Showing the way to a greener economy
The Grand Duchy has been actively engaged in the microfinance industry since the early 1990s with the establishment of the first Luxembourg microfinance institutions.
Today, almost a third of global MIVs are based in Luxembourg, accounting for more than 50% of the global AuM in MIVs (Directorate for Development Cooperation and Humanitarian Affairs, April 2020).
The financial centre acts as a leading international platform for sustainable finance, supporting a range of activities from responsible investment funds and blended finance to green bond listings and ESG fund labelling.
Luxembourg: A force for good
Luxembourg is constantly expanding its toolbox of products and services designed to promote investment into green and sustainable projects and to help bring sustainable finance into mainstream.
The Grand Duchy of Luxembourg is fully committed to the goal of transforming itself and assisting other markets in their transition to a sustainable global economy. To this end, Luxembourg has established a coherent climate finance startegy with the dual objectives 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.
Some of the initiatives include:
- The Luxembourg Sustainable Finance Initiative (LSFI): a non-profit association that designs and implements the Sustainable Finance Strategy for the Luxembourg financial centre. LSFI’s main objective is to raise awareness, promote and help develop sustainable finance initiatives in Luxembourg
- 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 Fund
This joint venture with the International Finance Corporation 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.
The Luxembourg Green Exchange: The world’s first and only green exchange
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.
LGX is the listing venue for Europe’s first social bond issued under the EU SURE programme (LuxSE Oct 2020).
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, a public private partnership, is a dedicated finance labeling agency, and 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 93 foundations that engage in projects around the world (FdL 2020).
18.05.2022 - Sustainable Finance
Sustainability-Linked Bonds: a fast-growing trend in capital markets
20.10.2021 - Sustainable Finance
Luxembourg moves up the ranking in latest Global Green Financial Index (GGFI 8)
19.05.2021 - The Financial Centre
Luxembourg Financial Services Industry Survey: Cautious optimism despite numerous challenges
29.04.2021 - Sustainable Finance
Luxembourg financial centre’s green credentials are reconfirmed by the latest Global Green Financial Index (GGFI 7)
09.11.2020 - The Financial Centre
Survey: Financial services leaders offer gloomy outlook as European lockdowns return
02.11.2020 - The Financial Centre
EUR 17 billion EU SURE social bond listed on Luxembourg Stock Exchange
02.11.2018 - Sustainable Finance
Global financial centres meet in Shanghai to drive forward sustainable finance agenda
12.06.2018 - Sustainable Finance
Luxembourg and Shanghai exchanges connect issuers and international investors through new Green Bond Channel
18.04.2018 - Sustainable Finance
Leading Financial Centres Agree Action Plan for Green & Sustainable Finance
31.01.2018 - Sustainable Finance
Luxembourg financial centre welcomes report by EU Commission’s High-Level Expert Group on sustainable finance
02.10.2017 - Sustainable Finance
The Luxembourg financial centre: committed to help develop sustainable finance at European and global level
28.09.2017 - Sustainable Finance
Luxembourg and China strengthen collaboration and commit to working closer together in climate finance
26.06.2017 - Sustainable Finance
Luxembourg launches Accelerator to support innovative asset managers in the area of climate finance
01.06.2017 - Renminbi
Deepening connections with China at the 4th international Renminbi Forum in Luxembourg