“Urgent Investments Needed in Lebanon to Mitigate Climate Change Impact: World Bank Report”
The World Bank has recently released a new report highlighting the urgent need for no-regret investments in key service sectors in Lebanon to mitigate the impact of climate change on the country’s development path. The report, titled the Lebanon Country Climate and Development Report (CCDR), emphasizes the critical importance of investments in sectors such as energy, water, transport, and solid waste to address mounting climate risks and spur growth in the country.
Lebanon is currently facing significant challenges in terms of climate change readiness, ranking second to Yemen in the MENA region and 161st out of 192 countries globally. The country’s limited adaptive capacity, exacerbated by the ongoing economic and financial crisis, has left it vulnerable to the impacts of climate change. The report warns that climate change is projected to reduce Lebanon’s growth potential by up to 2% annually by 2040 and impede service provision, particularly in the water sector.
One of the key recommendations of the report is the decarbonization of Lebanon’s power sector, which offers a triple dividend of reducing economic costs, lowering emissions, and improving macro-fiscal outcomes. Expanding renewable energy sources is seen as a crucial step towards meeting growing energy demand, reducing emissions, and creating job opportunities. In the water sector, building climate-adaptive capacity through increased storage capacity and water use efficiency is essential for enhancing water security.
The report also highlights the importance of promoting electrification of public transport and improving solid waste management as opportunities to advance both development and climate agendas simultaneously. It estimates that Lebanon will need to invest approximately US$7.6 billion between 2024 and 2030 in the key sectors covered in the report to align its recovery with cost-effective climate action.
In the short term, an urgent financing envelope of US$770 million is recommended to address critical needs in the four sectors. The report emphasizes the importance of mobilizing private sector financing to enhance fiscal and debt dynamics and reduce the government’s share of total investment spending. In the longer term, investments in the energy sector, particularly in diversifying the generation mix towards cleaner renewable sources, will be crucial for sustainable development.
Overall, the report underscores the importance of empowering Lebanon’s private sector, improving governance, and adopting a whole-of-society approach to climate change as critical elements for the country’s green recovery. By prioritizing investments in key service sectors and taking proactive measures to address climate risks, Lebanon can build resilience and ensure sustainable development in the face of a changing climate.