First National Private Sector Dialogue on Climate Finance

Global challenges and multilateral support

Beirut, Lebanon

On the twenty-fourth of March 2022, at the Kempinski Summerland Hotel Beirut,

a participatory national dialogue meeting was held on climate finance, between

the private sector and decision-makers in the public sector, under the title ” First

National Private Sector on Climate Finance: Checking the Pulse, corporations and

Climate Change”, in the presence of H.E the Minister of Environment, Dr. Nasser

Yassin, and the President of the Economic and Social Council, Mr. Charles Arbid.

The event was held with the support of the Green Climate Fund, the South Center

and Capital Concept. The discussions addressed the role of the private sector in

improving Lebanon’s access to private financing from the Green Climate Fund

(GCF), which is the most important source of financing for climate-related projects

in developing countries, to enable them to meet the climate goals set in the Paris

Climate Agreement in 2015.

Representatives of foreign and local bodies and institutions participated in this

dialogue and made valuable interventions during the meeting, namely: the

International Finance Corporation in the Middle East and North Africa, the United

Nations Development Program (UNDP), the US Agency for International

Development (USAID), the United Nations Global Compact Network Lebanon, the

EuroMena Funds, Bank Audi, Berytech, and the Cedar Oxygen Fund. In addition to

local banking authorities, civil society organizations and representatives of the

private and public sectors. The dialogue was designed in collaboration with Mr.

Yasser Akkaoui, Chairman of Capital Concept Company, who also moderated the

panel discussions.

This event puts climate-smart private sector activities at the center of investment

options and business growth opportunities, and outlines the changes taking place

in the global business model in response to climate change. Furthermore, it

prepares the Lebanese private sector for a better adaptation to climate changes

and to what it should expect as a local and global player.

Challenges vs. solutions

The agenda brought up the issue of corporate sustainability, which has become

vital to staying in the global investment trend, as climate-smart activities are at

the heart of investment decisions and business growth opportunities. It

highlighted how the global business model has shifted in the context of climate

change, and the role of the Lebanese private sector as an actor in the local

economy and in a globalized world.

Tools and pathways to building long-term financial resilience have also been

identified. Tools and options available to Lebanese companies were advocated to

adapt to the inevitable changes in business practice and maintain a competitive

advantage in light of climate change. The participants discussed also ways to

obtain support from international funds and networks to integrate sustainability

and build green models in business strategies.

With regard to private climate investments in Lebanon, the participants focused

on knowing the extent to which Lebanese private companies are interested in

climate finance and the desire of investors to diversify and prepare their

investment portfolios. While discussing the reality of green investments in

Lebanon, the attendees revealed the main concerns of the private sector and

ways to move towards green recovery.

In his opening speech, Dr. Nasser Yassin, the Minister of Environment stated: “The

annual investment needs are estimated at billions of dollars. Therefore, climate

projects should be financed by both the international and local communities,

including the private sector. We have a great opportunity to benefit from the

prospects of climate finance. The Green Climate Fund offers a paradigm shift

towards low-carbon and climate-resilient development”.

“Climate-related investment opportunities are designed to outperform

conventional investments: not only by reaping profitable long-term returns but

also by improving the entities’ standing and reputation at the global level, thus

encouraging the influx of foreign direct investment into the country”, Dr. Yassin

added.

“Very soon, the green economy will be the only efficient and productive model.

Every company owner must now look at the future of his business in the light of

this fact”, said Mr. Charles Arbid, President of the Economic and Social Council.

Climate goals for Lebanon

The Ministry of Environment is the Nationally Designated Authority (NDA) to

coordinate with the Green Climate Fund (GCF) and acts as the interface between

Lebanon and GCF. The MoE is therefore mandated to communicate with local

stakeholders in order to establish a country programme for investment priorities

in projects related to the environment and development, through organized

discussions in order to achieve the following objectives:

– Mitigating climate change emissions, through the adoption of renewable

energy solutions, energy efficiency measures, sustainable public transport

policies and agricultural practices.

– Adapting to the impact of climate change by enhancing the resilience of the

agricultural sector, promoting the sustainable use of natural resources,

restoring degraded landscape, increasing forest covers, developing

sustainable water services that includes irrigation systems, in addition to

managing land and marine biodiversity, ecosystem’s preservation and

reduction of extreme climate impact in coastal areas and cities, ensuring

overall health and safety through a climate-smart health system, as well as

mitigating disaster risks and damages, ensuring food security and

integrating green solutions.

Green Projects Financing Tools

The Green Climate Fund supports the private sector through various tools such as

credit facilities to financial institutions, equity investments, long-term low-interest

loans, grants and de-risking tools and guarantees.

In light of the economic crisis in the country, obtaining financing for climate

projects through the entities accredited by the Green Climate Fund, such as

multilateral development banks, represents a unique opportunity for private

companies to create innovative job opportunities that will help revitalize the

economy and build a sustainable future.

Climate finance supports efforts to rebuild Lebanon on more solid foundations.

This is a unique opportunity to invest in the future through affordable energy,

energy-efficient housing, sustainable farming systems, and clean transportation

systems to avoid congestion and air pollution. Investing now in climate-resilient

infrastructure contributes to a prosperous tomorrow.

What is the Green Climate Fund?

The Green Climate Fund was established by the United Nations Framework

Convention on Climate Change (UNFCC) in 2010. This multilateral fund provides

financing for climate projects to developing countries in order to support them in

achieving their climate change goals under the Paris Agreement.

The goal of the Green Climate Fund is to achieve a paradigm shift towards

low-carbon and climate-resilient development in developing countries. The larger

the project, the greater the transformative potential, and thus the chances of

obtaining financing from the Green Climate Fund.

The role of the Ministry of Environment

The Ministry of Environment, as an interface between Lebanon and the Green

Climate Fund, plays a key role in supporting green investments in Lebanon to help

the country transition to a low-emissions economy, resilient to climate change,

through close partnership with the business sector and relevant authorities

• Mitigating climate change emissions, through the adoption of renewable
  energy solutions, energy efficiency measures, sustainable public transport
  policies and agricultural practices.
• Adapting to the impact of climate change by enhancing the resilience of the
  agricultural sector, promoting the sustainable use of natural resources,
  restoring degraded landscape, increasing forest covers, developing
  sustainable water services that includes irrigation systems, in addition to
  managing land and marine biodiversity, ecosystem’s preservation and
  reduction of extreme climate impact in coastal areas and cities, ensuring
  overall health and safety through a climate-smart health system, as well as
  mitigating disaster risks and damages, ensuring food security and
  integrating green solutions.
  Green Projects Financing Tools
  The Green Climate Fund supports the private sector through various tools such as
  credit facilities to financial institutions, equity investments, long-term low-interest
  loans, grants and de-risking tools and guarantees.
  In light of the economic crisis in the country, obtaining financing for climate
  projects through the entities accredited by the Green Climate Fund, such as
  multilateral development banks, represents a unique opportunity for private
  companies to create innovative job opportunities that will help revitalize the
  economy and build a sustainable future.
  Climate finance supports efforts to rebuild Lebanon on more solid foundations.
  This is a unique opportunity to invest in the future through affordable energy,
  energy-efficient housing, sustainable farming systems, and clean transportation
  systems to avoid congestion and air pollution. Investing now in climate-resilient
  infrastructure contributes to a prosperous tomorrow.
  What is the Green Climate Fund?
  The Green Climate Fund was established by the United Nations Framework
  Convention on Climate Change (UNFCC) in 2010. This multilateral fund provides
  financing for climate projects to developing countries in order to support them in
  achieving their climate change goals under the Paris Agreement.
  The goal of the Green Climate Fund is to achieve a paradigm shift towards
  low-carbon and climate-resilient development in developing countries. The larger
  the project, the greater the transformative potential, and thus the chances of
  obtaining financing from the Green Climate Fund.
  The role of the Ministry of Environment
  The Ministry of Environment, as an interface between Lebanon and the Green
  Climate Fund, plays a key role in supporting green investments in Lebanon to help
  the country transition to a low-emissions economy, resilient to climate change,
  through close partnership with the business sector and relevant authorities