PwC Luxembourg partner Steven Libby is pictured speaking at Alfi alternative investment funds conference in September 2014
Photo: Steve Eastwood/archives
Following the Paris Climate Agreement, global interest in sustainable finance has increased, with the demand for green investment products growing rapidly.
Green finance, formerly a niche product, now has the potential to become a substantial market and Luxembourg, as a financial centre in the heart of Europe, is set to become the domicile of choice for green financial products, having already taken several pioneering steps in this direction.
Steven Libby, partner and asset & wealth management leader at PwC, describes green finance as: “Financing investments that provide environmental benefits in the broader context of environmentally sustainable development.”
Speaking at the Green Finance Day organised by PwC at its Crystal Park offices on Thursday 29 March 2018, he went on to describe the ways Luxembourg is pioneering this market and how it is already a leader when it comes to responsible investment:
“Luxembourg has the leading European market share when it comes to responsible investment funds, at 39%. 69% of worldwide assets in microfinance investment vehicles are Luxembourg domiciled funds, and Luxembourg holds 45% of assets under management in remaining environmental strategy funds.”
He went on to list some of the innovate steps Luxembourg has already taken towards becoming the green domicile of choice.
“The Luxembourg Green Exchange (LGX), a dedicated platform for green, social and sustainable securities, was launched in 2016 and today counts 170 securities. In June 2017, the European Investment Bank (EIB) celebrated the 10th anniversary of the first even green bond listing that occurred in Luxembourg, the ‘Climate Awareness Bond’.”
“Green finance has developed from a niche to a substantial market, which, in 2017 surpassed USD 150 billion of annual issuance.”
If Luxembourg’s track record with Ucits (which are 30 years-old on 30 March) is anything to go by, there is a bright green future ahead.