(L-R) Jennifer de Nijs, LEIF President; Xavier Bettel, Luxembourg’s Deputy Prime Minister; Gilles Roth, Luxembourg's Finance Minister; Yasmine Fouad, Executive Secretary of the United Nations Convention to Combat Desertification; Credit: MFIN

Luxembourg’s Deputy Prime Minister and Minister of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, Xavier Bettel, together with Finance Minister Gilles Roth and Yasmine Fouad, Executive Secretary of the United Nations Convention to Combat Desertification (UNCCD), signed an agreement for the creation of the Drought Resilience Investment Facility (DRIF) on Wednesday 17 September 2025.

According to Luxembourg’s Ministry of Finance and Ministry of Foreign and European Affairs, Defence, Development Cooperation and Foreign Trade, the DRIF aims to mobilise around USD 400 million (€374 million) to support sustainable agriculture, improve access to water and promote nature-based solutions. Luxembourg is contributing €2 million towards the facility, reflecting the country’s commitment to multilateralism and sustainable finance.

The ministries noted that 40% of the world’s land is currently affected by drought, already impacting one in four people. If left unaddressed, projections show that by 2050 three out of four people could face water shortages. This crisis is described as both environmental and human, worsened by conflict and climate change and exacerbating food insecurity, forced migration and social inequality.

The DRIF builds on Luxembourg’s long-standing commitment to the United Nations Convention to Combat Desertification, adopted in 1994 and ratified by Luxembourg in 1996.

Minister Roth stated: “Through this initiative, we reaffirm Luxembourg’s commitment to mobilising private and public capital to make the world more sustainable and to build a more resilient future in the face of droughts.”

Minister Bettel added: “Luxembourg remains determined to devote 1% of its GNI to official development assistance, thus demonstrating its commitment to international solidarity. Through this initiative, we reaffirm our attachment to multilateralism and to working with United Nations organisations to advance innovative ideas and mobilise Luxembourg expertise in support of sustainable development.”