On 26 June 2017, the government announced the creation of a joint initiative between the government and a group of private actors. This initiative, known as the Climate Finance Accelerator, joins the three initiatives already implemented by the government to harness the expertise of the Luxembourg finance sector in the fight against climate change. The ultimate aim is to establish Luxembourg as a leader in the field of green finance.
The Climate Finance Accelerator is a joint initiative by the government and private actors, aimed at creating the structures required to support climate financing, by offering assistance to new and innovative investment fund managers that want to invest in projects with a measurable impact in the fight against climate change. Over the next three years, the government will contribute €2 million to the initiative, two thirds of the total amount made available by all the actors.
The idea and concept behind the Climate Finance Accelerator were created on the initiative of the government (Ministry of Finance and Ministry of Sustainable Development and Infrastructure) and a group of private actors (Arendt & Medernach, Deloitte, Elvinger Hoss Prussen, EY, Innpact, KPMG, LMDF and PWC), within the framework of the Climate Finance Task Force, a think tank that brings together public and private actors in Luxembourg, with the aim of promoting innovative ideas and strategic alliances to finance the fight against climate change and thus support the worldwide action plan to implement the Paris Agreement.
After the implementation of an investment platform between the Luxembourg government and the European Investment Bank(Luxembourg-EIB Climate Finance Platform), the creation of a dedicated LuxFLAGlabel as well as the Green Stock Exchange, the accelerator is the 4th initiative in this context, which will make it possible to develop the skills and expertise in Luxembourg on investment vehicles with an environmental and social impact and to develop and finance innovative projects with a high and measurable impact in terms of mitigation or adaptation to deal with the effects of climate change, both in developed countries and developing countries.
(Source: Ministry of Finance press release)