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