Luxembourg’s commitment to sustainable finance has created an environment that is uniquely suited to raising international capital for sustainable investment projects.
Governments, companies and investors worldwide use Luxembourg as a platform on which to build sustainable investment strategies.
Luxembourg: A force for good
Since 2015, the Luxembourg government and its financial services industry have been working together in a dedicated Climate Finance Task Force (CFTF).
The task force has been implementing a coherent and fully integrated Climate Finance Strategy, with the dual objective of contributing in a meaningful way to the international fight against climate change and cementing Luxembourg’s role as an international centre for climate finance.
CFTF achievements include:
- The Luxembourg Sustainable Finance roadmap: drafted in partnership with UNEP, it establishes a comprehensive sustainable finance strategy, notably leveraging Luxembourg’s inherent strengths as an international financial centre, to contribute to the Agenda 2020 and the objectives of the Paris Agreement.
- The EIB Climate Finance Platform
This joint initiative with the European Investment Bank (EIB) is designed to mobilise investment for climate related projects by combining a stop-loss guarantee with technical assistance. - The International Climate Finance Accelerator
This public-private partnership provides financial and operational support to fund managers launching innovative climate action funds. - The Amundi Planet Emerging Green One (EGO) Fund
This joint venture with the International Finance Corporation, EGO invests in green bonds emitted by banks in developing countries.
Leader in Responsible and Impact funds
Luxembourg has a strong track record in socially responsible and impact investments, providing the perfect environment for climate finance funds.
Thanks to a tried and tested toolbox of investment vehicles, widely considered the most adaptable in the European marketplace, Luxembourg layered funds have proven particularly effective in projects requiring blended financing from both public and private investors.
leading European market share of responsible investment funds
of AuM in European impact funds
of AuM in European environment strategy funds
The Luxembourg Green Exchange: The world’s first and only green exchange
In 2016, the Luxembourg Stock Exchange launched the Luxembourg Green Exchange (LGX), the first global platform dedicated to green, socially responsible and sustainable securities.
The LGX, with its enhanced transparency and reporting standards, channels investment into sustainable projects.
Through stringent eligibility criteria the LGX also contributes significantly to the definition of a global sustainable investment taxonomy.
The Luxembourg Green Exchange has the largest market share of listed green bonds worldwide.
By setting strict standards for green securities, LGX aims to create an environment that will allow the market to prosper in a secure and transparent way.”
Fund labelling: LuxFLAG
Fund promoters can also use the LuxFLAG investment labelling system to reassure investors that a product invests in the given sector in a sustainable and transparent manner.
LuxFLAG, the government’s dedicated fund labeling agency, confers the labels or specific investment fund strategies such as microfinance, ESG, environment and climate finance.
Philanthropy: putting wealth to work
Wealth can be an incredible leverage to help others. Luxembourg provides solutions to maximise the impact of giving.
The Fondation de Luxembourg is the country’s specialist philanthropy service provider.
The Fondation de Luxembourg is an important asset for the Luxembourg private banking community. By means of an umbrella foundation structure, the Fondation de Luxembourg assists donors in selecting, structuring and managing their philanthropic investment projects. The organisation now covers almost 70 foundations that engage in projects around the world.
