Ammon News - The United States Agency for International Development's (USAID) Energy Efficiency for Industrial Productivity Program (Kafa'a) was launched on Tuesday with the aim of engaging the industrial sector in the energy efficiency journey to enhance its productivity, offering direct technical assistance to Jordan's industries and collaborating with other development partners and stakeholders to enable a market-driven, scalable adoption of energy efficiency.

The program's initial focus will be on three industrial sub-sectors based on scalability, energy intensity, export capacity, social impact, and energy efficiency potential and will be implemented through several rounds over the 2023-2027 period. For the first round, the program is targeting the following industrial sub-sectors: food supply and processing, agriculture and livestock industries; engineering, electrical and information technology industries; and chemical and cosmetic industries.

Partners in the program are the Ministry of Energy and Mineral Resources, the Jordan Chamber of Industry, the EDAMA Association for Energy, Water and Environment and the Renewable Energy Establishments Society.

During the launch ceremony, Minister Saleh Kharabsheh, whose speech was delivered by the ministry's Secretary-General Amani Azzam, noted that the industrial sector is a key sector that pushes the wheel of economic growth, contributing about 25 percent to the Gross Domestic Product directly and 40 percent indirectly and employing about 250,000 workers.

He pointed out that adopting a comprehensive energy efficiency program will not only reduce the direct cost of energy but also has tangible benefits on operation and maintenance costs and productivity in general, in addition to the role of energy efficiency programs in reducing greenhouse gas emissions and the effects of climate change.

On energy efficiency measures in the Kingdom, the minister pointed to the Renewable Energy and Energy Rationalization Law No. (12) of 2012 and its amendments, the Energy Sector Strategy for the years 2020-2030 and the national plan for energy efficiency, the third part of which is currently being examined.

Additionally, the ministry, over the past years through the Jordan Renewable Energy and Energy Efficiency Fund, has implemented targeted activities and programs to up energy efficiency, including the Supporting Energy Efficiency Applications in the Industrial Sector program, which is being implemented in cooperation with the Jordan Chamber of Industry.

On measures in the industrial sector, he underlined that the ministry has adopted over the past few years several policies and projects that aim to reduce the sector's production costs, including allowing the sector to carry out a project to generate electricity from solar energy with a capacity of 100 megawatts. It also encouraged industries to use natural gas instead of diesel and heavy fuels and is currently adopting a national program to deliver natural gas to the industrial cities, which will be implemented this year, starting with the industrial cities of Al-Muwaqqar and Al-Rawdah.

Kharabsheh underscored that the ministry will continue supporting projects and programs that support the industrial sector and achieve strategic goals, lauding the role of the USAID for its ongoing support for the energy sector in Jordan and the agency-funded Energy Sector Support Activity.

For his part, Chairman of the Jordan Chamber of Industry Fathi Jaghbir stressed the importance of enabling industrial establishments to optimally manage energy sources and reduce consumption, in addition to adopting the top applications and technologies that help the sector address various challenges and compete in the local and export markets.

For her part, Marie Warzala, program director of the Energy Sector Support Activity, said that the program enhances productivity and competitiveness, reduces energy costs and builds capacity for energy management to reach new markets, green financing and entrepreneurship in energy efficiency.

Deloitte's United States Managing Director Richard Longstaff stressed that energy efficiency is an ideal and flexible solution that reduces operational costs and contributes to adapting to new technologies and challenges.