BEIRUT, 23 February 2024 – The United Nations Development Programme (UNDP) and the Ministry of Environment in partnership with Cedar Oxygen SAS have announced the launch of a financing facility – the Lebanon Green Investment Facility (LGIF) – aimed at accelerating climate mitigation and adaptation efforts across Lebanon.
The Facility represents a significant milestone in the Lebanese government’s efforts towards meeting its international commitments under the Paris Agreement – known as Nationally Determined Contributions (NDCs) – including a 20 per cent unconditional reduction in greenhouse gas emissions by 2030.
It comprises a private investment impact fund coupled with technical support dedicated to accelerating climate action and investments targeted towards achieving Lebanon’s NDCs.
Through strategic investments and partnerships, LGIF aims to support a wide array of climate projects such as renewable energy, sustainable agriculture, water conservation, and climate-smart infrastructure among others.
“The Ministry of Environment hopes to advance climate action and sustainability by improving access to a wider pool of financial instruments,” said H.E. Dr. Nasser Yassin, Minister of Environment. “The LGIF will be transformative in greening Lebanon’s economic recovery and supporting the private sector, both of which are crucial to emerging from the current crisis.”
Based in Luxembourg, the Fund pursues a blended finance strategy that seeks support from development finance institutions, private investors, endowments and aid agencies.
“In order to create maximum positive impact, we are pursuing a blended finance strategy and seeking support from development finance institutions, private investors, endowments and aid agencies,” said Mark Smyth, Cedar Oxygen’s Chief Investment Officer.
Adding that “establishing the fund in Luxembourg with an independent and robust governance structure will make LGIF a reliable source of finance for the private sector in Lebanon, who will take the lead in driving positive climate action.”
Established within the framework of UNDP’s Climate Promise 2.0, the LGIF is the first facility of its kind in the Arab States region. It relies on co-investments to unlock additional funding, on targeted technical assistance for investors to increase impact, and on strategic partnerships to expand its network and influence.
To that end, UNDP will provide technical support and advisory services to the Facility in the form of climate and SDG impact assessments, with tailored metrics to manage its social and environmental impacts.
According to UNDP Acting Resident Representative Mohammed Salih, the LGIF is a concrete translation of UNDP’s strategy as set out at COP28, which aims to ensure that every country can mobilize finance to achieve their pledge under the Paris Agreement, which further drives ambition and accelerate progress on the SDGs.
“The Lebanon Green Investment Facility demonstrates the leadership role that developing countries, particularly Arab countries, can play in enabling a green and climate-friendly recovery, including in post-crisis scenarios,” said Salih.
The LGIF is part of the UNDP Climate Promise 2.0 project, funded by the German Government, and dedicated to supporting the private sector in Lebanon in accessing much needed capital in alignment with the Climate Paris Agreement.
Since 1999, UNDP has provided support to the Ministry of Environment in their efforts to address climate change, and their reporting obligations to the UNFCCC. UNDP’s role has involved offering technical support and in supporting national initiatives aimed at integrating climate change considerations into development plans and reforms.
This partnership has enabled the Lebanese Government to formulate and present its Nationally Determined Contributions to the Paris Agreement, submitted in both 2015 and 2021.
For more information, please contact
In UNDP – Lebanon | Rana Moughabghab | rana.moughabghab@undp.org | +961 3 835 351
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UNDP is working in Lebanon since 1986 as a development partner supporting economic recovery, including working with municipalities to deliver basic services to host communities, promoting clean energy and solid waste management, strengthening governance and rule of law, providing support to elections, and working on empowering women and youth.