Climate Promise 2.0 Lebanon project

Summary


UNDP Lebanon is finalizing the Lebanon Green Investment Facility (LGIF) structure with the aim of creating a partnership among financial institutions to create a dedicated vehicle for private sector investments geared to accelerate the green transition and recovery of Lebanon. In parallel, the project aims in delivering a number of bankable projects that are gender-responsive with strong measuring, reporting and verification system to contributing towards Lebanon’s emission reduction an increasing climate resilience.
 

Background

Lebanon submitted its updated Nationally Determined Contribution (NDC) in March 2021 to the United Nations Framework Convention on Climate Change (UNFCCC). The NDC outlines a series of conditional and unconditional targets in the form of deviation from Business as Usual (BAU) emissions by 2030 as well as adaptation considerations. The NDC also outlines support needed for the NDC implementation and achievement and states that the Lebanon Green Investment Facility (LGIF) is aimed to provide climate and green financing though accessible and affordable blended finance instruments for the private sector, as well as technical assistance to various entities to create bankable projects. The LGIF is foreseen to substantially contribute to the implementation of the NDC by increasing investments in climate-positive projects, through strong donor and private sector coordination mechanism and capitalization strategy and contribute to improve the efficiency of utilization of funds. Therefore, the LGIF is composed of two integrated yet independent (in function) entities; the LGIF investment structure and the technical assistance unit (within UNDP), with clearly defined complementary roles and responsibilities.

Major Achievements

  • Fill the gap in the private sector financing;

  • Fill the gap as international financing.

    There is an important gap of private sector financing as well as international financing. Building on Article 2.1.c of the Paris Agreement, the LGIF concept can contribute to fill that gap, more specifically leading to the creation of a portfolio of different finance vehicles ranging from technical assistance, equity, debt, venture capital, guarantees, concessional financing, grants, etc.) therefore blending finance contributing towards an efficient climate action, including the potential benefit from the article 6 under the Paris
    Agreement.


Project outcome

  •  Scale and Speed:  Countries have effectively strengthened inclusive and gender-responsive governance and financing mechanisms to enable delivery and tracking of NDC targets across sectors.

  • Amplifying Ambition: Countries have established long-term net-zero and climate resilient development pathways aligned with the goals of the Paris Agreement. 

  •  Lasting Inclusivity: Key actors within society are systematically engaged and empowered to contribute to accelerate NDC implementation and long-term net-zero and climate resilient development pathways.

GESI Component (Gender Equality and Social Inclusion)

The project aims in: 

Supporting institutional capacities and whole-of-government coordination mechanisms at all levels strengthened to support effective, gender-responsive and inclusive NDC implementation processes

Developing inclusive and gender-responsive financing strategies, plans or investment frameworks developed to define and mobilise diverse sources of finance (international/domestic public/Private sector) to support implementation of NDC actions and drive green recovery across key sectors.