Luxembourg climate finance initiative invests €5 million in fund
The investment, which is part of a joint initiative between the EIB and the government, will focus on climate change mitigation in the Middle East and North Africa region.
A joint initiative between the European Investment Bank (EIB) and the Luxembourgish government will invest €5 million to support energy efficiency and renewable energy developments.
The announcement came during the UN Climate Change Conference – COP23 – which is taking place in Bonn, Germany where delegates from 197 countries are negotiating the implementation of the Paris Agreement.
The recently launched Luxembourg-EIB Climate Finance Platform (LCFP) will support developments in the Middle East and North Africa (MENA), investing in shares of the Green for Growth Fund (GGF) to enable the fund to leverage private financing.
Speaking at the conference on Thursday, Luxembourg's Finance Minister, Pierre Gramegna said being an important financial centre and unlocking private finance is a "key objective" for Luxembourg.
Environment Minister, Carole Dieschbourg, added that the initiative will finance three projects which would "otherwise struggle to attract private investment, especially climate adaptation projects in developing countries".
The Luxembourg-EIB Climate Finance Platform will fund high-impact climate action projects with strong environmental and development benefits and act as a catalyst for additional financing. Through its public-private partnership structure, the GGF is able to leverage public financial resources with private investments.
The €5 million investment will focus on climate change mitigation in the MENA region. In 2016, the GGF expanded to the region, where it sees a high demand for the implementation of energy efficiency measures and the development of renewable energy.
"The Luxembourg-EIB Climate Finance Platform and the project we’ve approved for MENA under the Green for Growth Fund is an excellent example of how the public sector can, through innovative solutions, help to attract private sector investment for high impact projects," EIB President Werner Hoyer said.
(Heledd Pritchard, heledd.pritchard@wort.lu, +352 49 93 459)
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