Yuriko Backes, Minister of Finance; Frank Rijsberman, CEO of the GGGI; Jean Asselborn, Minister of Foreign and European Affairs; Joëlle Welfring, Minister of the Environment, Climate and Sustainable Development; Credit: MAEE

On Wednesday 22 June 2022, Luxembourg's Minister of Foreign and European Affairs, Jean Asselborn, and the Director-General at the Global Green Growth Institute (GGGI), Frank Rijsberman, signed an agreement that will provide GGGI with the necessary legal and institutional status to allow it to establish an office in Luxembourg.

The ceremony was held in the presence of Minister of Finance, Yuriko Backes, and Minister for the Environment, Climate and Sustainable Development, Joëlle Welfring.

Minister Asselborn said: "The Agreement we signed today is a significant win-win for both the GGGI and Luxembourg. It paves the way for the establishment of the GGGI's office in Luxembourg, allowing the GGGI to fully benefit from the existing sustainable finance ecosystem in the Grand Duchy, while further strengthening the position of the Grand Duchy as an attractive and welcoming host State to international organisations."

Established at Rio de Janeiro in 2012, GGGI is an international and intergovernmental organisation that supports its members in the transformation of their economies to a green growth economic model.

The collaboration between Luxembourg and GGGI started in 2018 on the initiative of the Ministry of the Environment, Climate and Sustainable Development (MECSD), in the context of the Luxembourg International Climate Finance Strategy. Since then, Luxembourg and GGGI have been working together on numerous projects, all financially supported through the MECSD's Climate and Energy Fund. The first collaboration focuses on increasing the resilience of rural Vanuatu villages in terms of managing climate change impacts, severe droughts and tropical cyclones. This cooperation is done through the implementation of solar powered water pumps and strengthening of Vanuatu's institutional environment for management of solar water pumping systems and water resources. The cooperation between Luxembourg and GGGI has since been extended to sectors such as circular economy and waste management in Senegal and Rwanda, and sustainable finance capacity building in Vietnam.

Drawing from the existing sustainable finance ecosystem in Luxembourg, the GGGI's office in Luxembourg will focus on green investments and partnerships at European level. "With the growing demand for sustainable finance products from our members, the establishment of an office in Luxembourg is a major step to support investments toward low-carbon, resilient and inclusive projects" said Frank Rijsberman. In 2021, GGGI assisted its member countries in issuing green, social and sustainability bonds, mobilising $4.7 billion from domestic and international capital markets for climate change mitigation, adaptation and green economic recovery.

Minister Backes said: "We are pleased to welcome an institution with the pedigree for positive change such as the GGGI to our sustainable finance ecosystem in Luxembourg. I am convinced that with the ecosystem, knowledge and connectivity of Luxembourg's financial centre, our country can support the GGGI in achieving its worthy goals, in particular to mobilise resources internationally and deploy funding where it is needed most."

Minister Welfring said: "The solid partnership we witness today has taken off within the MECSD, thanks to Luxembourg's ambitious international climate finance commitment. Over the past four years, GGGI has become one of Luxembourg's strongest partners in implementing meaningful and sustainable climate action throughout the world and by that improving the lives of those most affected by the consequences of climate change. I am confident that GGGI's Luxembourg-based sustainable finance office will be an added value to the country's constantly growing financial ecosystem and vice versa."