220 million for international climate aid over the period 2021-2025!
Considerable financial aid is needed to support the poorest countries in the fight against climate change. Luxembourg has been contributing to this for a number of years. In the run-up to the world climate summit in Paris (COP21), the government approved climate funding amounting to €120 million - in addition to official development assistance (ODA).
Between 2021 and 2025, the budget devoted to international aid will amount to 220 million euros. This makes Luxembourg the country making the largest contribution per capita in the world.
These funds make it possible to finance and support international projects and initiatives such as the Green Climate Fund and Luxembourg-based non-governmental organisations. It goes without saying that the main focus should be on helping the least developed countries to adapt to the climate and supporting measures to reduce climate change, including African countries and Small Island Developing States (SIDS).
Luxembourg ensures a balanced distribution between adaptation (59%) and mitigation (41%) activities among its sixty ongoing projects. The current geographical distribution of commitments also reflects this balance:
- Africa: 35 %
- Asia/Pacific: 31 %
- Latin America and Caribbean: 20 %
- Global initiatives: 14 %
Luxembourg's commitment continues: the new envelope for the period 2026-2030 will amount to 320 million euros, accompanied by the development of a new strategy for international climate financing. This confirms Luxembourg's determination to remain a key player in the fight against climate change, given the urgency of the situation and the need to speed up the transition to a more resilient future that is compatible with the objectives of carbon neutrality.
Our strategy for international climate finance
General submission model for ICF 2021-2025 funding
Sample submission from Luxembourg NGOs for ICF 2021-2025 funding
Here are a few examples of projects currently supported by our international climate financing:
In 2018, Luxembourg signed an agreement with International Union for Conservation of Nature (IUCN) for the implementation of the Blue Natural Capital Financing Facility (BNCFF). The BNCFF focuses on coastal ecosystems as key providers of biodiversity and ecosystem services. It aims to target commercial opportunities and value creation in the coastal natural capital economy, integrating coastal science and marine data technology and exploiting opportunities to create policy frameworks for climate change and experience for project finance. The BNCFF aims to mobilise donor funds to attract new private investment for sustainable coasts. Blue Natural Capital« projects aim to protect, restore and enhance natural ecosystems to better support climate change adaptation and mitigation efforts while conserving biodiversity and other vital coastal and marine natural resources. The projects aim to use an innovative blended finance model to access different financial flows and attract new investors.
For more information, click here here.
The archipelago, located in the west of the African continent, suffers from drought and is economically very fragile. There has been a development cooperation partnership between Cape Verde and Luxembourg since the late 1980s. In 2002, the first Indicative Cooperation Programme (ICP) between the countries was launched. In order to better coordinate development measures with each other and with other policy areas, and to make them more effective, the current fifth ICP (2021-2025) is under the banner of a «whole-of-government approach», in which, on the Luxembourg side, the Ministry of Foreign Affairs, the Ministry of the Environment and the Ministry of Energy are participating with their respective expertise. In addition to poverty eradication and sustainable development, the aim of the CIP is to provide Cape Verde with greater support in terms of climate and energy transition. The Ministry of the Environment has made available a budget of 10 million euros over the next five years just for the development and implementation of various measures to protect the archipelago's climate.
For more information, click here here.
CIFOR-ICRAF (Center for International Forestry Research and World Agroforestry) is an international research organisation focused on nature-based solutions (NbS) to global challenges related to climate, biodiversity and sustainable development. Since 2021, Luxembourg has been working with CIFOR-ICRAF to strengthen its ambitions for sustainable finance in developing countries.
The first step in this collaboration was the signing of a grant agreement for the implementation of the Luxembourg-Global Landscapes Forum (GLF) Finance for Nature Platform. This initiative aims to promote knowledge sharing and capacity building to accelerate the development of scalable financing models for nature-based solutions (NBS) in developing countries.
In 2025, a new subsidy agreement was signed for the launch of Resilient Landscapes Luxembourg. The aim of this programme is to incubate concrete, large-scale, science-based NbS projects in order to mobilise high-quality private investment in developing countries.
These two initiatives are part of Luxembourg's strategy to promote ambitious green and climate finance, by supporting innovative and sustainable solutions for adapting to and mitigating the effects of climate change.
For more information, click here here.
La Luxembourg-Global Landscapes Forum (GLF) Finance for Nature platform, implemented by CIFOR-ICRAF, was launched in March 2021 under an agreement signed with the Ministry of the Environment, Climate and Biodiversity (MECB). It aims to support Luxembourg's sustainable finance ambitions, with a particular focus on nature-based solutions (NbS), climate change, ecosystem restoration and biodiversity.
The main objective of the platform is to catalyse and accelerate the mainstreaming of sustainable finance through knowledge sharing and capacity building activities. It seeks to channel financial flows towards sustainable, equitable, inclusive and profitable land-use models, thereby helping to bridge the financing gap to meet climate, biodiversity and land degradation targets.
For more information, click here here.
Resilient Landscapes Luxembourg (RLL) is a joint initiative between CIFOR-ICRAF and the Luxembourg Ministry for the Environment, Climate and Biodiversity (MECB), officially launched in 2024 at UNEA-6. It is part of Luxembourg's international climate finance strategy (2021-2025) and the National Biodiversity Action Plan (2022-2030).
RLL is an innovative technical assistance entity that aims to transform science into high-impact investment opportunities in nature-based solutions (NbS) in developing countries.
The impact of RLL is twofold:
- A portfolio of high-quality NbS projects, incubated thanks to the scientific expertise of CIFOR-ICRAF and a dedicated funding mechanism. These projects benefit from technical support to improve decision-making and reduce the risks associated with investments.
- A new type of player in the green finance sector, capable of mobilising private investors around NbS projects based on scientific data, while generating synergies with specialised players in Luxembourg and internationally.
For more information, click here here.
The Global Green Growth Institute (GGGI), based in Seoul, is an intergovernmental organisation created in 2012. Its mission is to promote sustainable and inclusive economic growth by helping developing countries transform their economies towards a green growth model. The GGGI is helping to achieve the 17 United Nations Sustainable Development Goals (SDGs) and to implement the Nationally Determined Contributions (NDCs) to the Paris Climate Agreement.
With an annual budget of more than USD 100 million, the GGGI currently has 48 member states and has mobilised more than USD 10 billion to support developing countries. Its activities focus on four key areas: energy, water, land use and sustainable urban development.
Since 2016, Luxembourg has been working with the GGGI to implement climate projects. The first agreements for the implementation of these projects, financed via the envelope dedicated to international climate finance (FCI) of the Climate and Energy Fund, date from 2018. To date, Luxembourg has invested around €19.6 million from its FCI envelope.
In 2022, an agreement was signed to establish the GGGI's legal status in Luxembourg, and in 2023, the GGGI's European liaison office was inaugurated in Luxembourg. This strategic presence aims to facilitate exchanges between GGGI member states and European partners in order to support the fight against climate change and access to green and climate finance.
This programme supports the implementation of the GGGI's work in the Small Island Developing States (SIDS) of the Pacific (70%) and the Caribbean (30%) in line with the objectives of Luxembourg's international climate finance strategy.
The programme aims to strengthen the development and adoption of policies and strategies that support long-term sustainable transformations, by removing barriers to investment and stimulating climate investment flows.
It also supports the implementation of robust investment plans, the development of innovative financing models and the mobilisation of green financing, while building capacity and sharing knowledge between SIDS at national, regional and global level.
This programme aims to strengthen green finance ecosystems in six countries by supporting regulators in developing regulatory frameworks and guidelines aligned with international standards, in order to mitigate perceived risks, remove barriers to the issuance of thematic bonds and stimulate their development.
In partnership with LuxSE, it is also supporting the capacity building of 400 public and private players - including 50 % women - through webinars, practical training and international learning networks, while supporting the issue of thematic bonds and producing knowledge tools shared with ICMA members and other stakeholders.
Launched in 2018, the project aims to strengthen the resilience of Vanuatu's rural communities to the effects of climate change, such as prolonged periods of drought and intensified tropical cyclones. It is based on the installation of solar-powered water pumping systems, as well as institutional capacity building for sustainable management of water resources and solar pumping infrastructure in the long term. The project is part of an integrated approach combining technical solutions and institutional support to promote sustainable resilience at community level.
Implemented by the Global Green Growth Institute (GGGI), the Green Bond Readiness Program aims to develop the green bond market in Vietnam by filling gaps in policy, capacity and market maturity. The programme is run in collaboration with the Vietnamese Ministry of Finance and key partners, including those based in Luxembourg.
The project aims to promote integrated approaches to sustainable waste management and circular economy models, including the provision of treatment equipment, the recovery of organic, plastic and electronic waste, and the reduction of greenhouse gas emissions, while supporting policy framework reform and capacity building through skills development and knowledge exchange.
The Global Climate Risk Shield, launched at COP27 in November 2022, aims to strengthen the resilience of climate-vulnerable countries through pre-arranged financing tailored to local needs. It builds on existing structures to ensure a rapid response to disasters and accelerate economic recovery.
Luxembourg is supporting this initiative through a contribution from the MECB to the Global Shield Financing Facility (GSFF), hosted by the World Bank, and the Global Shield Solutions Platform via the MAEE. The GSFF finances projects integrated into World Bank programmes and can transfer funds to accredited multilateral organisations.
For more information, click here here.
Launched in 2018, the project aims to develop innovative economic models for waste recycling and recovery in three Senegalese cities - Tivaouane, Touba and Dakar - with the ambition of creating green jobs and improving the quality of urban sanitation.
By focusing on plastic waste, wastewater and waste electrical and electronic equipment (WEEE), the project aims to generate sustainable impacts on the environment, employment and behaviour, while promoting fair and reliable access to environmentally responsible waste management services.