The study “Sustainable Finance in Europe and Luxembourg 2025”, which does not take into account funds of funds or money market funds in public markets, also demonstrates that the intensification of geopolitical tensions, macroeconomic volatility and the European Union’s openly stated shift in ambitions have not dampened investors’ resolve to put their savings to work against climate change, biodiversity loss and social inequalities.
Between 2020 and end-2025, AuM in European sustainable public market funds grew at an annual rate of 12.6% (from €1.5 trillion to €2.6 trillion). In sustainable private markets, growth was even more significant: between 2020 and end-2024, AuM rose from €274 billion to €1,1 trillion, representing CAGR of 41.8%.
In Luxembourg, assets in sustainable public market funds grew at an annual rate of 9.1% between 2020 and 2025 (from €527.5 billion to €815.4 billion). In private market funds, total sustainable AuM increased from €190.2 billion to €855.6 billion (+45.6% per year).
Luxembourg firmly maintains its leadership in sustainable finance. In an increasingly complex political and geopolitical environment, this priority remains firmly on the agenda. To preserve this competitive advantage in the face of regulatory changes and growing demands for data, innovation and anticipation of new standards will be decisive.
Read the full report here.