search

On 20 October 2017, the Luxembourg Ministries of Finance and Sustainable Development and Infrastructure, together with the BCEE, BIL and Foyer have launched the Forestry and Climate Change Fund (FCCF).

The public-private partnership will provide financing for companies, communities and small farmers to manage secondary and degraded forests in the tropics. By creating the enabling environment for business models that allow the generation of revenues, deforestation is stoppedand forest growth leads to a substantial positive climate impact.

An ambitious but essential target

The Paris climate agreement has established the ambitious but essential target to limit global warming to 1.5°C above pre-industrial levels. Part of the challenge is focused on changing the way we produce electricity, our mobility and industrial production. Another part of the challenge is to stop the conversion of forests to agricultural land and harness the power of growing forests to absorb greenhouse gas emissions from the atmosphere. Deforestation today contributes about 15% of annual greenhouse gas emissions which is why it is essential to convert forests from a source of carbon emissions to a mitigation tool against climate change.

At the launch event, Minister of Finance, Pierre Gramegna and Minister for the Environment, Carole Dieschbourg highlighted the importance of innovative financing solutions to leverage private capital on the fight against climate change.

Pierre Gramegna comments : ‘Attracting private capital remains one of the key challenges in the fight against climate change. As a founding shareholder in the investor share class of the Fund, the Ministry of Finance aims to create confidence in the market that green investments can generate a return while having a positive impact. The creation of an innovative fund such as the Forestry and Climate Change Fund is a further example for Luxembourg’s leading role as an international center for Sustainable Finance.’

Commenting on the launch, Carole Dieschbourg says: ‘The Forestry and Climate Change Fund is a significant example of international climate finance in the field of climate change adaptation and forestry, an area in which private investments still remain exceptional. The new fund combines in an exemplary way sustainable land and forest management whilst providing economic, ecological and social development opportunities in Central America, in particular in Costa Rica, Guatemala and Nicaragua. This will allow implementation of the Paris agreement on climate as well as the 2030 agenda for sustainable development.’

Finally, Kaspar Wansleben, Executive Director of the fund, says : ‘The team behind the creation of the Forestry and Climate Change Fund is very proud that today, a Luxembourgish alliance of public and private investors have decided that the time is ripe for an ambitious investment to combat climate change and help mitigate land degradation in Central America.’

Read more

Echternach hopping procession: intangible UNESCO heritage

01-06-2023

Anyone passing through the Luxembourg town of Echternach on Whit Tuesday might have seen a curious sight: thousands of people, mainly dressed in black and white, hopping through the town’s medieval streets to a polka melody. This tradition, whose roots go back to the 15th century, has been recognised as an Intangible World Cultural Heritage by UNESCO.
Read more

Why choose Luxembourg for business? Discover our new video

31-05-2023

Have you ever considered benefitting from Luxembourg as the launch pad to the European market for your international company? Join us in our innovative virtual studio to discover why you should!
Read more

Applying for EIC Accelerator funding: How to succeed

30-05-2023

The EIC Accelerator is one of the most prestigious and attractive, but also one of the most competitive, funding instruments of Horizon Europe for individual start-ups and small companies developing and scaling up game-changing innovations. Three former Fit 4 Start participants who have received funding shared their best advice about do’s and don’ts at the Fit 4 Start Alumni event held on 25 May 2023.
Read more

Webasto invests in new production line in Luxembourg

26-05-2023

Automotive supplier Webasto has been present in Luxembourg since summer 2022 and is turning the facility here into its global centre of competence for smart glazing. The company is now investing in a new Luxembourg-based production line for high-tech glass. The ground-breaking ceremony was held on 24 May 2023.
Read more

House of Sustainability opens in Luxembourg

23-05-2023

The House of Sustainability, which officially launched on 21 April 2023 as a one-stop shop for all sustainable development solutions in Luxembourg, offers and guides companies toward an all-inclusive service offering available in Luxembourg to support their sustainable transition. Companies of all sizes and from all sectors can benefit from a vast ecosystem of sustainable solution providers based in Luxembourg.
Read more

All news

Close