1 October 2018
On October 4 2018, the Minister of the Environment, Carole Dieschbourg, the Minister of Finance, Pierre Gramegna and UNEP FI Head, Eric Usher presented the new “Luxembourg Sustainable Finance Roadmap” and its recommendations. These touch on many facets of the financial market, such as the development of financial products for sustainable finance, the development of training and education programs for the needs of the financial sector, or the promotion of innovation to facilitate the financing of sustainable development.
Luxembourg’s Ministry of Finance and the Department of Environment of the Ministry of Sustainable Development and Infrastructure mandated UNEP FI to develop a roadmap to scale up the financial sector’s contribution to sustainable development, the Luxembourg Sustainable Finance Roadmap. The report was drafted with the support of Innpact, a Luxembourg-based impact financing specialist, and in close collaboration with the financial sector and representatives of the civil society, through an open, creative and inclusive process involving various working groups and interview sessions.
The aim of the roadmap is to draw up an inventory of existing initiatives in Luxembourg in the field of sustainable finance, and lay the foundations for a sustainable financial strategy, contributing to the UN 2030 Agenda and the objectives of the Paris Agreement on Climate Change. It also aims to consolidate the leading role of the Luxembourg financial center in the field of sustainable finance. It is ambitious in terms of Luxembourg’s contributions to sustainable development and to European and international climate initiatives and takes a forward-looking approach in terms of identifying future opportunities and challenges.
In response to UNEP FI’s recommendations, the Ministers have established a public-private entity, the “Luxembourg Sustainable Finance Initiative” to undertake further analyses based on the report findings, in order to develop a plan of concrete and adapted measures to be achieved over the coming years. The Initiative, which will bring together relevant actors in the field of sustainable finance, will be co-chaired by the Ministry of Finance and the Department of the Environment of the Ministry of Sustainable Development and Infrastructure. The entity will be the ideal forum for developing the National Strategy for Sustainable Finance for Luxembourg based on the key elements of the Roadmap. It will also serve as a discussion platform for analyzing the feasibility and impact of measures stemming from the recommendations.
Eric Usher, Head of UNEP FI, said: “Luxembourg is setting the course for sustainable finance to fulfil its critical role in achieving sustainable development. Sustainability is increasingly a performance driver, a trillion dollar investment opportunity that needs to be at the heart of the business strategies of banks, insurers and investors. This comprehensive study provides important guidance to Luxembourg, and other countries establishing roadmaps for a sustainable future. Luxembourg is demonstrating leadership by acting on two key recommendations of our report – developing a national sustainable finance strategy and creating a Sustainable Finance Initiative to co-ordinate implementation.”
The Minister of Finance Pierre Gramegna commented: “This roadmap builds on the strong collaborative spirit that exists here in Luxembourg between the financial center, the government and the civil society in the field of sustainable finance. It is thanks to the efforts of all these actors that Luxembourg has established itself as one of the European leaders in this field and continues to shape the future of sustainable finance”
The Minister for the Environnement Carole Dieschbourg added: “Implementing the Paris Agreement and the UN 2030 Agenda requires fundamental changes in the global financial architecture. I am convinced that the recommendations contained in this roadmap will contribute to rapidly shifting from high-carbon investments towards energy and resource efficient alternatives, based on renewable energy technologies.”