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

Luxembourg wood value chain (1/3): A growing ecosystem

29-11-2023

The new Luxembourg wood ecosystem mapping by Luxinnovation shows an increase in the number of companies. It also reveals that almost 20% of wood businesses were incorporated in the last four years.
Read more

Entering the European market with ease

29-11-2023

In recent years, Luxembourg has emerged as a dynamic hub for innovation, boasting a robust ecosystem that encompasses a multitude of incubators, accelerators, specialised agencies, investors, and innovation hubs. This thriving ecosystem has played a pivotal role in nurturing and propelling numerous successful enterprises across diverse industries onto the global stage. Top executives leading some of Luxembourg’s key structures explain what the ecosystem offers and why this might just be the smartest and most cost-effective way for a soft-landing and to gain a foothold in foreign markets.
Read more

A gateway to Europe from Japan

28-11-2023

A delegation made up of nine innovative Japanese companies is currently visiting Luxembourg from 27 to 29 November 2023, hosted by Luxinnovation and the House of Entrepreneurship. Their objective is to find out how they could benefit from Luxembourg as a gateway to Europe and find partners who could help them expand their business to the European market.
Read more

Pioneering “gamified neuroscience” for brain disorders

27-11-2023

Luxembourg-based company Myelin-H is developing a revolutionary software technology for the remote monitoring and management of neurological disorders. The company’s CEO, Zied Tayeb, sheds light on the company’s mission to make a difference and how a personal story sparked the conception of his startup.
Read more

Innovation Fund call for projects significantly reducing carbon emissions open

27-11-2023

The European Union’s Innovation Fund is a cornerstone in the EU’s commitment to combat climate change while promoting groundbreaking solutions in decarbonising industry. The deadline for the open call for projects is 9 April 2024, while the auction for renewable hydrogen project closes on 8 February 2024. The Luxinnovation team is available to inform and support applicants.
Read more

All news

Close