Luxembourg: first country in the world to introduce a law on green covered bonds

ABBL Published 19.01.2018
On 5 January 2018, the Luxembourg State Council (“Conseil d’Etat”) endorsed the draft bill on banks issuing covered bonds (banques d’émission de lettres de gage) amending the law of 5 April 1993 on the financial sector.

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”).

The law intends to:
  • 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”.

 By Fabio Mandorino, Adviser Private Banking, Commercial Banking and Sustainable Finance at the ABBL 

Contact

Association des Banques et Banquiers, Luxembourg

Address

12, Rue Erasme L-1468 Luxembourg

Phone Fax
Opening hours

Monday to Friday from 8h00 to 17h30.