COP25: Luxembourg-EIB joint event at COP today - Scaling up private finance for climate action
9 December 2019
At the UN Climate Change Conference in Madrid, the Grand Duchy of Luxembourg and the European Investment Bank, the EU bank, organised a side-event to discuss challenges and solutions to scale up private finance for climate action.
During a keynote conversation, EIB President Werner Hoyer and Pierre Gramegna Minister of Finance of Luxembourg, stressed the need for increased partnership and cooperation between the public and private sector to meet the goals of the Paris Agreement and looked back on the successful partnership between the Luxembourg and EIB in mobilising finance to tackle climate change
The event highlighted the Luxembourg-EIB Climate Finance Platform, as an innovative example to mobilise private finance for climate action. The Luxembourg-EIB Climate Finance Platform, a fund endowed with an initial EUR 30m by the Grand Duchy, has been investing in projects with a strong impact in the fight against climate change since 2017.
The partners announced the launch of the second phase of the LCFP that run for another five years until the end of 2024, with Luxembourg committing another EUR 40 million to the fund.
In the second panel, EIB Vice President Emma Navarro joined Carole Dieschbourg, Minister for the Environment, Climate and Sustainable Development, Luxembourg, José Carlos García de Quevedo, Chairman, Instituto de Crédito Oficial and Javier Manzanares, Deputy Executive Director, Green Climate Fund to discuss concrete examples of innovative climate finance solutions from around the world.
The Grand Duchy of Luxembourg and the EIB launch the Luxembourg-EIB Climate Finance Platform, aiming to mobilise investments for projects with a strong impact in the fight against climate change. The platform will contribute to the implementation of the Paris Agreement and is a tangible step towards compliance with both Luxembourg’s international commitments and the EIB’s Climate Strategy. It is the first time a Member State enters into such a partnership for innovative climate finance with the EIB and it establishes further Luxembourg as a green financial centre.
The Luxembourg – EIB Climate Finance Platform has been welcomed as an international model for increasing climate investment using limited public sector support and representing a key step to tackle the challenge of limited equity investment in climate projects. The new initiative will enable climate focused investment funds to support high-impact climate projects around the world and bring in additional support from private investors who otherwise could not back more challenging climate schemes.
The Grand Duchy of Luxembourg and the EIB have committed to working ever more closely together on two of their joint priorities: the development of the microfinance sector in ACP countries and the fight against climate change. At the EIB’s annual Donors Conference, taking place in Luxembourg today, they launched a Financial Inclusion Fund, dedicating EUR 3.6m to support for micro and small businesses in Africa, the Caribbean and the Pacific. They also agreed to extend the Luxembourg-EIB Climate Finance Platform, which was originally established in 2017 for three years.