- Luxembourg is tapping EIB Global expertise through the Luxembourg-EIB Climate Finance Platform (LCFP) to contribute €5 million to the Outrigger Impact Fund I.
- The Fund has a target size of $100 million and aims to provide finance to projects in various sectors of the oceans economy.
- Outrigger Impact Fund I will provide debt and equity financing to help Small Island Development States adapt to climate change and reduce greenhouse gas emissions.
Luxembourg is joining forces with the European Investment Bank’s development arm (EIB Global) to pledge €5 million through the Luxembourg-EIB Climate Finance Platform (LCFP) to help Small Island Development States (SIDS) tackle climate change. The Government of Luxembourg is making the commitment to a new fund dedicated to the sustainable use of ocean resources – an area of activity known as the “blue economy” – and EIB Global is managing the contribution to ensure its optimal use.
Luxembourg’s pledge will take the form of junior equity in the Outrigger Impact Fund I, which has a target size of $100 million and will be run by UK-based fund manager Outrigger Impact. The fund will operate in Small Island Development States, providing debt and equity finance to projects in various blue economy sectors such as sustainable aquaculture, ocean conservation, ecotourism and offshore renewable energy.
“This investment reflects our ambition to drive more capital towards climate resilience where it is most urgently needed. By backing the Outrigger Impact Fund I through the provision of junior equity, we aim to de-risk innovative projects in the blue economy and mobilise private finance at scale. This is a targeted use of public capital to unlock impact where markets alone would not go,” said Luxembourg Minister of Finance Gilles Roth.
“Over the last decade, Luxembourg has been committed to supporting the most vulnerable countries in the fight against climate change. Small Island Development States are disproportionally affected and face a finance gap at the same time. The blue economy offers an opportunity for SIDS to help adapt to climate change, protect and restore nature, while generating sustainable income for the most vulnerable communities,” said Minister of Environment, Climate and Biodiversity Serge Wilmes.
EIB Vice-President Ambroise Fayolle and Outrigger Impact Managing Director Simon Dent announced Luxembourg’s contribution at the 2025 United Nations Ocean Conference in Nice, France.
“Small Island Developing States are disproportionately at risk of the impacts of climate change and receive immeasurably less financing than other developing or low-income countries. That’s why this fund is important – at the portfolio level it is expected to multiply investments with a significant leverage,” said Vice-President Fayolle.
The involvement of Luxembourg and the EIB in the new fund advances an EU goal in its “Global Gateway Investment Agenda” to deepen worldwide cooperation on investment in areas including climate and the environment.
The investments by the new fund will reduce greenhouse gas emissions through clean transport, contribute to conservation of protected areas and coral reefs, and reduce pollution including plastics in the ocean. The financing will also increase the resilience of local communities to climate change.
The fund will leverage private investments and group projects across Small Island Development States to support new or small market players that are developing innovative business models backing the transition to a sustainable blue economy.
“This new fund will provide catalytic investment in projects, small and medium-sized enterprises and nature-based solutions in Small Island Development States. These states steward over 30% of our oceans through their exclusive economic zones, meaning that their blue economies, ecosystems and sustainable marine assets are full of environmental, social and economic potential,” said Outrigger Impact Managing Director Simon Dent.
Background information
About EIB Global
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by the Member States. It finances investments that pursue EU policy objectives.
EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world. Photos of EIB headquarters for media use are available here.
About the Luxembourg-EIB Climate Finance Platform (LCFP)
The LCFP is a de-risking platform initiated by the Government of Luxembourg in collaboration with the EIB that seeks to catalyse private sector investments in high-impact climate projects in developing countries.
About Outrigger Impact
Outrigger Impact is a specialised blue economy platform, which is developing a dedicated financing facility to build environmental and economic resilience and drive nature-positive outcomes in Small Island Developing States, by catalysing and leveraging the blue economy and enhancing the sustainability of ocean resources. The Outrigger Impact Fund will provide investment capital for blue economy projects in a range of Small Island Developing States, and the Outrigger Technical Assistance Facility will provide grants and concessionary loans to support early-stage projects in islands, with the common aim of delivering dedicated funding of more than $100 million to catalytic projects in island states.