Luxembourg, May 29, 2018—IFC, a member
of the World Bank Group, and Luxembourg signed an agreement Tuesday that
will support the creation of new markets for climate finance in emerging
economies—by developing green-bond policies, training bankers and executives,
and helping countries adopt the Green Bond Principles and other best practices.
The government of Luxembourg will provide
€1 million to IFC’s Green Cornerstone Bond Fund Support Program, a technical
assistance program managed by IFC to complement the Amundi Planet Emerging
Green One Fund—the world’s largest targeted green bond fund focused on
Pierre Gramegna, Minister of Finance, said:
“I'm delighted to see that IFC chose Luxembourg as its strategic partner
for the implementation of the Green Cornerstone Bond Fund Support Program.
Building on the Luxembourg Stock Exchange’s expertise in the field of
Green bonds emission and structuring, this agreement will help to develop
new Green Bond markets in emerging countries. It is thus fully aligned
with Luxembourg’s pledge to leverage its financial center in the fight
against climate change."
“This support program builds on the foundations
of IFC’s strong partnership and shared values with Luxembourg,” said
Karin Finkelston, IFC Vice President of Partnerships, Communication, and
Outreach. “It will help bring best practices in climate finance to developing
countries, where green bonds are critical to fighting climate change.”
The Amundi Planet Emerging Green One fund,
which closed in March with IFC as a key investor, is expected to significantly
increase the scale and pace of climate finance in emerging markets by crowding
in capital from investors. The fund is listed on the Luxembourg Stock Exchange.
“Some wonder why we have all teamed up
for this project. The answer is simple: because the green financing markets
needs to progress aggressively and therefore it requires leadership. Leadership
in creativity, in innovation, leadership in triggering change in financial
markets,” said Robert Scharfe, CEO of the Luxembourg Stock Exchange.
Luxembourg and IFC have a long partnership.
To date, Luxembourg has provided about $28 million of cumulative funding
to support IFC’s advisory work on a global scale. In April, Luxembourg
agreed to provide a further $8.65 million (€7 million) to IFC’s Advisory
Services programs over the next four years.
Over the last decade, Luxembourg has taken
the lead in Europe in the field of green finance, with a special focus
on the bond market. The first ever green bond was listed in Luxembourg
in 2007, and today the Luxembourg Green Exchange displays almost half of
all listed green bonds worldwide.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY17, we delivered a record $19.3
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org.