The Luxembourg-EIB Climate Finance Platform1 (LCFP) is a joint initiative between Luxembourg and the European Investment Bank to mobilize and support investment in international climate finance, focusing on climate change mitigation (reducing greenhouse gas emissions) and adaptation (building resilience to climate impacts). The LCFP engages in impact investing across various sectors:
- Renewable power: investing in clean energy sources such as solar, wind and hydropower
- Energy efficiency: supporting projects that enhance energy efficiency in buildings, industries and transportation
- Sustainable agriculture: promoting climate-smart agricultural practices and technologies
- Reforestation: contributing to forest restoration and carbon sequestration
- Green buildings: encouraging sustainable construction and retrofitting
These investments not only combat climate change but also contribute to broader sustainable development goals.
The LCFP aims to increase the impact of climate financing by mobilizing private sector investment, thereby acting as a catalyst for additional financing.
Luxembourg plays a pivotal role as the sole contributor to the LCFP’s trust fund. Its commitment provides the essential financial support for the platform’s operations. By ensuring stable funding, Luxembourg enables the LCFP to operate effectively, while the government’s unwavering dedication ensures efficient execution of climate finance initiatives. Moreover, Luxembourg’s contributions are projected to leverage up to EUR 18.2 billion in project funding, demonstrating an impressive multiplier effect that enhances the platform’s influence and encourages additional financing for climate-related endeavors.