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, Luxembourg is the global leader in inclusive finance and has a 61% market share of global assets under management in Microfinance Investment Vehicles (MIVs).
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 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 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.
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 80 foundations that engage in projects around the world.
02.01.2019 - The Financial Centre
New Luxembourg government sworn in, committed to continued development of financial centre
02.11.2018 - Sustainable Finance
Global financial centres meet in Shanghai to drive forward sustainable finance agenda
01.10.2018 - The Financial Centre
Luxembourg continues to rank among the top 3 financial centres in the EU
12.09.2018 - The Financial Centre
GFCI: Luxembourg once again ranked top 3 financial centre in the EU
16.07.2018 - Banking
Bank of Singapore launches Luxembourg wealth management arm to serve clients in Europe
22.06.2018 - The Financial Centre
Luxembourg´s financial centre ecosystem is supporting Brexit business
12.06.2018 - Sustainable Finance
Luxembourg and Shanghai exchanges connect issuers and international investors through new Green Bond Channel
06.06.2018 - FinTech
Ripple partners with University of Luxembourg for blockchain research initiative
18.04.2018 - Sustainable Finance
Leading Financial Centres Agree Action Plan for Green & Sustainable Finance