Green Public Expenditure: The Missing Link in Jordan’s Public Budget
Climate change adaptation is no longer solely an environmental challenge—it has become a fiscal challenge. Governments are increasingly expected to allocate greater financial resources to reduce climate risks, either through national budgets or through international climate finance dedicated to vulnerable countries.
By Dr. Murad Kalaldeh
Secretary, Jordanian Forum for Environmental Planning
This raises an important question:
Does the way governments spend public money truly support sustainable development?
In Jordan, public expenditure is governed by the annual General Budget Law, prepared by the General Budget Department under the Ministry of Finance. While the budgeting system has evolved significantly—particularly following the Public Budget Regulation Law No. 13 of 2021 and the sector-based budgeting approach introduced in 2023—environmental expenditure remains fragmented across numerous ministries and public institutions.
Today, environmental programs are distributed among the Ministries of Environment, Water and Irrigation, Energy and Mineral Resources, Agriculture, Public Works and Housing, Local Administration, Transport, Health, and several autonomous authorities. Although this institutional distribution reflects the cross-cutting nature of sustainability, it makes it extremely difficult to determine:
- How much Jordan actually spends on environmental protection;
- Which investments contribute to climate resilience;
- Whether public expenditure supports the Sustainable Development Goals (SDGs); and
- How environmental outcomes can be measured and evaluated.
This is precisely where the concept of Green Public Expenditure, commonly referred to as Green Budgeting, becomes essential.
Green budgeting is not about increasing government spending. Rather, it is about classifying and evaluating public expenditure according to its environmental and climate impacts. A transport project, renewable energy investment, wastewater treatment facility, urban regeneration program, or green infrastructure initiative may all qualify as “green expenditure” if they contribute to environmental sustainability and climate resilience.
The recently presented Jordan Voluntary National Review 2026 highlights the country’s commitment to accelerating implementation of the 2030 Agenda by strengthening the integration of planning, financing, governance, and partnerships. Achieving this vision requires moving beyond policy documents toward measurable, budget-supported implementation.
This approach is particularly relevant to six Sustainable Development Goals:
- SDG 6 – Clean Water and Sanitation
- SDG 7 – Affordable and Clean Energy
- SDG 11 – Sustainable Cities and Communities
- SDG 13 – Climate Action
- SDG 14 – Life Below Water
- SDG 15 – Life on Land
Jordan has also made substantial legislative progress in recent years. Amendments to the Greater Amman Municipality Law introduced the concept of Prudent Urban Planning, while the Planning and Organization Regulation No. 81 of 2025 established a three-tier planning framework consisting of the City Plan, Area Plan, and Neighborhood Plan. Furthermore, the draft Local Administration Law integrates spatial planning with economic and social development through a comprehensive hierarchy of development plans.
However, legislation alone cannot create sustainable cities.
Every city plan, neighborhood plan, flood mitigation strategy, biodiversity program, renewable energy initiative, or climate adaptation project ultimately depends on budget allocations.
This is why I believe Jordan should introduce a new fiscal instrument:
An Annual Green Public Expenditure Statement
This statement would accompany the annual General Budget Law and classify government programs according to their contribution to environmental sustainability and the SDGs. Each program would identify:
- Budget allocation;
- Implementing institution;
- Environmental objectives;
- Expected outcomes; and
- Performance indicators.
Such a framework would improve transparency, reduce duplication among government entities, identify financing gaps, strengthen parliamentary oversight, and enhance accountability for environmental outcomes.
Equally important, it would provide international development partners with a clearer picture of how climate finance and environmental grants are being translated into measurable national results.
Ultimately, Green Public Expenditure is not another environmental initiative—it is the next stage in the evolution of public financial management.
Jordan has already built a strong legislative foundation for sustainable urban planning and local governance. The remaining challenge is to connect those legal and planning frameworks with the public budget.
Laws define policy. Plans define priorities. Budgets deliver implementation.
The transition toward Green Budgeting would ensure that every public investment contributes not only to economic growth, but also to climate resilience, environmental protection, and a more sustainable future for coming generations.
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