Luxembourg as a Global Hub for Sustainable Finance

Beyond financial return

A guide to Luxembourg’s role, players, and initiatives in driving sustainable finance.

Overview

A leading international hub for sustainable finance

Luxembourg has established itself as one of the world’s leading financial centres for sustainable finance, building on its long-standing expertise in international finance and innovation to develop a comprehensive ecosystem that supports sustainable investment across asset classes, products, and markets. This commitment is reflected in strong public–private collaboration, a robust regulatory framework, and a wide range of specialised initiatives encompassing climate finance, gender finance, blended finance, and impact investing.

A strong and mature ecosystem

Today, the Luxembourg financial centre acts as a global platform for sustainable finance, supporting activities such as:

ESG investment funds
Green, social, sustainability, and sustainability-linked (GSSS) bonds issuance and listing
Impact Finance Accelerator Programmes
Blended finance and development finance solutions
ESG fund labelling initiatives

Figures at a Glance

Luxembourg’s key figures in sustainable finance

Luxembourg is a major global hub for sustainable investment, with a dynamic and rapidly growing ESG ecosystem:

31% of European sustainable public funds AuM are domiciled in Luxembourg.

EUR 1.6T in sustainable public and private market funds AuM were domiciled in Luxembourg at the end of 2025.

71.5% of the total public market funds AuM in Luxembourg are disclosed under Article 8 & 9.

40.1% of the total private market funds domiciled in Luxembourg are sustainable.

Source: LSFI & ALFI 2025 Study ‘Sustainable Finance in Europe and Luxembourg 2025: Navigating recalibration’, in collaboration with PwC Luxembourg: https://lsfi.lu/sustainable-finance-in-europe-and-luxembourg-2025-study/, May 2026