INTRODUCTION

Lebanon is currently facing an economic, financial, employment, political, and social crisis, and one of the main causes of this crisis is the energy problem. Mismanagement of energy by the politically influenced public system has led to unsustainable debt levels, resulting in Lebanon’s financial default in 2019. The consequences of this crisis include inflation, rising poverty, high unemployment rates, political deadlock, social protests, and a general lack of trust in the system.

To address this crisis and pave the way for development in Lebanon, it is essential to find a sustainable solution to the energy problem. An initiative has been proposed to encourage an energy transition that can drive economic development, employment inclusion, and environmental sustainability. The key components of this initiative are:

1. Promotion of green businesses: Given the unreliable and inefficient centralized energy management, green solutions are considered more promising. The initiative aims to support the development of green businesses by providing better structuring, access to credit, and opportunities for growth.
2. Training of necessary skills and professional profiles: Despite high unemployment rates, there is a paradoxical situation where some companies struggle to find suitable employees while training centers produce graduates who cannot find employment. The initiative aims to bridge this gap by providing training programs aligned with the needs of green enterprises.
3. Promotion of an enabling regulatory and institutional environment: Policies favoring green investments, such as the regulation of Energy Performance Contracting, are crucial to create a supportive environment. These policies can also help rebuild trust at the national level.
4. Capacity Building in energy management, measurement and verification and performance contracting and financing
5. Around 50 energy audits to be implemented; Fully Funded by ICU
6. Implementation of 10 pilot projects based on the ESCO business model; Partially Funded in grant-form financing

The initiative involves several partners, including the Lead CSO ICU, which has experience in productive activities and energy transition in Lebanon. Other partners include CSO ELIS, ENEA (Italian energy transition reference body), Berytech (organization specializing in business development), Fondation Diane (organization promoting entrepreneurship with a social impact), and the Federation of Chambers of Commerce, Industry, and Agriculture in Lebanon (FCCIAL).

Additionally, the initiative collaborates with other entities at a wider level. For example, Berytech works with public and private financial institutions in Lebanon, while ICU collaborates with the Italian Ministry of the Environment for financial facilities related to green technologies.

The three-year initiative aims to achieve several results, including raising awareness among 300 Lebanese companies about the benefits of green business, training 50 companies in developing their Green Business Plans, supporting the implementation of these plans for 20 companies, assisting three training centers in preparing professional profiles for green enterprises, and stimulating multi-stakeholder dialogue to improve policies related to energy transition, business development, and job placement.

The expected impact of the initiative is a significant contribution to Sustainable Development Goals (SDGs) 7 and 8, focusing on clean and affordable energy and decent work and economic growth, respectively. It is anticipated that the initiative’s results and the strengthened cooperation among local partners will continue to have a positive effect even after the project concludes.

PROJECT PROCESS & TIMELINE

The project follows a competitive process along all its value chain. This beneficiary application form will set the stage for the competitive selection of SMEs. When the SMEs are selected, they will benefit from a high-grade energy audit for their facilities, leading to a set of energy conservation measures, followed by an implementation of most feasible measures under an ESCO contract, that incurs no financial costs on the SME.