Finance

A first anniversary crowned with success for Luxembourg Green Exchange

The Luxembourg Green Exchange platform is celebrating its first anniversary and unequalled success.

12-greenLuxembourg 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. With only 1% of the global bonds market, green finance is only just beginning. Since it started in 2007, it has experienced an incredible expansion.

Strict quality control

Luxembourg Green Exchange was launched a few months after the COP 21 Paris Climate Conference. It takes advantage of a 'green' movement and meets the requirements of investors in terms of the environmental aspect of their investments.

By applying very strict eligibility criteria, Luxembourg Stock Exchange wants to control the quality of the bonds listed. It thus guarantees the transparency of the securities and provides certainty for issuers and investors that the listed securities are genuinely green, social and sustainable.

During the application process, the issuers must clearly indicate the green nature of the bonds and the funds raised must be used exclusively to finance projects which are 100% green, social or sustainable. In addition, the issuers commit to submit reports at regular intervals.

Access to the LGX will be refused to securities falling in a number of listed categories, including the production of nuclear energy, trading in protected flora and fauna, experiments on animals for cosmetics and other non-medical products, medical tests on species facing extinction, and fossil fuels.

The LGX concept was developed according to the best practices established by the Climate Bonds Initiative (CBI) and the International Capital Market Association (ICMA).

 

(Article written by the editorial team of the luxembourg.lu portal)

  • Updated 17-10-2017