Luxembourg

The European Investment Bank (EIB) and the International Climate Finance Accelerator Luxembourg (ICFA) have signed a Memorandum of Understanding (MoU) to strengthen their collaboration on climate action funding.

The two will promote and expand climate finance in Europe and beyond.

Eligible funds focus on climate mitigation, climate adaptation and REDD+.

ICFA Luxembourg supports emerging fund managers focusing on innovative climate finance investments with high environmental and social impact.

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The initiative seeks to help fund managers in their startup phase by creating an attractive and supporting environment for them. It is part of Luxembourg’s Climate Finance Strategy and is supported financially by the Ministry of Finance and the Ministry for the Environment, Climate and Sustainable Development and by the expertise of 10 private sector partners.

The EIB will share its expertise, providing fund managers with coaching services, training sessions and capacity building.

EIB vice-president Emma Navarro said: “I am very pleased to sign this agreement with the International Climate Finance Accelerator Luxembourg. Coaching the new generation of innovative climate fund managers through an accelerator such as ICFA Luxembourg is essential to supporting and boosting the green investments of the future.

“By sharing the EIB’s expertise with them we play our role as the EU climate bank and contribute to mobilising private finance towards projects that are key to achieving a low-carbon economy and to increasing the resilience of our societies to climate change.”

Pierre Gramegna, Minister of Finance of Luxembourg, said: “The International Climate Finance Accelerator has been another important success for the Luxembourg Climate and Sustainable finance ecosystem. Since its launch in 2018, 14 burgeoning climate fund managers from different parts of the world have benefited from the programme, with two of them having already launched their climate impact fund.

“Luxembourg’s efforts to support innovative climate fund managers are thus bearing fruit. This new MoU with the EIB, Europe’s climate bank, will be an important step to further strengthen and broaden the ICFA’s reach and impact, and will thus give an additional boost to developing climate finance expertise in Luxembourg and around the world.”