The Luxembourg Sustainable Finance Initiative (LSFI) has launched its Luxembourg Sustainable Finance Strategy 2030, outlining its vision for advancing sustainable finance in the country over the next five years. The strategy follows the Luxembourg government’s 2023-2028 Coalition Agreement and aims to strengthen the country’s role as a hub for sustainable finance.
The strategy refines LSFI’s mission, positioning it as a centre of excellence and knowledge hub for sustainable finance, while also focusing on enabling financial institutions to finance the transition and tracking progress in the sector.
The initiative is structured around three key pillars. First, Building Expertise & Leadership, which aims to enhance knowledge of sustainable finance through coaching, research, and training.
Second, Unlocking Potential & Mobilising the Financial Sector, designed to foster collaboration between public and private entities to develop new financial solutions and increase capital mobilisation.
Third, Measuring & Communicating Progress, which will focus on leveraging data to track developments in sustainable finance and provide insights into industry trends.
Luxembourg’s minister of finance, Gilles Roth, said the launch comes at a “critical moment,” stressing the urgency of mobilising capital for sustainability efforts. “Global challenges such as climate change require finance to play a leading role in driving towards a sustainable economy,” he said.
Aligned with international frameworks
The strategy also aligns with international frameworks such as the Paris Agreement, the Agenda 2030, and the Kunming-Montreal Global Biodiversity Framework. Serge Wilmes, minister for the environment, climate and biodiversity, said sustainable finance is essential for ensuring a “just transition” and underscored Luxembourg’s role in global efforts.
The LSFI worked with consulting firm Oliver Wyman to develop the strategy, conducting an assessment of the country’s sustainable finance ecosystem and gathering insights from stakeholders.
Luxembourg, one of the world’s largest fund centres, has sought to establish itself as a leader in sustainable finance, with initiatives such as its Green Exchange, a dedicated platform for sustainable securities. The new strategy aims to reinforce the country’s position in the sector and provide a roadmap for financial institutions navigating regulatory and market shifts.
The LSFI was established in 2020 as a partnership between the ministry of finance, the ministry of the environment, climate and biodiversity, the Luxembourg for Finance agency, and the high council for sustainable development.
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