has already taken important steps to prepare for carbon market participation, including establishing a GHG monitoring, reporting, and verification (MRV) system, developing a national carbon registry, and drafting a carbon market framework. However, several gaps remain, including the absence of an approved national framework, unclear authorization procedures, limited stakeholder awareness, and a weak pipeline of mitigation projects.

    This project addresses these gaps by supporting the finalization of the national framework, providing operational tools and guidance, strengthening institutional capacity, and preparing mitigation activities for participation in carbon transactions.

    By doing so, the project will help position Jordan as a regional leader in carbon markets while contributing to the country’s Economic Modernization Vision and its international climate commitments.

    Project Results

    The project will enhance Jordan’s capacity to participate in and contribute to the development of international carbon markets by strengthening the institutional and technical readiness required for engagement under Article 6 of the Paris Agreement.

    It will also support the acceleration of global greenhouse gas (GHG) emission reductions by catalyzing carbon trading through Article 6 cooperative approaches.

    As a key institutional milestone, the project will contribute to the approval of Jordan’s Article 6 Framework, along with the related Operational Manual and Pricing Guidelines, providing the regulatory and operational foundation for carbon market participation.

    In addition, the project will support the establishment of a mitigation project pipeline by identifying three mitigation activities and advancing them to Mitigation Activity Idea Notes (MAINs) supported by feasibility studies. These efforts will help prepare projects for potential participation in international carbon transactions.