On March 24th, 2022, The Lebanese Ministry of Environment, under its current Minister Dr. Nasser Yassine, launched the first-ever private sector dialogue on climate finance.
Event flyer source: Ministry of Environment, Lebanon
This was organised in collaboration with the Lebanese Republic Economic and Social Council and the Green Climate Fund for Lebanon. The dialogue-style event hosted a number of private institutions such as banks, commercial businesses, and private sector coalitions.
Youth4Nature was the only youth-led representation at the event (Special thanks to his excellency Dr. Yassine for our personal invitation).
Main keynote speech points of Dr. Yassine.
Involved members tried to steer the discussion towards the needed practicality. Concerns were raised by the private sector regarding the hardship of the current economic crisis. The Green Climate Fund, along with the Ministry of Environment, highlighted several mechanisms that have been developed to support a green transition for the private sector, including mechanisms that offer businesses the opportunity to be involved in Lebanon’s national adaptation and mitigation plans. Most of the dialogue focused on how the private sector can be supported, instead of how the private sector can support a green transition.
What did the youth ask?
Our West Asia Regional Director of Lebanese nationality, Rayan Kassem, asked the following to the panel:
“Is the private sector willing to financially support youth-led initiatives tackling the climate crisis? Are there mechanisms in place for this?”
The response provided by UNDP representative, Jana Koperniech, was that mechanisms and financial support are being considered for youth. This is to be facilitated by a national dialogue. It’s important to mention that the support that would be given is to be channeled through UNDP and not the Lebanese private and public sectors. This is not a surprise given the nature of climate finance in the MENA region.
One panelist expressed that the Lebanese economic crisis has positively shifted the mindset of individuals and businesses. This is in response to the shortage and inflation of electricity. Lebanese businesses and citizens have been actively switching toward solar panels to provide themselves with electricity. An approach that has been difficult to achieve under normal circumstances.
Midway through the discussion, energy transition became the primary focus. It seems that the private sector was siloed into becoming more green using renewable energy. Rayan expressed that there should have been more awareness regarding what types of contributions the private sector can provide other than energy transitioning.
Important information to keep in mind
The Lebanese Ministry of Environment received less than 1% of the annual government budget.
The current Minister is set to leave after the May elections.
The price of fuel is increasing as the crisis worsens - price remains a primary factor for the indirect green transition being witnessed.
Overall reflections
As a first start, the private sector dialogue was successful in discussing the practicalities of climate finance in Lebanon. The mechanisms highlighted have long been put in place but without enough participation from the private sector. Rayan assumes this is due to the ill transparency between public and private sectors on projects and data. The private sector needs to be more aware of the existing mechanisms the government has put forth and not only those at an enterprise level but also small businesses, markets, investments, and regions within the country not aware of these mechanisms.
The state of youth finance support in Lebanon remains vague although progress is being made behind the scenes at the current moment. The question we are left with: how motivated will the private sector remain toward a green transition under the current circumstances?
“This blog was written and submitted by Rayan Kassem”
Rayan expressed that there should have been more awareness regarding what types of contributions the private sector can provide other than energy transitioning, such as using clean technologies to lower their water pollution, set up a common fund for nature and climate from their profits, support decentralized public transportation, and eliminate their exploitation of natural areas and resources near communities.