The Association of Banks in Jordan has signed a joint memorandum of understanding with Terra, a company specializing in the collection, transportation, and recycling of electronic and electrical waste. The aim is for the association to benefit from the recycling programs offered by the company by joining its member network.

The signing of the memorandum of understanding comes within the framework of the association’s efforts to enhance green initiatives in its operations, in light of several developments in the banking sector, including the launch of green finance potentials and the circular economy, in line with the Central Bank’s Green Finance Strategy for the years (2023-2027), which serves as a roadmap towards greening the banking sector and developing a sustainable approach.

Dr. Maher Al-Mahrouq, the Director General of the Association of Banks, noted during the signing of the memorandum of understanding that the banking sector is one of the sectors leading the digital transformation process in the Kingdom, being one of the sectors that extensively use technological products, especially following the recent emergence of financial systems and technological financial services in the sector. This necessitates the banking sector to responsibly deal with the technological success outcomes by utilizing tools for recycling used electronic products. Dr. Al-Mahrouq also emphasized that the banking sector’s use of technology and its disposal aligns with best practices, international experiences, and local laws.

Furthermore, Dr. Al-Mahrouq highlighted some of the achievements of the association in the field of green finance and financial sustainability in the banking sector, indicating that these activities essentially aim to build banking capacities and assist in developing financial products suitable for the circular economy and activating the potentials of economic sectors. This enables innovative initiatives to build forward and backward linkages within the circular economy, facilitating their work. This approach aligns with the role of the banking sector in the economy due to its nature of operation and its interconnection with all economic sectors through providing financing services.

Ms. Mira, one of the founders and the General Manager of Terra, explained that the company operates to serve a network of members by collecting and recycling their waste without them incurring any costs. Additionally, there are several benefits that the banking sector can leverage, such as covering financial sector obligations related to data destruction and information in an appropriate and protected manner according to banking sector transaction principles. Moreover, a package of guarantees for this process is provided. Ms. Mira pointed out that the utilization of these benefits is through banks joining the company’s member network. She also clarified that the network services are available to all economic sectors and not exclusive, providing affiliated parties with the freedom to benefit from the services and contribute to their transition towards addressing electronic waste rather than disposing of it through traditional methods.

Mr. Hakim Zaza, another founder of the company, expressed his happiness and pride in the achievements of the banking sector, considering it a sector to be emulated in environmental protection and diligently working to provide financial products that suit the needs of various sectors. He mentioned that the company is accredited and licensed by local authorities in processing electronic waste and methods of recycling them in the economy, adding that one of the advantages of joining the member network is that members who recycle their electronic waste receive a locally accredited green certificate.

At the end of the memorandum of understanding signing ceremony, Ms. Mira expressed her gratitude to the Association of Banks in Jordan, represented by the Director General Dr. Maher Al-Mahrouq, for their ongoing cooperation with innovative ideas. Dr. Al-Mahrouq also stated that the association will continue to strive to enhance and raise awareness of green activities and trends towards the circular economy for its numerous benefits to the economy, society, and future generations.