Ministry of Environment

Green Jobs Assessment of Six

Economic Sectors in Jordan
Synthesis Report
Exploring Current and Potential Employment of Green Activities

Implemented by In cooperation with

 Green Jobs Assessment
of Six Economic Sectors in Jordan
Synthesis Report
Published by the
Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH

Registered offices
Bonn and Eschborn, Germany

Green Action in Enterprises (GAIN) Project

GIZ Jordan
Mohamed Baseem Al-Khammash St. 13, Sweifeh
Amman 11190
Phone +962-6-5868090
Fax +962-6-5819863
giz-jordanien@giz.de
www.giz.de/en/worldwide/102349.html

As at
June 2023

Design
MagicLine

Photo credits
GIZ GmbH

Text
Dr. Cornelia-Madalina Suta, Stijn Van Hummelen, Alistair Smith, Robin Lechtenfeld (Cambridge Econometrics)
Prof. Dr. Nooh Al Sheyab, Prof. Dr. Serena Sandri

On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ).
Dear esteemed reader,
It fills me with joy to present to you Jordan’s first ever The process of developing the G-JAR required contri-
Green Jobs Assessment Report (G-JAR) as part of butions from various section of society and national
the national efforts led by the Ministry of Environment consultations meetings among private and public
towards transition to green economy. sectors, academia, civil society, international institu-
tions, and experts. It produced valuable policy
This report has been designed to act as a knowledge implications to support effective greening of our
product and a tool for informed policymaking for all national developmental priorities which will result in
our partners from the public and private sector, green employment generation in promising sectors.
academic institutions, civil society, local communi-
ties, and the media that wish to learn more about the Based on a participatory approach which the
promising potential of creating additional employ- Ministry of Environment always adopts during green
ment in Jordan by implementing green policies and growth planning, policy and action development,
sustainable economic activities. and implementation, the Ministry looks forward for a
continuous and real engagement of line ministries
This report’s completion marks a first cornerstone in developing the proper policies towards creating
a promising journey Jordan is embarking on. As the green jobs in line with EMV objectives.
Ministry of Environment is spearheading the Green
Jordan Driver under the national Economic Moderni- Finally, I would like to thank all experts who are part
zation Vision (EMV) 2030, we seek to ensure that of this effort for their indispensable contributions and
future economic growth is both socially inclusive and extend my gratitude to the Government of Germany
environmentally friendly. The generation of green for having supported this report through the
employment, meanwhile, will be an outcome of this GIZ-implemented “Green Action in Enterprises”
and has been a designated goal of this government (GAIN) project.
and aligned with the strategic objectives of the EMV
in creating more employment opportunities. As we navigate through numerous ecological and
economic challenges, it is pivotal to act in the right
I therefore like to view the G-JAR as a conversation direction in alignment with our international commit-
starter that should inspire us, as decision-makers in ments and national priorities. This G-JAR report
the public and private sphere, to work jointly towards represents one key quantitative piece of evidence for
the promotion of meaningful green jobs. It provides a us to feel emboldened and work towards the green
clear definition and an initial assessment of existing economy transition.
and potential green jobs in selected economic
sectors, which are in line with our national priorities
expressed in the EMV and in the National Green
Dr. Muawieh Khalid Radaideh
Growth Action Plan (2021-2025).
Minister of Environment
Acknowledgements
Supervision
Ministry of Environment
Ministry of Industry, Trade and Supply
Ministry of Labor
Prime Minister’s Office

Technical Oversight and Guidance

Mr. Marek Harsdorff, Green Jobs Programme,
International Labour Organization

Ministry of Agriculture
Ministry of Energy and Mineral Resources
Ministry of Tourism and Antiquities
Ministry of Transport
Ministry of Water and Irrigation

We are most grateful to the Department of Statistics for facilitating access to the data. We are equally grateful
to the various experts and institutions (listed in alphabetical order below) that provided us with insights and
assumptions which have greatly informed this report’s analysis.

Amman Chamber of Industry

EDAMA
Greater Amman Municipality
Jordan Chamber of Industry
Jordan Farmers Union
Jordan Garments, Accessories & Textiles Exporter’s Association
Jordan Hotels Association
Jordan Renewable Energy and Energy Efficiency Fund
Jordanian Energy and Minerals Regulatory Commission
Jordanian-German Energy Partnership
National Agricultural Research Center
National Electric Power Company
Royal Scientific Society
Royal Society for the Conservation of Nature
Taybeh Organic Farms

Abdalla Hijjawi Mohammad Daoud

Ahmad Hijazi Dr Mohammad Naser
Ahmad Malkawi Montaser Abdal Salam,
Ala’a Mahmoud Abu Khazneh Mousa Jaber
Ammar Abu Drais Muayyad Elbado
Amina Mari Musab Tayseer Al-Hour
Dr. Arwa Abdelhaj Nabil Tarazi
Burcu Tuncer Dr. Qasem Abdelal
Hamzeh Abu-Ras Prof. Rana Imam
Hazem Zuraigat Rateb Al Zubaidi
H.E. Khaldoun Khashman Reema Al Shobaki
Khaldoun Zomot Ryad Al Kharabsheh
Mahmoud Abdel-Ghader Tamimi Sajida Al Nsour
Mahmoud Alees Shifaa Khatatbeh
Contents
1 Background 10
2 Methodology 12
3 Current green jobs in selected economic sectors 16
4 Potential for green jobs 20
5 Policy implications 28
6 Conclusions 34

Tables
Table 3.1: Estimated current green jobs in selected sectors 17

Figures
Figureure 2.1: Methodological framework 13

References 35
 Jordan
Green - Green Jobs Assessment Report
Jobs Assessment
of Six Economic Sectors in Jordan

Abbreviations
EMV Economic Modernization Vision
GHG Greenhouse gas
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH
ICE Internal combustion engine
ILO International Labour Organization
I-O Input-Output
NDC Nationally determined contribution
NRW Non-Revenue Water
PSF Polyester staple fibres
PET Polyethylene terephthalate

7
1 Background
 Green
JordanJobs Assessment
- Green Jobs Assessment Report
of Six Economic Sectors in Jordan

1 Background
Efforts to identify and facilitate the transition towards a green economy are intensifying in
Jordan. The Government of Jordan is currently supporting various policies, initiatives, and
Jordan’s
programmes aimed at achieving a green economy. First and foremost is the recently adopted
transition to
Economic Modernization Vision 2033 (EMV) which aims to accelerate sustainable economic a green
growth. The adoption of the ’Renewable Energy and Energy Efficiency Law of 2012’ (Jordan economy
Government, 2012) and the ‘Waste Management Framework Law for the year 2020’ (Jordan
Government, 2020) or the National Green Growth Plan (2021 – 2025)1 are other key examples.
Furthermore, Jordan submitted its first Nationally Determined Contribution (NDC) in 2016 and
an updated version in 2021 which encompasses a goal to reduce greenhouse gas (GHG)
emissions by 31% in 2030 compared to a ‘Business As Usual’ scenario (Ministry of Environ-
ment, 2021).

Unemployment, particularly among young people holding qualifications of at least Bachelors, is

a persistent issue in Jordan and the creation of green jobs is high on the policy agenda. With the
Green jobs as
Ministry of Labour’s latest strategy, the National Employment Plan, the government aims to
a solution for high
support sustainable job creation and has set itself an ambitious goal of 10% of jobs being green unemployment
jobs by 2030.

For a first ever assessment of current and potential green jobs in Jordan, the “Green Action in
Enterprises” (GAIN) project, commissioned by the German Federal Ministry for Economic Coop-
Jordan’s
eration and Development and implemented by the Deutsche Gesellschaft für Internationale transition
Zusammenarbeit (GIZ) GmbH, cooperated with Cambridge Econometrics using the Interna- to a green
tional Labour Organization (ILO) GAIN methodology (Jarvis, Varma and Ram, 2011). This economy
produced report depicts the Kingdom’s first ever green jobs assessment and aims to:

• estimate the current levels of green jobs (direct, indirect and induced) in six selected
economic sectors, and
• showcase the potential for green jobs based on the results of “what if” scenarios (i.e.
employment effects from investing in a given green economy activity) using econometric
modelling. Jordan’s
Jordan has
transition
considerable
to a green
This assessment reveals that Jordan has considerable potential of green jobs, in the six selected potential
economy for
economic sectors, namely the agriculture, transport, water and waste, manufacturing, tourism, green jobs
and energy sectors.

1
Reports — Global Green Growth Institute (gggi.org)

10
2 Methodology
 Green Jobs Assessment
Jordan - Green Jobs
of Six Economic Assessment
Sectors in JordanReport

2 Methodology
There is no standard definition of green jobs. According to the ILO, green jobs can be found in
many sectors of the economy, covering work in agricultural, manufacturing, research and devel- What are
opment, administrative and service activities, and are linked to economic activities within green jobs?
sectors that “help preserve or restore the environment by:

• Improving energy and raw materials efficiency

• Limiting greenhouse gas emissions
• Minimising waste and pollution
• Protecting and restoring ecosystems
• Supporting adaptation to the effects of climate change.”(ILO, 2016)

To assess the number of green jobs, it is therefore important to first identify those green
economic activities within sectors, and then the number of jobs associated with them. Green
activities within a sector are generally identified using one of three methods:

1 the process-based method,

2 the output-based method, and
3 the natural resource conservation method.

The process‐based method defines green activities as those whose production processes
involves lower energy and resource intensity, lower need for virgin inputs and/or using recycled
inputs, and/or lower generation of waste. In other words, the product is not necessarily helping
to preserve or restore the environment, but the production process is organised with minimal
impact on the environment and innovations are actively introduced to eliminate this impact.

The output‐based method refers to the environmentally beneficial characteristics of final

products or services in the sector. Examples of environmentally friendly products or services
include: organic agricultural products (certified), green textiles (green labelling), eco-tourism
(certified), green construction (certified) and green financing.

The natural resource conservation method examines activities that directly contribute to nature
conservation. Examples of such activities include ecosystem support and natural resource
management.

The ILO further emphases that green jobs should be decent. This means that a green job is
sustainable from an environmental perspective, and inclusive and equitable from a social
perspective, by offering fair wages and social security. In the absence of reliable information, in
this report only those employees with a formal employment contract are considered being in
decent jobs without considering other aspects such as wages, working conditions etc. As a
result, informal jobs, even if they help preserve or restore the environment are not considered to
be green jobs.

12
 Green Jobs Assessment
of Six Economic Sectors in Jordan

The assessment carried out for this study follows the ILO GAIN methodology for green jobs
What are the
assessments. This is an established methodology and has been used in several countries around
steps of this
Green Jobs the world2.
Assessment?
Figure 2.1: Methodological framework

Steering Committee

Profiles of six economic Identify green activities Estimate direct, indirect,

sectors witrhin those six economic and induced green
sectors employment

Run ‘what-if’ Scnarios

based on specific green Identify if and to what Develop policy implicati-
economy investments extend Jordan has green ons for green jobs promo-
within those six economic jops potential in those tion in jordan
sectors six economic sectors

IIn the first step, a governmental steering committee was established consisting of the Ministry
of Environment, the Ministry of Industry, Trade and Supply, the Ministry of Labour, and the
Prime Ministry. Based on the availability of data and government priorities, the committee chose
for the assessment six economic sectors, namely agriculture, transport, water and waste, manu-
facturing, tourism, and energy, within the Jordanian economy. The second step entailed a more
detailed assessment to identify existing green activities within those sectors. In step three,
current direct employment associated with green activities identified in the previous step were
estimated, based on official employment data and various assumptions. Current indirect and
induced effects associated with the green activities were estimated, too, using Input-Output
(I-O) tables.

Step five is then forward-looking. Potential green economy investments within the six selected
sectors were identified to showcase the extent to which Jordan holds green jobs potential.
Those green economy investments were chosen based on the availability of necessary data and
whether they could help Jordan achieve its EMV. Using a macroeconomic model, the future
employment impact of these investments is then assessed through the simulation of ‘what-if’
scenarios. Finally, based on the results from the modelling and expert views, policy implications
are formulated in step six.

Direct jobs are those jobs directly linked to the generation of economic output within a green
What are direct,
activity in a given sector. Indirect employment impacts relate to supply chain effects of green
indirect, and
induced activities, and the jobs generated in other sectors by these green activities. Each green activity
employment? has linkages with other sectors through its supply chains. Induced jobs refer to the jobs associ-
ated with changes in output as a result of changing prices and household incomes, which lead
to further expenditure.

2
See list of reports at: https://www.ilo.org/global/topics/green-jobs/areas-of-work/gain/reports/lang--en/index.htm

13
 Green Jobs Assessment
of Six Economic Sectors in Jordan

Only direct jobs are considered green, but to estimate the economy-wide employment potential
from an investment or policy, it is important to also account for indirect and induced employ-
ment.

This analysis uses the FRAMES model. FRAMES is a single-country macroeconometric model
designed to examine economy-wide socioeconomic and environmental effects of changes in
Which
investment and/or policy. FRAMES can be considered a simplified version of the global dynamic macroeconomic
The E3ME model is a global, macro-econometric model designed to address major economic model has been
and economy-environment policy challenges; E3ME simulates a demand-led economy with used?
supply constraints based on time series econometrics. FRAMES does not include the supply
constraints that are included in E3ME. E3ME and FRAMES are simulation tools, well-suited for
comparing a baseline (business-as-usual) projection with outcomes of alternative scenarios.

For this study, a baseline (business-as-usual) projection was first derived. In the baseline, annual
growth of the Jordanian economy of 2.7% pa to 2024 and 3% pa from 2025 to 2030 is
assumed, in line with the IMF’s most recent economic outlook for Jordan (IMF, 2023). In the
absence of public sectoral forecasts, each sector of the economy is expected to grow in line
with GDP.

‘What if’ scenarios show alternative pathways relative to the baseline, identifying which sectors
gain or lose from investing, whether by the adoption of or substitution with new technology, What are
and/or substitution of inputs. The term used throughout this report is ‘What-if scenarios’ a baseline
because they are not forecasts of the most likely future outcomes, but simulations of what could and ‘what-if’
happen if a certain promising green economy investment takes place. scenarios?

The analysis incorporates various assumptions and estimates the direct, indirect, and induced
employment impacts by 2030 of the chosen potential green economy investments beyond the
expected baseline growth. The results of the what-if scenarios are thus presented as additional
to the baseline scenario. Already in the baseline, there is employment growth over time, but the
aim of the scenarios is to assess whether a specific green economy investment would lead to
higher or lower employment compared to the business-as-usual investment and other
economic patterns reflected by the baseline.

Positive externalities on the environment are not captured in the modelling of the scenarios.

There is no single unique source of data on green activities in Jordan, which presents a
challenge for the estimation of green jobs. Data have been collected through desk research and
What are
comprehensive stakeholder engagement. The 2016 I-O table, an essential piece of data for the the main data
analysis, as well as most of the other secondary data (e.g. labour force and employment data) sources?
was acquired from the Department of Statistics. Other secondary data sources include the IMF,
the World Bank and the GIZ.

14
3 Current green jobs
in selected economic
sectors
 Green Jobs Assessment
of Six Economic Sectors in Jordan

3 Current green jobs in selected

economic sectors
The assessment on current green jobs focuses on the six selected economic sectors, namely
agriculture, waste and water, manufacturing, energy, tourism, and transport. Each sector was
Estimation of
disaggregated into a sustainable component and a conventional component by identifying current green jobs
green activities with environmentally friendly processes (i.e. applying the process-based in six selected
method) or environmentally friendly products (i.e. by the output-based method). Given the economic
nature of the conservation method, this was used only for the tourism sector for employment in sectors
natural reserves. The estimation method differs from activity to activity and, given the data
limitations, green jobs can be considered as having different shades of green depending on the
sustainability criteria (e.g. process, output, nature conservation) considered.

Between 24% and 31% of the employment in the selected sectors and subsectors can be
considered as green. Table 3.1 presents the summary of the estimated number of green jobs
by sector/subsector and the method used to estimate them. In some cases, a range of
estimates are provided, owing to data limitations and uncertainty.

In the agricultural sector, the identified green activities are organic farming, drip-irrigation and
hydro-/aquaponics. Around 10,000 permanent workers in agriculture are assumed to work in
these green activities.

The generation of energy using solar PV, wind, hydropower, and biomass is a green activity. At
least half of the employment in the energy sector is assumed to be linked with this type of
energy generation and thus deemed green. Around 1,600 green jobs are in activities such as
retrofitting old buildings to make them energy efficient, building efficient new buildings and
increasing industry efficiency.

In the manufacturing sector, green activities were identified in sub-sectors where production
processes are either reducing energy and resource intensity, more eco-efficient, or reducing
and recycling waste. Around 8,000 green jobs are in facilities that use either recycled plastic or
recycled paper as raw material. Over 700 green jobs can be found in food-processing, textile or
pharmaceutical/ chemicals companies that hold an environmental-related certification.

Collection of waste and water-treatment are green activities with over 8,000 green jobs.

Green jobs in green hotels and eco-tourism represent more than a third of jobs in the tourism
sector. Public or shared transport of people are also greener options than individual transporta-
tion. As much as a third of employment in transport is estimated to be green.

16
 Green Jobs Assessment
of Six Economic Sectors in Jordan

Table 3.1: Estimated current green jobs in selected sectors

Of which are green jobs

Current
Sector (activity) employment Number Share of
employment (%)
Agriculture (crop production) 18,349 10,145 - 10,163 55
Energy 9,435 4,750 50
Energy efficiency* 1,686 1,686
Manufacturing-Clean technology* 1,178 1,178
Manufacturing-Food processing 59,646 61 0
Manufacturing-Packaging 11,875 4,160 35
Manufacturing-Pharma and Chemicals 26,655 592 2
Manufacturing-Plastic 11,875 3,713 31
Manufacturing-Textile 68,489 66 0
Tourism 12,418 3,166 - 5,416 25 - 44
Transport (land and railways) 81,031 30,920 - 63,500 38 – 78
Waste* 6,300 6,300
Water* 7,966 1,957

Total 316,903 68,781 – 103,542 22 - 33

Note(s): For the sectors with *, current employment is unknown, so green jobs estimation is
used to assume employment levels.
Source(s): Cambridge Econometrics estimation on a variety of sources.

Figure 3.1 shows the number of green jobs and total employment in the sub-sectors with green
activities. The estimation is the between 69,000 and 104,000 jobs are currently green, i.e.
between 2.9 - 4.3% of total employment. A range is provided rather than one precise figure
because of data limitations and uncertainty.

The share of green jobs in total employment in Jordan is similar to results found in other
In global
countries’ green jobs assessments. For example, the share of green jobs in Mauritius is 6%
comparison
(Sultan and Harsdorff, 2014), 4.5% in Mexico (ILO, 2014), and between 1% and 5% in Bangla-
desh (GHK, 2010). These results should only be considered as a reference, because the
economic structure differs between countries.

17
 Green Jobs Assessment
of Six Economic Sectors in Jordan

Figure 3.1: Summary of the green jobs in selected green activities

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Current employment Green Jobs

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Source(s): Cambridge Econometrics estimation using official sources and stakeholders’

interviews

On the one hand, the numbers of green jobs are likely underestimated for two reasons:

• The analysis has looked at those 6 sectors known to have considerable potential for green
A few caveats
economic activities. It may be that there are green jobs in other sectors not considered in
this analysis (i.e. construction, services).

• Considering the openness of the Jordanian manufacturing sector, and that more exporting
companies are implementing environmentally friendly processes to comply with destination
country requirements than the number assumed here.

On the other hand, these numbers may be subject to at least some overestimation since many
formal jobs do not fully comply with the ‘decent’ aspect of the ILO green jobs definition.

18
4 Potential for
green jobs
 Green Jobs Assessment
of Six Economic Sectors in Jordan

4 Potential for green jobs

Jordan’s EMV fosters the ambition of Jordan “to be a low-carbon, resource efficient and socially
inclusive nation that serves as a regional hub for green entrepreneurship and innovation” Does Jordan
(Jordan Government, 2022). It targets the creation of one million jobs by 2033, activating eight hold potential for
green jobs creation
main drivers of growth in 35 sectors, via a broad portfolio of 366 initiatives.
in the future?

The ILO Global Employment for Youth 2022 report (ILO, 2022) shows that the path to net zero
would bring a 3% increase in employment in the Arab States region by 2030, compared to a
business-as-usual pathway. Jordan is expected at a minimum to experience in a similar growth
in employment if the measures in the NDCs would be implemented, according to the ILO.

In order to underline the potential for Jordan to create green jobs by investing into green
economy, six specific initiatives within the chosen economic sectors were selected for scenario
analysis:

1 recycled plastic

2 recycled textile

3 resource efficiency in the food-processing sector

4 sustainable value extraction of sludge

5 water scarcity

6 green public transport

The selection by the steering committee was made at the beginning of March 2023 and based
Yes, Jordan’s
primarily on two criteria: i) the availability of detailed information on the expected pathway (data economy is able to
from feasibility studies or government sources), ii) and relevance to the Economic Modernization create additional
Vision 2033. green jobs from
green economy
In May 2023, the assumptions used for the modelling and the initial set of results were investments
discussed with national experts in the field and amendments were made based on the feedback
received.

In a business-as-usual scenario (no further green investment), the total employment in Jordan
would grow with 127,000 jobs, while the number green jobs could grow with around 5,500 jobs.
If the green initiatives considered in this study were implemented, the number of green jobs in
the economy could grow with 113,000 jobs.

20
 Green Jobs Assessment
of Six Economic Sectors in Jordan

4.1. Recycled plastic

The aim of this scenario is to measure the impact of an increase in the reuse of plastic waste i.e.
Increasing PET to
material recycling in manufacturing. There is currently no large facility for polyethylene terephtha-
polyester staple late (PET) plastic recycling in Jordan and this scenario focuses on the development of recycling
fibres (PSF) for post-consumption PET plastic in the country.
recycling
The assumptions made in the scenario are partly based on the Feasibility Study for Establishing
Polyethylene Terephthalate Recycling Facility in the Jordan Valley (Hijjawi, 2021). Assumptions
were discussed and – where needed – updated based on experts’ feedback to the preliminary
results during a workshop held on 15 May.

Based on the economic modelling, the impact of the investment and operations cost for imple-
menting PET recycling by 2030 are as follows: The impact of the investment to build the facility
is assumed to be in 2023, though this may be proved infeasible in practice, with just half the
year to go. It is assumed that the facility will produce at 70% of its capacity in 2024, 90% in 2025
and 100% in 2026. The capacity of the facility will from that point be 6,000 tons of PSF produc-
tion per annum. In the modelling, it is assumed that the new recycling facility can operate
competitively and displace current and forecasted imports of PSF.

The indirect and induced effects are observed largely in construction during the initial phase. In
the operational phase (2026-30), the benefits of increased output of the plastic sector are
observed in supply chain effects (such as manufacture of chemicals, transport, and wholesale
trade).

4.2 Recycled textile

The aim of this scenario is to measure the impact of an increase in the quantity of fabric waste
recycled and used as input material in manufacturing.
Increasing fabric
recycling and reuse The assumptions are based on a series of circular economy business cases in the ready-made
garment (RMG) sector developed by the GIZ-implemented GAIN project. Two types of recycling
are assumed to take place in the textile and waste sectors under this scenario: i) mechanical
recycling for industry symbiosis (waste to felt), ii) and mechanical recycling for fibre-to-fibre yarn
production. It is assumed first that a sorting facility in the waste sector is built over 2023-24, and
that from 2025, 25 tons of textile waste per day are processed into felt. The fine sorted waste is
sold for felt fluff production (to the construction and furniture sectors), and for yarn production
(to the textile sector).

21
 Green Jobs Assessment
of Six Economic Sectors in Jordan

The economic modelling shows the employment impact of adopting circularity in the textile
sectors, which would also green the entire sector identified by the process-based method. By
2030, the modelling calculates 249 expected new jobs in the textile sector from increased
recycling capacity at the scale assumed. Most of the additional jobs are driven by the
production of extra output (i.e. recycled yarn) which, in turn, leads to the generation of more
output by the entire textile industry (benefiting from domestic raw materials).

These changes in the production process will lead to changes in the demand and supply from
other sectors, such as waste collection, and therefore have positive indirect and induced effects
leading to even further employment gains.

Indirect effects are expected through the supply chains of the textile and waste sectors. The
increase in energy demand will also lead to a small increase in employment in the electricity
sector. Induced effects in service sectors from increased domestic income are also accounted for.

4.3 Resource efficiency in food-processing

The aim of this scenario is to estimate the impact of implementing resource efficiency measures
in food processing in 60% of medium and large companies in the sector.
Improving
resource efficiency
High energy bills for production are one of the main challenges confronting Jordan's industrial in food processing
sector. The assumptions in the scenario are based on the investment and cost savings reported
in a number of collected audits, particularly those undergone by manufacturers as part of their
engagement with the GIZ-implemented GAIN project.

The economic modelling shows the employment impact of the investment and operations costs
of implementing resource efficiency measures in the food-processing sector by 2030. The
impact of the investment in technology is captured in the figures for 2023. A reduction in costs
for electricity and water from 2024 onwards is assumed.

It is assumed that the 60% of medium and large-sized manufacturers invest to become energy
and water efficient from 2024 onwards. By introducing these efficiency measures, all the jobs in
these companies (from the baseline) become green. In addition to these green jobs, 44
additional jobs could be added to the sector from higher output driven by cost savings.

If the reduction in demand for water and electricity is not offset by demand from other sectors
(e.g. electric cars), then it could lead to a small reduction in employment in those sectors (and
their supply chains). The net aggregate employment impact is 89 jobs by 2030. The strongest
employment impacts are in the initial year in which there is an investment demand stimulus; in
2023, aggregate employment increases by 219, with 132 more jobs in construction and 37 in
manufacturing based on the modelling.

22
 Green Jobs Assessment
of Six Economic Sectors in Jordan

4.4 Sustainable value extraction of sludge

The aim of this scenario is to measure the impact of developing value addition through
Extracting economic and ecological sustainability of sludge management.
economic
and ecological An estimated 105,000 solid tonnes of dried sewage sludge were produced in 2020 with most
value of sludge
of this quantity currently dumped onsite or transported to unsanitary landfills; this is based on a
study prepared by the Water, Environment, and Energy Centre at University of Jordan. The
assumptions used in this scenario are based on the market analysis and sales channels for
sludge-based products (Alokab Consulting, 2023) and the sector expert’s feedback on the
preliminary results. It is assumed that 54,000 tonnes of sludge are sold every year by Al-Samra
wastewater treatment plant to be used as an energy carrier.

Positive externalities on the environment from greening of the water sector through the reuse of
sludge are not captured in the modelling of the scenarios. The value of this is likely to outweigh
the employment effects. Sustainable value extraction of sludge is expected to add seven green
jobs to the water sector by 2030 in addition to baseline employment. The greening of the water
and other sectors through investment is expected to bring higher employment in the short term.

Short-term jobs impacts in the economy are large because of the scale of construction activity
needed to build the facilities to dry the sludge. Construction will benefit from these effects.
Switching from diesel to sludge will also benefit eight companies from manufacture of wood,
paper and printing, manufacture of other non-metallic mineral products and manufacture of
basic metals and fabricated metal products.

Longer-term jobs impacts are lower owing to low ongoing labour requirements for operation
and longer-term efforts to recoup water sector investment costs.

4.5 Enhancing water efficiency

The aim of this scenario is to measure the impact of developing value addition through
economic and ecological sustainability of sludge management

Reducing water Here, the water sector is investing in increased efficiency of water infrastructure as well as the
scarcity production of water by desalinisation by 2030. The operational costs involved are linked to
increased electricity consumption by the water sector. Therefore, in the water sector, no change
in employment is expected. However, the investment demand increases employment
elsewhere in the economy, e.g. construction, mechanical engineering and logistics.

23
 Green Jobs Assessment
of Six Economic Sectors in Jordan

The direct impacts are very small, as the modelling does not assume higher water demand from
the rest of the economy, relative to the baseline. The modelling results suggest that over 6,000
new jobs could be added during the (short-term) construction phase of the investments in the
water sector.

The effects of higher water supply on households and the effect on the price of water are not
captured.

4.6 Greening public transport

The aim of this scenario is to measure the impact of promoting the adoption of e-mobility in the
public transport sector. The level of ambition of the scenario is to replace the current fleet of
polluting internal combustion engine (ICE) public buses with cleaner e-buses so that by 2030 Replacing diesel
they represent close to 50% of the buses used for public transport (both government and buses with
privately owned). e-buses

The economic modelling shows the employment impact from the investment and operations
costs of greening the public fleet by 2030. It is assumed that a carbon trading system for the
power sector is put in place in Jordan3 and revenues from the system are used to help the
government / local authorities purchase e-buses and chargers. Privately held buses are paid for
by the private sector.

World Bank data suggest that 5,400 buses (including large buses and minibuses) were in use
in 2020-21 and that only 24% are owned by the public sector (World Bank, 2022b). This
suggests that there are currently 0.5 buses per thousand inhabitants available in Jordan, which
is well below the target of 1.5 per thousand inhabitants by 2025 as stipulated in the ‘Green
Growth National Action Plan 2021-2025’ (Jordan Government, 2020). The growth in the
number of buses for our assessment is set to maintain the 0.5 ratio over time and grow in line
with Jordan’s population.

The switch from diesel buses and minibuses to e-buses is expected to maintain the current level
of green jobs in public transport, which was estimated to be between 30,920 and 63,5004. By Greening public
2030, the additional jobs in road transport will arise mostly through supply chain effects of the transport leads to
more employment
investment in charging and grid infrastructure.
across the economy
in net terms
The deployment of e-buses requires investment in charging infrastructure, and therefore leads
to higher employment in mechanical engineering, electronics, and construction. The highest
positive employment effects are observed in these sectors.

3
According to the World Bank, Jordan has built digital infrastructure that includes monitoring, reporting, and verification (MRV) systems
that link greenhouse gas emissions and emission reduction data to national or international registries, see (World Bank, 2022a).
4
The range of estimates is based on the data provided by the different stakeholders.

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 Green Jobs Assessment
of Six Economic Sectors in Jordan

Increased demand for electricity requires investment in electricity generation, EV charging

stations and grid reinforcements, and therefore more activity and employment in this sector.
However, because of the increased electricity demand, as well as the carbon trading system
increasing the cost of electricity generation with fossil fuels relative to electricity generated with
renewables, the price of electricity is projected to go up by a small margin, leading to small
negative effects as higher prices curb demand slightly.

On the one hand, the increase in electricity demand also increases employment in the gas
supply sector, as most electricity in Jordan is still being produced with gas, even if the share of
renewables is going to increase over time. On the other hand, the fuel switching leads to consid-
erable savings in spending on diesel, and cost savings overall. As diesel is mostly imported, this
also means a reduction of international dependencies (conversely improved energy security).

As e-buses require less maintenance and are imported, this leads to a small negative employ-
ment effect in related sectors (repair of motor vehicles, transport equipment), but these are
offset by the positive effects inside the road transport sector from increased overall demand for
transport offsetting the impacts in other sectors as well as the operational cost savings.

All effects considered, the greening of the public bus fleet leads to more employment, not less.
This is in addition to the considerable benefits of improved air quality and health from reduced
emissions. Higher benefits would be reaped if the extra electricity demand would be met by
renewable electricity generation.

25
5 Policy implications
 Green Jobs Assessment
of Six Economic Sectors in Jordan

5 Policy implications
The results of desk research, data analysis and expert consultations in the frame of the present
green jobs assessment enabled the identification of some key sectors which appear to be
particularly promising in terms of a job-rich greening of the economy. In line with the EMV, the
considered sectors are manufacturing (with specific attention on plastics, textiles, food process-
ing), water and waste, transportation, as well as energy, agriculture, and eco-tourism. The
above sectors have been selected and reconfirmed by the steering committee.

The water sector is a strategic sector for the Jordanian economy and has around 2000 green
jobs, representing around 25% of employment in the sector. In the absence of any further
targeted initiatives, the water sector is expected to grow by 5% in the period 2023-30.
Despite a good performance in terms of wastewater reuse, there is still need and potential for
improving water efficiency and quality, including the use of non-conventional water sources to
compensate for the extreme water stress in the country.

In line with the government’s plans for NRW reduction and the Aqaba-Amman desalination
plant, the what-if scenario shows that the investments will lead to additional jobs during the
construction phase (up to 2028) compared to baseline, i.e. between 6,000-8,000 new jobs per
year, alongside a modest employment increase in the water sector compared to the baseline.
Furthermore, these initiatives would also lead to a higher share of green jobs in the sector since
it would increase the supply of sustainable water supply.

The level of investment used in the what-if scenario is of around JOD 2 billion and most of the
amount is linked to building the Aqaba-Amman desalination plant. In the ‘Jordan Green Growth
National Action Plans 2021-2025: Water sector’, the Jordanian Government announced its plan
to spend between USD 173-188 million in the water sector (Jordan Government, 2020f), not
considered in the scenario analysis. Building new water treatment plants would bring additional
green jobs to the current estimation.

The manufacturing sector is the second largest in terms of output creation and employs 9%
of the labour force in Jordan. The green jobs assessment of the sector was performed only in
selected sub-sectors for which information was available about the current green practices or
initiatives. Around 10,000 green jobs were identified.

The promotion of environmentally friendly practices, energy efficiency, and the use of sustain-
able water in manufacturing are among the goals of the EMV and of the Jordanian government's
green growth strategy.

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 Green Jobs Assessment
of Six Economic Sectors in Jordan

Specifically in relation to the industrial sector, progress is to be achieved by 2025 in implement-

ing “circular economy practices in industrial activities by supporting transition to resource
efficiency and cleaner production with a focus on eco-industrial parks” (EMV). Moreover,
transparency and sustainability of supply chains are focus areas for action identified by the
government. In parallel, efforts should be invested into the availability of green skills and in foster-
ing public awareness of climate change related issues.

The current number of green jobs in this sub-sector was estimated to be around 3,700 green
jobs. In a business-as-usual scenario, the sector is expected to grow with 500 new jobs during
the period 2023-30. By 2030, the new PSF production facility using recycling PET is expected
to further increase the number of green jobs in the plastics sector from 3,700 to almost 4,400.

The main potential for green jobs based on the above modelling lies with the use of recyclable
plastics. Green jobs can already be found in the companies which are using recyclable plastic
as raw material. This assessment illustrates that investing in the recycling of PET to produce
PSF can generate additional green jobs and economic activity. PSF production is one example
- and there are other ways in which plastic waste could be recycled and reused in Jordan, likely
with similar employment effects.

Stakeholders emphasised that a more reliable and better supply of scrap and recyclable materi-
als would be crucial to ensure the availability of sufficient inputs to production to feed a growing
recycling business. The plastics sector is looking at this with growing interest. Furthermore, with
waste collection currently dominated by informal workers, these are not currently considered to
be green jobs whereas they could be, if formalised. Both to support the potential that plastic
waste recycling holds and grant decent (green) job opportunities for a growing share of individu-
als; the formalisation of waste collection would make a large contribution.

To achieve this, the government could provide incentives in the form of tax exemptions and/ or
attractive social protection schemes. Besides reducing the size of the informal economy, this
may yield a more transparent flow of recyclables and reduced environmental pollution while
generating new economic activity in the domestic economy.

A further promising green business for Jordan is recycled textiles. Green jobs can already be
found in the RMG companies which hold an environment management certification. The current
scenario analysis shows that investing in textile waste collection and recycling it into felt and
then yarn would benefit both the waste and textiles sectors. In addition to creating green jobs,
the production of felt and yarn will reduce the import dependency of Jordanian manufacturers.

Introducing circularity in the textile sector, increases the number of green jobs from around 70
in 2022 to over 72,000 in 2030. This is achieved by both greening the existing jobs and by the
creation of around 250 new green jobs (generated by the one facility that produces yarn). The
waste sector is also benefitting from this initiative by becoming greener as well as a slight
employment increase to the baseline growth of 450 green jobs by 2030.

29
 Green Jobs Assessment
of Six Economic Sectors in Jordan

One of the challenges relating to recycled textiles is the need to create appropriate skills. The
stakeholders suggested to capitalise on existing capacity building interventions and to direct
them towards the creation of green skills. Better professional profiles of green textile specialists
could also result into attracting more Jordanians to work in the sector.

Green initiatives should target resource efficiency in food processing. This will help alleviate
the high cost of production (in particular, energy) and may, in line with the EMV, improve environ-
mental compliance by food manufacturers.

Due to lack of information of the employment in these companies, the number of green jobs is
currently underestimated. In a business-as-usual scenario, the sector would grow with around
3,000 jobs by 2030. However, the what-if scenario analysis illustrates that by investing in
resource efficiency, Jordanian food-processing manufacturers can create more green jobs than
in the baseline. Therefore, if this green initiative is assumed to be implemented in 60% of the
medium-to-large companies, so from 2024 onwards, the share of green jobs within the sector
could be more than 60%.As a result, the number of green jobs is expected to increase to over
34,000 jobs, of which 50 new green jobs.

The cost savings will help both the sector to expand their output, and indirectly the households
which would benefit from higher local production through raised incomes. Stakeholders
suggested that, for implementing resource efficiency measures, skills are crucial and currently
represent a bottleneck to greening the sector. Therefore, increasing attention should be
dedicated to skills and capacity building as well as to building workers’ awareness of green
processes in food production.

As a by-product of the expansion and improvements in wastewater, sustainable manage-

ment of sludge is becoming another priority, due to the high cost of disposal. The what-if
scenario analysis shows additional green employment generated in the water sector from selling
the sludge. The investment benefits the entire economy in the short term, with 1000 additional
jobs being generated to build the facility to dry the sludge. An extra seven green jobs would be
added to the water sector for each water treatment facility that would adopt sustainable value
extraction of sludge management.

In addition to the benefits explored by the what-if scenario on using sludge for energy produc-
tion in other sectors, the experts recommended its use for electricity generation in water
treatment plants. Experts estimate that this would yield a reduction of electricity costs in waste-
water facilities by 30%. More wastewater treatment plants adopting sustainable management
of sludge could heighten the relevance and profitability of this option.Investments in R&D are a
precondition for improving sludge management and should be accompanied by capacity and
skills development. Better sludge management will also result in higher demand for new profes-
sional occupations, such as sludge managers and technicians and both academic and
vocational training institutions should respond swiftly to support this new trend.

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 Green Jobs Assessment
of Six Economic Sectors in Jordan

Up to 75% of the jobs in transport sector are green jobs since public transport is considered
to be a greener transportation than private transport. By 2030, in a business-as-usual case, the
number of green jobs in the public sector would increase to almost 67,000 jobs.

Transport is one of the key sectors targeted by the EMV, aimed at fostering increased adoption
of clean energy in transport and improving public transport. Current barriers are connected to
the inadequacy of a reliable network of transportation for both people and goods, in particular
in light of growing population and connectivity needs. Growing mobility demand in Jordan has
not been met with the required development of public transport to enable passenger movement
and accessibility (World Bank, 2022b), while road transport remains the only available way of
transporting commodities in Jordan.

In line with the EMV’s ambition for the sector, the what-if scenario simulates an increased adop-
tion of e-buses for public transport and e-charging facilities throughout the Kingdom. The model-
ling results suggest that would have positive indirect, and induced employment effects, driven
to a large extent by the investment in charging infrastructure. To support this greening of public
transport, authorities should develop an appropriate regulatory framework including progressive
plans and clear targets for the decarbonisation of mobility. Considering that except for the
Greater Amman Municipality, public transport is mostly licensed to private providers, financial
incentives to compensate investment in more expensive e-buses are needed and, in parallel,
charging infrastructure should be built throughout the country. The results suggest that this
holds considerable potential to add green jobs to the economy.

The agricultural sector is depicted as one of the strategic sectors of the EMV, also due to its
link to food security, resilience, and income opportunities of rural communities, as well as to its
significant water use. Water scarcity, fragmentation of land ownership, low levels of investment,
low productivity, and informality of operations are all factors constraining the growth of the
sector (Jordan Government, 2022).

The potential for green jobs in the agricultural sector was assessed only for crop production.
Around 10,000 jobs are currently green in the crop production. By 2030, around 11,000 green
jobs are expected. This is without any further/other green initiatives being implemented, which
would increase this figure further.

Based on the NDCs, improving the efficiency of irrigation should be achieved by boosting adop-
tion and building capacity for water harvesting techniques, but also by increasing acceptance
among farmers of using treated wastewater, and expanding drip irrigation. The use of drip
irrigation makes agricultural production greener. The current green jobs estimated in agriculture
are linked to vegetable production. By extending this green process to other types of crops,
Jordanian agricultural sector could increase the number of green jobs in the sector.

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Despite observing encouraging improvements in the deployment of renewable energy,

Jordan’s energy mix is still dominated by conventional (imported) fuels. Authorities are
envisioning a green transition of the sector and energy is at the core of the Jordan Energy
Strategy 2020-2030 (MEMR, 2020).

Currently, almost 4,750 green jobs are present in the electricity sector, and they are linked to the
generation and distribution of electricity generated from renewables. In a business-as-usual
scenario, the number of green jobs would be expected to grow to over 5,000 by 2030.

Reviewing the structure of the sector, energy efficiency improvements should guide a
fully-fledged portfolio of interventions, targeting companies, as well as private individuals. Public
awareness and a streamlined certification process should be regarded as a precondition for the
success of this line of interventions. Green jobs are found in the part of electricity generation
using renewables and in the adoption of energy efficiency technologies. The higher the share of
renewables in electricity generation, the higher will be the number of green jobs in the sector

According to the EMV, tourism is both addressed as a driver of growth within the Destination
Jordan flagship initiative and within the Quality-of-Life framework. The COVID-19 pandemic had
a significant negative impact on tourism and led to major job losses in the sector.

Green jobs are currently found in eco-tourism and in green hotels and they represent between
25-44% of the jobs in the sector. The green transition of the tourism sector necessitates invest-
ment and emphasises the value of corporate social responsibility. Government incentives for
certification may be crucial in facilitating this change and increasing the green jobs potential of
the sector. For example, initiatives directed towards awareness and tailored marketing for
eco-tourism in Jordan could be implemented and, once again, skills for qualified eco-tourism
operators need to be fostered. Investing in awareness and skills can also benefit the entire
supply chain, with potentially important employment and income effects among typically margin-
alised social groups, such as farming communities and agro-pastoral workers in rural areas.

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6 Conclusions
 Green Jobs Assessment
of Six Economic Sectors in Jordan

6 Conclusions
This report allowed for an initial assessment of current green jobs in six economic sectors of the
Jordanian economy - water and waste, energy, transport, agriculture, manufacturing, and
tourism - and showcased through specific green economy investment initiative that Jordan hols
great potential for green employment creation from additional capital investments in green
technologies. Green investment promotion will play a pivotal role in creating and sustaining
green jobs, as well as supporting a widespread transition towards a green economy in Jordan.
Such investments need to be supported with a robust legal framework that creates enabling
conditions for green financing, technology transfer, and capacity development of human
resources in addition to market-based incentive systems that encourage the private sector to
generate green jobs.

This current assessment serves as a starting point for more economy-wide and sector-specific
scaling up of green jobs assessments, using new data sources and more in-depth investigation.
Enabling economic and social policies should be explored to create the proper conditions for
green job creation, greening of current jobs and the enhancement of practical skills in the labour
force in Jordan to realise the emerging potential for green jobs.

While the analysis shows that the green transition has the potential to increase net jobs, the
pattern of job gains and losses suggests that careful design of an appropriate policy package
(including legislative changes) will be important to manage a smooth jobs transition. For exam-
ple, it would be desirable to enact energy efficiency, EV deployment and renewables take-up as
a package to support stable energy and employment demand, while also pursuing effective
decarbonisation. Implementing a package of policies facilitates synergies and can help ensure
that jobs created in one sector absorb the jobs losses in another sector. Education and training
providers will also play a crucial role in the smooth transition of workers between the
sectors/roles.

The impacts of new technological trends could either support or deter green job creation,
depending on the strategic approach taken by both the public and private sectors. Technology
will also redefine some jobs, so re-skilling opportunities would help current workers remain in
employment as skills requirements change.

The transition to a green job market is a long process that requires political commitment, wide-
ranging policy reforms, tools for measurement of green jobs creation and the adoption of appro-
priate technologies. If such commitments could be achieved, Jordan seems well-positioned to
unlock the potential of the green economy in generating meaningful employment opportunities.

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 Green Jobs Assessment
of Six Economic Sectors in Jordan

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