Luxembourg and the European Investment Bank have extended their Climate Finance Platform for another five years. The initiative will now run through 31 December 2024 and has been opened to other donors.
The programme was launched in 2017 to run for 3 years with an initial capital amount of €30 million.
EIB and Luxembourg’s Ministries of Finance and Foreign and European Affairs have provided an additional EUR40 million to fund projects with a strong impact in the fight against climate change.
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Luxembourg and EIB have also launched the Financial Inclusion Fund and dedicated €3.6 million to support micro and small businesses in Africa, the Caribbean and the Pacific.
Wener Hoyer, president of EIB, said: “Luxembourg is not only the host of the European Investment Bank, it is also one of our key bilateral donors. Our continued fruitful cooperation shows that the EU bank is especially suited to supporting the individual development goals of EU countries and private donors. We address critical funding gaps by blending loans with grants from our partners. These innovative blending solutions ensure a high impact – for donor countries and institutions as well as for people in the project regions.”
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Pierre Gramegna, Minister of Finance of Luxembourg added: “Donor governments can make a vital contribution to the EIB’s work by providing funds that leverage private capital, bridge the financing gap and de-risk projects in developing countries. Luxembourg and the EIB have an impressive track record in innovative financial solutions like the EIB-Luxembourg Climate Finance Platform which contributes to climate change mitigation and adaptation. I welcome the two initiatives that are being signed today as they will further strengthen our cooperation aiming to achieve the Sustainable Development goals.”
Luxembourg’s Minister for the Environment, Climate and Sustainable Development, Carole Dieschbourg, commented: “Collective climate action by governments and businesses will lead to the achievement of about 75% of the commitments set out in the Paris Agreement. This shows why we must aim for successful, fair and transparent cooperation if we want to build a safe and climate-resilient future. The Luxembourg Government commits to reaching net-zero greenhouse gas emissions by 2050. The National Strategy for Sustainable Development, the National Energy and Climate Plan, the Luxembourg Sustainable Finance Roadmap and the Climate Pact are among the key strategies for meeting our ambitious targets. Luxembourg is one of the biggest per-capita contributors to international climate finance – and this comes on top of our ODA amounting to 1% of the GDP.”