As a result, Luxembourg will be, once the bill voted in Parliament, the first country in the world to introduce a new category of green covered bonds (renewable infrastructure covered bond or “lettres de gage énergies renouvelables”).
- Create a legal framework with clear criteria and standards that will increase the confidence of potential investors in related products;
- Boost financing of environmental and climate protection projects (including renewable energy, waste, water treatment or e-mobility projects);
- Revitalize the Luxembourg Covered Bond market.
The Ministry of finance, Pierre Gramegna said: “the law will further strengthen Luxembourg’s position as a center of competence in the field of green finance”.