Credit: PwC/ O. Minaire
The future of green finance and the growth of green investment were the main topics of the first PwC Green Finance Day, held on 30 March 2018.
With the growing interest in sustainable finance and green investment products, the importance of green finance and its impact on having a more sustainable planet were the main topics discussed on this occasion.
After the initiation of the Climate Finance Task Force in 2015 to advise the government on joining the fight against climate change, Luxembourg now takes the lead on the development of green financial services and products. Equipped with expertise of private and public sector players, the recent conference explored in depth the strategies put in place so far, the opportunities and challenges of Luxembourg’s green financial centre and the potential new business models that will arise from these changes.
Steven Libby, partner at PwC Luxembourg, kicked-off the conference by describing why Luxembourg is the main developer of this market and how it is taking the lead in green financing and sustainability. According to him, “green financial went from a niche to a substantial market, with Luxembourg on the front seat. As the global financial industry awoke to the importance of sustainable services, in 2017, the global green bond market surpassed USD 150bn of annual issuance.”
Regarding concrete solutions in this sector, Steven Libby described some of the main green initiatives already in place locally. In 2016, for example, the Luxembourg Green Exchange (LGX) launched a dedicated platform for green, social and sustainable securities displaying today 170 securities. The value of green bonds passed the €50 billion mark, making it the biggest of all the dedicated green bond segments or lists on stock exchanges throughout the world. In June 2017, the European Investment Bank (EIB) celebrated the 10th anniversary of the first evergreen bond, the "Climate Awareness Bond“, listed in Luxembourg in 2007. Minister Pierre Gramegna also stressed that the banking sector is investing in sustainability projects with companies from the private sector to create long-term solutions for climate change.
Subsequently, Nev Hyman, Founder and General Partner at NEV-House, presented his company as a successful green business case study in Luxembourg, proposing a tangible solution for one of the biggest environmental challenges of our time: plastic recycling. Its mission is to transform all types of plastic into deployable infrastructures and other waste into energy.
What does the future hold for green finance? This was the main topic of a panel moderated by Jörg Ackermann, partner and Michael Hauer, senior manager at PwC Luxembourg. The participants debated the Luxembourg’s sustainable journey, the current financial situation and challenges and how, in a long-term, the new sustainable system would look like in 2030.
Finally, Nathalie Dogniez, partner at PwC Luxembourg, closed the conference by presenting 2018 as the year for sustainability, showing that people’s perception of sustainable investment has been shifting and that 78% believe sustainable investment is becoming an essential part of a bright green future.
