From the Super Mario Wiki, the Mario encyclopedia
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The L Emblem is a badge that appears in Paper Mario: The Thousand-Year Door. It can be found in the room accessible through the background painting in Poshley Sanctum, where it is found on the far side of the highest platform on the left.
If Mario equips the badge, it changes the color scheme of his clothes to resemble Luigi's, turning his hat and shirt green; this reflects Luigi's earliest appearance, when he was simply a palette swap of Mario. This change does not affect Mario in any way, though Toadia, who is the leader of the Luigi Fan Club, submits a trouble to the Trouble Center asking for Luigi to visit, and she rewards Mario with a Choco Cake if he shows up with the L Emblem equipped. If combined with the W Emblem, Mario's clothes will resemble Waluigi's, with his hat and shirt turned purple, his overalls becoming black and his shoes becoming orange.
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