Dear Reader,
Amid a backdrop of geopolitical turbulence and intensifying ESG backlash worldwide, sustainable finance has demonstrated resilience and adaptability, continuing its development. Throughout 2024, we have witnessed significant milestones, including relevant regulatory updates at the EU level and worldwide, an increased focus on private markets, and the emergence of innovative solutions enhancing sustainability measurement and reporting, to mention a few. Moreover, despite existing gaps, international commitments have underscored the global resolve to align financial systems with sustainability goals.
Luxembourg has undoubtedly played a pivotal role in this evolving landscape, to mention a few, the reinforcement of Government’s efforts in mobilising private capital at scale with the partnership with the SDG Impact Finance Initiative (SIFI), the launch of the International Social Finance Accelerator (ISFA), the publication of the Ministry of Finance’s 10-point action plan in sustainable finance, the establishment of the Gender Finance Taskforce working groups, and the adoption of a new climate finance goal (NCQG) and the new €320 million climate finance package for 2026-2030.
We have also seen an increased display of green, social, sustainability and sustainability-linked bonds at the Luxembourg Green Exchange, the launch of an innovative acceleration program on sustainable finance by the LHoFT, and the increased adoption of industry-leading tools and initiatives by financial institutions.
The progress achieved reaffirms that sustainable finance is not just a trend but a transformative force shaping the future of global financial markets.
At the LSFI, we have worked tirelessly throughout 2024 to equip the financial sector with the latest information, knowledge, and resources to support and foster this not-easy transition. We organised masterclasses on key topics, conducted in-depth research through working groups, and produced thought-provoking content. We have also strengthened our governance, creating an impact investing advisory board and a scientific advisory board to keep the focus on achieving positive impact, the ultimate goal of sustainable finance, and leveraging the competence and expertise of the scientific community. Our goal has always been to break down the barriers in sustainable finance, build opportunities, and ensure no one is left behind. Once again, we have witnessed that international, national, and local collaboration is crucial.
Looking ahead, the journey of sustainable finance remains complex but undeniably essential. Despite its challenges, it stands as a cornerstone of our society’s economic and social resilience, offering pathways to new funding opportunities while safeguarding firms’ reputations and helping attract top talent while preparing economies for future shocks. Shocks that will be inevitable if we fail to act swiftly and decisively. As the world adapts to shifting geopolitical contexts and emerging risks, sustainable finance provides the tools needed to build a more resilient, inclusive, and equitable future.
As we approach 2025, at the LSFI, we look forward to launching the updated LSFI Luxembourg Sustainable Finance Strategy. This enhanced strategic framework will define our key focus areas for the next five years, aiming to reinforce and bolster Luxembourg’s position as a global leader in sustainable finance. The updated strategy will provide a clear pathway for advancing sustainable finance practices and support the financial ecosystem while addressing emerging global challenges such as nature loss, social equity, and responsible economic growth.
We also look forward to collaborating closely with all stakeholders, financial institutions and key actors involved in sustainable finance to foster the sustainable finance transition. Together, we can unlock the full potential of sustainable finance to strengthen our financial centre resilience, competitiveness and global leadership while creating a thriving, inclusive, and sustainable future—one where economic success goes hand in hand with positive social and environmental impact.
Wishing you a prosperous and impactful 2025!
Nicoletta Centofanti, LSFI CEO
