Jordan Municipal Climate Finance Ecosystem Framework (JMCFEF): Integrating Carbon Taxation, Carbon Markets, and Municipal Climate Finance in Jordan: Towards a Municipal Climate Finance Ecosystem Framework

Jordanian municipalities face increasing financial pressures resulting from climate change, infrastructure investment needs, rising energy costs, and limited fiscal resources. Although international climate finance continues to expand, municipalities often encounter barriers in accessing these resources due to limited institutional capacity, fragmented financing approaches, and the relatively small scale of individual projects. This paper introduces the Jordan Municipal Climate Finance Ecosystem Framework (JMCFEF), an original conceptual framework designed to strengthen municipal climate finance in Jordan by integrating climate finance, project aggregation, carbon markets, environmental attribute markets, green bonds, renewable energy certificates (I-RECs), future carbon taxation opportunities, and revenue recycling mechanisms into a unified municipal climate finance ecosystem. The proposed framework presents a Climate Finance Aggregation Platform capable of consolidating municipal climate projects into investable portfolios, mobilizing domestic and international climate finance, and recycling climate-related revenues into future investments through a Municipal Climate Finance Facility. The framework also highlights the potential role of the Jordan National Green Taxonomy in supporting the identification, classification, and prioritization of eligible green investments. The paper provides policymakers, municipalities, financial institutions, development partners, and climate finance practitioners with a practical conceptual foundation for expanding municipal access to climate finance, strengthening local climate resilience, and supporting Jordan's climate and sustainable development objectives. Although conceptual in nature, the framework offers a basis for future policy dialogue, institutional development, pilot implementation, and further research on municipal climate finance ecosystems.