Luxembourg and the European Investment Bank to Cooperate in Joint Fund for Green Energy

Written by: Bridgewest

Luxembourg is one of the most modern economies in Europe which is why it very important for the government to create a sustainable environment where companies and people can develop. One of the emerging industries in which the government is willing to invest is renewable energy which is why the central authorities and the European Investment Bank (EIB) have set up a fund for the development of renewable energy resources. If you want to set up a business in the renewable energy sector, our Luxembourg lawyers can advise you.

Luxembourg and EIB’s fund is based on the Paris Agreement

With 197 countries signing the Paris Agreement, the joint fund to be set up by Luxembourg and the European Bank is worth 5 million euros and will invest in energy efficiency and renewable energy resources. The fund is called the Luxembourg – EIB Climate Change Platform (LCFP) and is meant to support developments in the MENA (Middle East and North Africa) region.

Private investors are expected to invest in the fund through the Green for Growth Fund and thus enable more financing options for those seeking to start businesses in the renewable energy sector.

For Luxembourg, the initiative fits like a glove considering the launch of the Green Stock Exchange which has recently marked the first year since its creation and a huge success at the same time.

Our lawyers in Luxembourg can explain the requirements related to listing on the Luxembourg Stock Exchange.

The fund will finance three important projects

Even if the renewable energy sector attracts many foreign investors, the costs generated by setting up this type of business venture are quite high which is where the fund will help. The LCFP will help private investors gather funds related to climate adaptation projects in the MENA region.

Luxembourg is a renowned financial center and one of its main objectives is to unlock financing for all types of projects which is why the success of the initiative is almost guaranteed. Also, the LCFP will prove quite successful for investors who will have a wide array of financial instruments to invest in and thus diversify their portfolios.

If you want to set up an investment fund in the Grand Duchy, do not hesitate to contact our law firm in Luxembourg.