Luxemburger Wort – Luxembourg climate finance initiative invests €5 million in fund

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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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