The Green Climate Fund (GCF), the world’s largest multilateral climate financing body, has approved its biggest-ever investment a $295 million package to support Jordan’s $6 billion Aqaba-Amman Water Desalination and Conveyance Project.
The initiative, led by French firms Meridiam and SUEZ, aims to address Jordan’s acute water crisis by desalinating Red Sea water in Aqaba and piping it to Amman, serving nearly half the country’s population.
Jordan, one of the world’s most water-scarce nations, faces worsening shortages as climate change threatens to raise temperatures by 4°C and cut rainfall by over 20% by century’s end.
Why It Matters
The project is among the world’s largest desalination ventures and represents a landmark in climate finance. It underscores the growing urgency for global funds to back large-scale adaptation projects, especially in the Middle East a region facing rising heat, population growth, and water insecurity.
By anchoring the project financially, the GCF hopes to attract billions more from international partners, including the International Finance Corporation (IFC), private lenders, and donor countries.
“This will transform the country,” said GCF executive director Mafalda Duarte, calling it the fund’s “highest investment in a single project.”
The United States has already pledged $300 million in grants and $1 billion in loans, while other regional allies are expected to contribute, reflecting Jordan’s strategic role in Middle Eastern stability.
Jordan’s Water Minister Raed Abu Soud described the project as “strategic,” saying it would deliver 300 million cubic meters of clean water annually to much of the kingdom.
A senior official told Reuters the GCF’s involvement will cut water costs by about 10 cents per litre and save the government $1 billion over the project’s lifespan, while also improving loan terms through the IFC.
At the GCF board meeting in South Korea, 24 projects worth a total of $1.4 billion were up for approval the fund’s largest single disbursement round to date.
Duarte noted that the fund was “speeding up decision-making” as part of a broader global push to reform climate finance and better mobilize private investment.
What’s Next
Construction on the Aqaba-Amman project is expected to accelerate in 2026, with completion targeted by the early 2030s. Once operational, it will be a lifeline for Jordan’s population and a test case for climate adaptation financing in arid regions.
The GCF’s commitment also sets the tone ahead of the COP30 climate summit in Brazil next month, where reforming global climate finance including expanding support for water security will be a central focus.
With information from an exclusive Reuters report.
