Ministries Carole Dieschbourg and Pierre Gramegna signed yesterday the creation of the first phase of the « Climate Finance Accelerator ». This accelerator aims to create the necessary structures to facilitate climate finance, by offering support to those new and innovative asset managers, who wish to invest in efficient, impactful projects and demonstrate their contribution to the fight against climate change.
The support granted by the accelerator is two-fold: fundraising support to attract both institutional and public investors, being Luxembourgish and international; and financial and operational support during the start-up phase.
Pierre Gramegna: "the launch of the 'Climate Finance Accelerator', set-up by the Ministry of Finance together with the Ministry of Sustainable Development and Infrastructures and eight private partners, sets a new milestone for the development of green finance in Luxembourg and highlights the important and forward-thinking role of our financial place in the field. This initiative will reinforce the already very strong mobilization of the financial ecosystem in favour of green finance, and will encourage the development of sustainable asset managers in Luxembourg."
The idea and the concept of the « Climate Finance Accelerator » were initiated by the Government and a group of private actors (Arendt & Medernach, Deloitte, Elvinger Hoss Prussen, EY, Innpact, KPMG, LMDF and PWC) and fall within the Framework of the Climate Finance Task Force, a think tank gathering public and private actors in Luxembourg, with the objective of promoting innovative solutions and strategic alliances to finance climate actions and support the global action plan and implementation of the Paris Agreement.
“We benefit from a leading-edge expertise in terms of structuration of funds and support small asset managers, it seemed obvious to contribute our expertise to innovative and promising funds managers, to enable them to create their project in the best conditions, in a regulated and secured environment for their investors. Hence, giving these projects the best chances to succeed” outlines Corinne Molitor from Innpact, coordinator of the working group.
Following the implementation of an investment platform between the Luxembourg government and the European Investment Bank (EIB-Climate Finance Platform), the creation of a dedicated LuxFLAG label as well as the Green Stock Exchange, the Accelerator is the fourth initiative in this context to highlight the skills and expertise in Luxembourg for investment vehicles with environmental and social impact and to develop and finance innovative projects with high impact in addressing the effects of climate change, both in developed and developing countries
Carole Dieschbourg: “Talking about the Paris Agreement, we tend to focus on measures to reduce Greenhouse Gas Emissions and limit Global Warming and efforts to adapt to the negative effects of climate change. We should not forget, however, that the third objective of the Paris Agreement, is to facilitate financial flows to foster a transition to a low-carbon economy and resilient to the impact of climate change”.