On 12 December 2017, the Prime Minister, Xavier Bettel, and the Minister of the Environment, Carole Dieschbourg, went to the One Planet Summit in Paris, organised by the President of the French Republic, Emmanuel Macron, in conjunction with the United Nations and the World Bank. The summit brought together political and economic decision-makers in order to address the issue of financing climate protection initiatives.
Luxembourg leads the fight
Against this background, Luxembourg presented its initiatives to achieve the third objective outlined in the 2015 international climate agreement. Namely, to align cash flows with developing low greenhouse gas emissions:
- a platform aimed at making investments available for high impact projects in the fight against climate change. This platform is the result of a collaboration between the Luxembourg government and the European Investment Bank (EIB) - €30 million will be invested for this purpose;
- the Green Cornerstone Bond Fund, an investment fund targeting green bonds issued by banks in Africa, Asia, the Middle East, Latin America and Eastern Europe has been launched in partnership with the World Bank International Finance Corporation;
- the Climate Finance Accelerator, which aims to professionalise fund managers in the field of green finance.
These initiatives are part of Luxembourg's strategy to combat climate change in the field of international finance. Luxembourg Green Exchange (LGX), founded in September 2016, is the first platform entirely dedicated to green, social and sustainable financial instruments. With 133 green bonds of an accumulated value of €63 billion, the new green section of the Luxembourg Stock Exchange is the world leader on the market with almost half of all listed green bonds.
A shared commitment that will no go unheeded
The summit was part of the process of implementing the Paris Agreement and addressed in particular the issue of financing climate actions and aligning cash flows to achieve the Paris Agreement's objectives - both in terms of reducing greenhouse gas emissions and protecting populations from the effects of climate change.
in 2015, 195 countries gathered at the Paris Climate Change Conference (COP21) and agreed on an international climate agreement. The goal was clearly defined: to limit global warming to between 1.5°C and 2°C by 2100.
(Source: press release of the Ministry of State)