The roadmap, drafted in partnership with UNEP, and based on a consultation of the financial industry and civil society, establishes an ambitious vision and makes recommendations to lay the groundwork to establish a comprehensive and far-reaching sustainable finance strategy, notably leveraging Luxembourg’s inherent strengths as an international financial centre, to contribute to the Agenda 2030 and the objectives of the Paris Agreement.
The recommendations in this roadmap take into account the ongoing work at EU level. The EU Action Plan indeed has three high-level aims: reorienting capital flows, managing financial risks linked to climate and other ESG areas, and fostering transparency and long-termism. Luxembourg can be a frontrunner in pushing for the most advanced solutions, testing and implementing new approaches to ensure that sustainable finance products are:
- easy to access: investors should be able to find a complete and transparent offer of sustainable investment opportunities
- expertly managed: asset managers should be supported in setting up, managing and distributing their sustainable products
- serving a purpose: sustainable enterprises should be supported in accessing long-term funding
- credible: the impact of sustainable financial products should be evaluated in order to create clarity and confidence, and avoid greenwashing.
Thanks to recent initiatives such as the Luxembourg Green Exchange, a joint climate investment platform with the EIB, an international climate finance accelerator for fund managers, or a dedicated climate label for investment funds, Luxembourg has not only proven its commitment to help raise finance to meet global climate-related challenges, but has demonstrated its ability to innovate. The roadmap aims to build on the work achieved so far and go further in driving sustainable finance at national, EU and the international level.
The financial centre has indeed long been a pioneer in sustainable and green finance. Building on its strengths and expertise, and notably its proven track record in investment funds, blended finance, bonds, securitisation and sustainable labels, Luxembourg can be a test market, a standard setter and a multiplier on an international scale, allowing market participants to innovate and meet their sustainable finance ambitions.
The full roadmap and recommendations can be downloaded here.