The Grand Duchy of Luxembourg joins GGGI’ to advance green, sustainable, and inclusive economic growth

The Grand Duchy of Luxembourg, a leader in climate and sustainable finance globally, was welcomed as the Global Green Growth Institute’s (GGGI) upcoming 51st Member State in a ceremony presided by H.E. Ban Ki-moon, the President of the Assembly and Chair of the Council of GGGI.

Luxembourg’s membership adds value by building partnerships with developing and emerging economies among GGGI’s Member States and highlighting the vital role the financial sector plays for implementing climate adaptation and mitigation measures, ensuring sustainable development and economic resilience.

The event took place at the MUDAM - The Contemporary Art Museum of Luxembourg and was attended by diplomats and representatives from the development, sustainability and financial sectors from Luxembourg and the neighboring countries.

“It’s a pleasure to welcome Luxembourg as an upcoming member after seven years of impactful collaboration with GGGI. We look forward to the next seven years and beyond for sustainable finance and green growth around the world,” H.E. Ban Ki-moon reflected.

Initiated by the Ministry of Environment, Climate and Biodiversity (MECB) in 2018, as part of Luxembourg's International Climate Finance Strategy (ICF), the first project in this cooperation aimed to improve climate resilience in rural Vanuatu by implementing solar-powered water pumps, training, and developing a national-level climate funding mechanism.

Following the initiation of projects in Senegal, Vietnam and Rwanda, in 2023, Luxembourg and GGGI have extended support to Small Island Developing States (SIDS), that are among the most vulnerable to the impacts of climate change. Through the SIDS Climate Action Program (SIDS-CAP), GGGI and Luxembourg are now advancing impactful climate adaptation and mitigation efforts in countries across the Pacific and the Caribbean.

“GGGI has been a strategic partner of the Ministry of Environment, Climate and Biodiversity since 2018, building real trust between institutions and delivering remarkable impact in the field of climate and biodiversity action and innovate sustainable finance in some of the most vulnerable countries around the world,” adds Minister Serger Wilmes.

In 2023 the Global Trust Fund on Sustainable Finance Instruments (GTF) was launched. Alongside with the Luxembourg Stock Exchange, the GTF is leveraging capital markets and building country-level capacity for sustainable finance. This has resulted in the successful mobilisation of USD 2.1 billion in climate finance in its first two years, supporting projects in 18 countries around the world. Climate action that has been financed by the thematic bonds supported by GTF include, amongst others, wastewater treatment in Cambodia, climate smart agriculture in Uzbekistan, renewable energy in Namibia.

In addition, following the inauguration of GGGI’s Luxembourg Office in 2023 at the Luxembourg House of Financial Technologies (LHoFT), the local team has focused on sustainable finance and carbon pricing, building connections and partnerships within Luxembourg’s dynamic financial ecosystem.

”Luxembourg’s upcoming membership to the GGGI reflects our strong and continued commitment to shaping a sustainable and inclusive global financial system. Through this strengthened partnership, we aim to deepen our contribution to innovative financial solutions that help unlock investment for climate resilience and green growth, especially in the most climate-vulnerable countries and regions,” emphasises Luxembourg's Finance Minister Gilles Roth.

As a result of the new membership, GGGI looks forward to further cooperation in support of low-carbon and climate-resilient development with the strategic engagement of the Government of the Grand Duchy of Luxembourg.