Overview on green finance: where do we stand in Luxembourg?

ABBL Published 17.09.2018

On 11 September 2018, GSK Luxembourg organised and hosted a breakfast seminar, « Key Trends in Capital Markets : Green Finance » to gather sustainable finance experts from Luxembourg.

The conference room was full for the very interactive GSK panel on green finance to give the opportunity to Julie Becker, Member of the Executive Committee (Luxembourg Stock Exchange), Fabio Mandorino, Adviser, Sustainable Finance (ABBL) and Mario Mantrisi, General Manager (LuxFLAG) to animate a debate on green finance. The panel was moderated by Philipp Mössner, Partner (GSK Luxembourg S.A.).

Following a very interesting introduction on green finance in Luxembourg and a reminder of the main issues presented in the European Commission Action Plan on Financing Sustainable Growth by M. Mössner, the panelists discussed following topics :

  • The roles, missions and achievements of the ABBL, LuxFLAG and the Luxembourg Stock Exchange in the Luxembourg financial center in sustainable finance;
  • The strategy of the banking sector in contributing to mainstream sustainable finance;
  • The impact of sustainable finance in the Luxembourg financial center, I.e. more diversification, potential to reinvent or broaden existing banking businesses (private banking, retail banking, corporate banking)
  • The barriers: lack of definitions (the so called « taxonomy »), short termism, lack of policy, education and training at all levels (bond issuers, service providers, investors)
  • The potential actions to overcome barriers: training, education, disruption of old business models, sustainability as the unique value proposition.

The Luxembourg government, in close cooperation with the private sector, has embarked on a series of initiatives in order to stay ahead of the game in the field of climate finance and sustainable finance and to make the financial sector ever more sustainable in itself and in its activities.

From the systemic point of view

Luxembourg Green Exchange (LGX)
LuxFLAG (Climate Finance Label for investment funds, Green Bond Label)

Strategic Partnerships

Luxembourg-EIB Climate Finance Platform
Green Cornerstone Bond Fund (IFC-Amundi)
Green Climate Fund (GCF)
UNEP Inquiry

Innovation

International Climate Finance Accelerator Luxembourg (ICFA)
Forestry and Climate Change Fund (FCCF)

Luxembourg will continue to broaden the range of investment opportunities in sustainable finance, in full compliance with high international standards.

I would also like to thank the audience who demonstrated a huge interest during this event and provided the panel with useful insights and fruitful food for thoughts.

By Fabio Mandorino, Adviser – Commercial Banking I Private Banking I Sustainable Finance, ABBL

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