06/09/2023 | Press release | Distributed by Public on 06/09/2023 10:20
The Global Green Growth Institute (GGGI), a treaty-based intergovernmental organisation, inaugurated its European Liaison Office in Luxembourg today. This new office is a significant milestone for the organisation, as it aims to facilitate exchanges between GGGI's Member States and European partners to support climate action and access to green and climate finance in Africa, Latin America and Asia.
The official inauguration ceremony of the European Liaison Office was held under the auspices of the Directorate for Development Cooperation and Humanitarian Affairs of the Ministry of Foreign and European Affairs, the Ministry of Finance, and the Ministry of the Environment, Climate and Sustainable Development of Luxembourg. During the event, the Minister for Development Cooperation and Humanitarian Affairs, Franz Fayot, stated: "Luxembourg's inclusive and innovative finance ecosystem is further strengthened by this new partnership with GGGI, which provides valuable expertise. Our joint program with GGGI allows us to strengthen our contribution to building more resilient, sustainable and inclusive economies in developing countries. By promoting innovation, investment, and collaboration across sectors and regions, we can create new opportunities for local communities while also protecting our environment".
The Minister of Finance, Yuriko Backes, emphasised that "Luxembourg advocates for collaborative efforts between governments and dedicated organisations like the GGGI to develop scalable solutions. Building on our past successful collaboration, Luxembourg and the GGGI can further promote the development of sustainable financial markets in developing countries and emerging economies. By directing investments towards low-carbon resilience projects and initiatives, our joint program is pivotal for fostering sustainable development. We are delighted that the GGGI has selected Luxembourg as its primary European Liaison Office, showcasing their dedication to our financial centre and thereby complementing the existing sustainable finance ecosystem".
The Minister for the Environment, Climate and Sustainable Development, Joëlle Welfring, reiterated "GGGI's expertise and skills in sustainable finance will complement the Luxembourg landscape of actors and players of the financial market who aim to push for a transition towards more social, ecofriendly, climate-resilient and just finance models. There is still a long way to go to make our financial centre fully sustainable. I think I can also speak for my colleagues − Minister Fayot and Minister Backes − by saying that we will continue to pursue this path decisively, and we are glad to count on the support and expertise of the Global Green Growth Institute. After all, it is only by working together collectively that we can substantially push forward this crucial topic."
Ban Ki-moon, President of the Assembly and Chair of the Council of GGGI, acknowledged the outstanding collaboration between GGGI and the Government of the Grand Duchy of Luxembourg. President & Chair Ban commended the significant and lasting impacts the collaboration is already creating in the fight against climate change and delivery of the Sustainable Development Goals. "This office in Luxembourg will play a crucial role in forging strong partnerships with stakeholders in Luxembourg and the region. This includes actors involved in sustainable finance in Luxembourg, as well as European institutions, NGOs, and universities to support all countries, including the most vulnerable countries," President & Chair Ban noted.
A major technical assistance and capacity building program was also launched at the event. The "Global Trust Fund on Sustainable Finance Instruments" program aims to help mobilise capital through the issuance of green bonds and other sustainable finance instruments. In partnership with LuxSE, this program, implemented by GGGI, will deliver tangible results in developing and emerging countries such as creating more than 400,000 jobs. It will strengthen the adaptive capacity of over 2 million vulnerable people to climate change and significantly reduce greenhouse gas emissions.
GGGI is a treaty-based international, inter-governmental organisation- with 45 Member States and over 22 countries and regional integration organisation(s) in the process of accession − dedicated to supporting and promoting strong, inclusive, and sustainable economic growth in developing countries and emerging economies. With operations in over 30 countries, GGGI's actions include capacity building, technical assistance, the design of bankable projects, the design of funds and financial instruments, including green bonds and other instruments, to support climate action and the achievement of ambitious climate goals defined within the Paris Agreement framework. The office in Europe will play a key role in engaging with European actors to deliver on the Paris Agreement. Further information on GGGI's events, projects and publications can be found on www.gggi.org.
The Directorate for Development Cooperation and Humanitarian Affairs of the Ministry of Foreign and European Affairs is one of the pillars of Luxembourg's foreign policy. Since 2009, the country invests 1% of its gross national income (GNI) into development aid, making it one of the five most ambitious developed economies in this field. Luxembourg's cooperation policy is based on targeted partnerships and underpinned by the key principles of reliability, commitment and expertise. It is geared towards the eradication of poverty, especially in the most vulnerable countries, and is consistent with the goal of sustainable development. For reasons of efficiency and impact, the Luxembourg Development Cooperation involves a policy of targeted intervention in a small number of partner countries. Priority areas for cooperation are education - including vocational training and access to employment -, health and local development.
The Ministry of Finance of the Grand Duchy of Luxembourg prepares and implements the budgetary, financial and fiscal policy of the State. In this capacity, the Ministry is also responsible for the public finances and the preparation of the budget. In addition, it defines the policy with regard to the financial sector, and is responsible for external relations with the various international financial institutions. Within the Ministry's mandate falls the development of the financial centre, including new and emerging areas such as Sustainable Finance and Financial Technologies. A large number of administrations are attached to the Ministry, such as the Luxembourg Inland Revenue and the Customs and Excise Agency.
The Ministry of the Environment, Climate and Sustainable Development coordinates Luxembourg's general policies in the fields of environment, water, climate and sustainable development. The MECSD has committed a budget of € 220 million specifically dedicated to climate action in developing countries for the period 2021-2025, through its Climate and Energy Fund. In addition to priority action areas such as "natural capital, biodiversity, forestry and land use", "resource efficiency and waste management", "clean air and water resources", "community-based adaptation and resilience", "climate change induced migration" Luxembourg's International Climate Finance (ICF) Strategy puts a particular focus on the "leveraging and mainstreaming of climate and sustainable finance". Luxembourg's ICF is additional to the country's official development assistance (ODA) and makes Luxembourg one of the largest per capita donors of international climate finance.
Press release by the Ministry of Finance, the Ministry of the Environment, Climate and Sustainable Development and the Directorate for Development Cooperation and Humanitarian Affairs