UNDP and Cedar Oxygen looking into projects worth $50 million

The United Nations Development Programme (UNDP), the Ministry of Environment, and Cedar Oxygen have launched the Lebanon Green Investment Facility (LGIF) to support climate projects including renewable energy, sustainable agriculture, water conservation, and climate-smart infrastructure, according to a UNDP statement.

“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,” the statement read.

The Ministry of Environment said that the LGIF will study submitted projects worth $50 million and will seek to expand its investment portfolio.

The LGIF, which consists of a private investment impact fund and technical support, will adopt a blended finance strategy that will seek financing from development finance institutions, private investors, endowments, and aid agencies.

Ibrahim Salibi, CEO of Cedar Oxygen, said that their role will consist of handling the origination of deals in Lebanon. He said that the LGIF will provide loans to green projects and that its initial size is $50 million and could be increased in the future. Cedar Oxygen is an investment company that was established in 2020 in response to the economic crisis. It aims to support local businesses seeking financial facilities.

“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,” said Mark Smyth, Cedar Oxygen’s Chief Investment Officer.

UNDP will provide technical support and advisory services to the LGIF that will consist of assessing the climate impact and progress on achieving sustainable development goals (SDGs).

The LGIF aims to accelerate climate mitigation efforts and investments targeted towards achieving the country’s environmental commitments under the Paris Agreement. These commitments, known as Nationally Determined Contributions (NDCs), include a 20 percent unconditional reduction in greenhouse gas emissions by 2030.