Status of Green Finance in Jordan

Status of Green Finance in Jordan Prepared by Eng. Samer Zawaydeh, Msc, PMP, CRM, REP, AEE Life Member

Presented at USAID Jordan Water Reuse and Environmental Conservation Project Green Finance Conference at Royal Scientific Society December 10, 2013 , Amman, Jordan

Eng. Samer A Zawaydeh, Msc, PMP, CRM, REP, AVS Association of Energy Engineers Assistant Director for International Membership Development for Middle East

Independent Engineer, providing Contractual, Project Management and Value Engineering services to the Construction and Energy Management industries – – – – – – – – –

Bachelor in Civil Engineering - Structures Masters in Structural Mechanics, USA Environmental and Energy Engineering Master Program Project Management Professional, PMP Associated Value Specialist, AVS King Abdullah II Award for Excellence, Mentor Carbon Reduction Manager, CRM Renewable Energy Professional, REP Legend in Energy, 2012

– The Community Power Reporter, Middle East

• Membership – Association of Energy Engineers AEE, Life Member – Several Local and International Energy Associations Samer Zawaydeh, Independent Engineer, Dec 2013

Jordan Overview by The World Bank • • • • • •

Upper Middle-Income Country Limited natural resources Population 6.4 million; 80 % urban; 38 % under 14 Per-capita GDP of US$4,340 World’s 4th poorest country in water resources Services is 70 %of (GDP) and 75% of jobs

Samer Zawaydeh, Independent Engineer, Dec 2013

Jordan Population Pyramid for 2010 Indirect Age Groups Size ~2.4 Million Working ~1.2 Million

~3.2Million Studying

Education, Training, and SMEs needed to create Jobs and Move the Economy Samer Zawaydeh, Independent Engineer, Dec 2013

JORDAN BUSINESS ENVIRONMENT-2014 Rank 119

Source: http://www.doingbusiness.org/~/media/giawb/doing%20business/documents/profiles/country/JOR.pdf World Bank’s World Development Indicators 2013. Samer Zawaydeh, Independent Engineer, Dec 2013

Measuring National Progress

100


Green Finance to meet Demand

Source: TEDxCibeles, youtube “The Challenges of the future towards a green economy” by Juan Verde Samer Zawaydeh, Independent Engineer, Dec 2013

Dynamic Green Growth Stakeholders Public

Training Centers

Sector

Supplier s

Regulators

Developers

(ERC)

Customs & Taxes Departments

NGOs

Policy Makers

Testing Facilities

Stakeholders

Jordan National Building Codes

Contractors

Conferences

Media

Exhibitions

Universi ties

Financial Institutes

Electricity Generation Transmission Distribution


4-5% 40,000 Worker in Green Economy

Jordan’s Regulatory Environment Conductive to operating a Energy business National Energy Efficiency Action Plan Jordan Renewable Energy and Energy Efficiency Law 13 for year 2012

Regulation No. 73 year 2012 per Clause 18 of RE and EE Law 13 year 2012

Regulation No. 10 year 2013 - Issued per Paragraph (b) of Clause (11) of REEEL 13 year 2012-

Wheeling Instruction per Electricity Law (64) year 2002, article 7B3, 9B

Electricity Regulatory Commission (ERC) Regulations

National Plan for Electricity Company Losses Samer Zawaydeh, Independent Engineer, Dec 2013

Energy Codes

JISM Energy Specs

-

+

Solar Code 2012

Energy Labels

How are we Meeting the Challenge Awareness

Awareness and Training Jobs Adopt Best Practices Jobs Environmental Engineers Jobs Solar Energy Experts Jobs Efficient Buildings Jobs Efficient Transportation Energy Conservation Jobs Adopt Renewable Energy Waste Management Jobs

Education

Water Management Jobs Resource Monitoring Jobs Adaptation / Mitigation Policies Jobs


Faster – Smarter Solutions Wind

Solar Water Heaters

Solar PV

Geothermal

Waste Management

Energy Efficiency

Waste to Energy

Energy Efficient Behavior

Passive Design

Clean technology

Building Code Compliance

Building Energy Modeling

Increasing Energy Prices

CO2 Emissions Increase

Less Precipitation

Temperature Increase 2°C

Population + Demand Growth


Jordan- Adapt Locally, Lead Regionally 200M Water Networks Renovation Projects Waste Water Networks Renovation Projects 400M Energy EE/RE Projects 50M Growth in High Caliber Trained Professionals & Waste Projects 50M Companies Leading Projects in the Region Wind Projects 210M Electric Grid Upgrade Projects 50M Solar Projects Water Projects

300M

100M

Source: Estimates by Presenter Samer Zawaydeh, Independent Engineer, Dec 2013

Jordan - Turning Ideas into Action Solar Energy into Electricity Yingli Trina Philadelphia Solar Solar World Petra Solar Suntech Anpro Mecasolar Thinfilm ET Solar Others

15MW Installed &In-Progress 200 Million JD (2013 estimate) Source: Estimates by Presenter


Strong Green Market Drivers • • • • •

Establishment of Laws and Regulation Strong availability of PV & SWH Suppliers Strong Training of Professionals Renewable Energy Expression of Interest Implementing Customs and Tax Exemption

Current Market Barriers • • • • •

Weak Energy Awareness among consumers Lack of implementation of Energy Codes / Auditing Poor Efficient Transportation Solutions Lack of Benchmarking / Bylaws Implementation Slow micro funding for Energy Projects Samer Zawaydeh, Independent Engineer, Dec 2013

Green Jobs in Jordan Status and estimated by 2020 Sector

No of No of Percentage Workers* Green Jobs Green Jobs Public 306,140* 33,218** 10.8% Private 671,573* 35,000** 5.2% Total Current 977,713 68,218 6.9% Estimated Additional 52,000*** Jobs by 2020

Estimated by 2020

120,218

*According to the DOS report (http://www.dos.gov.jo/dos_home_a/main/cd_yb2011/pdf/work.pdf) ** Estimated according to the author’s research as of 2013. ***Presentation by Ministry of Environment at H2020, April 2013 Samer Zawaydeh, Independent Engineer, Dec 2013

12.3%

Jordan Banking Sector Annual Electricity Consumption (1066*GWH) Costs

Year Millions Source: Prepared by Presenter Samer Zawaydeh, Independent Engineer, Dec 2013

Jordan Banking Sector Electricity Tariff (2013-2017)

Year JD/kwh Samer Zawaydeh, Independent Engineer, Dec 2013

Jordan Banking Sector Cost of Increase Electricity Tariff (2013-2017)

Source: Prepared by Presenter Samer Zawaydeh, Independent Engineer, Dec 2013

Sources of Green Finance Amman Cairo Bank

Capital Bank

Ahli Bank

Investment Bank

Amman Chamber of Industry

European Investment Bank

Jordan Engineers Association

Jordan River Foundation

European Bank for Reconstruction and Development (EBRD)

World Bank

KFW

Scientific Research Fund

JEDCO

USAID

Gulf Countries Loans/Grants

Central Bank of Jordan

Clean Tech V/Cs

Private

Europe Aid program of the EC

Customs and Tax Exemptions

GIZ

UNEP

Netherlands Embassy

JICA

Investment

UK Embassy


Project Opportunities Energy Conservation, Efficiency and Renewable Projects with immediate Access to Finance at 722 Banks Branches Jordan Banks - Branches Inside Jordan 120

100

110

80

77 60

69 67 64

40

51 44 36

20

30 28 27 16 13 13 12 12 11

9

9

0


6

4

4

3

3

2

2

Example – Local Project International Financing Institutions & Banks 1. IFC International Finance Corporation 2. European Investment Bank 3. Eksport Kredit Fonden 4. OPEC Fund for International Development 5. FMO (Dutch development bank) 6. Europe Arab Bank 7. Capital Bank of Jordan

Source: http://renews.biz/55014/cashclinched-for-jordan-wind/

http://www.petra.gov.jo/Public_News/Nws_News Details.aspx?Site_Id=1&lang=2&NewsID=131554& CatID=13&Type=Home>ype=1 Note: (Nov2013 Announcement in Media)


Example – Local Project Local Finance Arab Bank (12.6M JD)

Arab Bank buildings in alignment with the internationally recognized BREEAM assessment method Source: http://www.arabbank.com/uploads/File/SustainabilityReport2012_English.pdf Samer Zawaydeh, Independent Engineer, Dec 2013

Step 1: Education Wind and Solar Capacity Building

Source: http://www.wecsp.org.jo/about Samer Zawaydeh, Independent Engineer, Dec 2013

Turning Ideas Into Action Jordan USA MEMR 65-75MW Solar

http://www.theatlantic.com/technology/archive/2013/11/solar-energywas-americas-sole-new-power-source-in-october/281867/ Source: http://www.memr.gov.jo/LinkClick.aspx?fileticket=z x5lTMFKZYU%3d&tabid=36


Small Green Loans/Grants Entity

30 Million JD

Description/ Estimate JD (Reports /Word of Mouth)

JEDCO

Grants (1.2M)

Jordan River Foundation

5000+ Solar Water Heaters at CBOs

Mercy Corps

75 systems (1KW each), Solar Water Heaters

Chamber of Commerce

Grants (250K Budget, 100K completed projects)

Ahli Bank

Go Green Loan (up to 40k, 5 years)

Amman Cairo Bank

Solar Water Heaters (Deduction from Salary)

Arab Bank

Sustainable Development (12.6M)

Capital Bank

Renewable Energy Projects (5M)

Tamkeen

Loans (5M)

UK Embassy

Direct Efficiency and Renewable Energy Sponsorship

USAID

Training, Education, Renovation, Clean Tech, Utilities

GIZ

Energy Efficiency, Water, Waste water

Japanese

Renewable Energy Pilot Project

Source: Prepared by Presenter


Summary Estimate Green Large Investments Description

Source of Finance

1500 Million JD Estimates Green Amount (Million JD)

Wind Project (117MW)

International Banks

200

Solar Projects

227MW – various sources

400

Construction Projects Renovation

USAID - Construction

40

Jordan Energy Sector Capacity Building

USAID – Energy

40

Jordan Competitiveness Program

USAID – Clean Tech

40

Millennium Challenge Corporation

USAID – Water

270

Aqaba LNG Terminal

Kuwait Fund

50

Energy Water and Social

Gulf Countries ($1327M)

400

Wind and Solar Capacity Building

Europe Aid program

10

Solar and Efficiency Projects

EU

50

Source: Prepared by Presenter


Required Improvement How Jordan and Neighboring Economies Rank on the ease of getting Credit


Culture Prepared for Change – Green Growth Statement delivered on behalf of His Majesty King Abdullah II bin Al Hussein The Hashemite Kingdom of Jordan By Dr. Jafar Hassan Minister of Planning and International Cooperation The United Nations Conference on Sustainable Development (Rio+20) , Rio De Janeiro, Brazil, June 20th 2012

• “Innovative financial and technical resources are needed to help implement national green development plans and develop green industry. Such 'green finance‘ can set the right value, incentives and revenues in various key sectors in addition to directing debt-swap arrangements for integrated green-growth programs in energy, water and environment. “ Samer Zawaydeh, Independent Engineer, Dec 2013

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Thank you Questions ? Status of Green Finance in Jordan Presented by Eng. Samer Zawaydeh, PMP, CRM, REP, AEE Life Member Email: [email protected], Mobile: +962.78.839.9453

at USAID Jordan Water Reuse and Environmental Conservation Project Green Finance Conference Royal Scientific Society December 10, 2013 , Amman, Jordan