The consultancy firm Z/Yen Partners has published the 7th edition of its Global Green Finance Index report, which compares green finance across leading financial centers. The index analyzes the depth of the market and the quality of green finance offerings of around 100 financial centers worldwide. Sustainability and ecological transition have become an increasingly important criterion in the financial sector. Green finance brings together financial instruments and services that induce long-term positive effects on the environment and society.
Luxembourg ranks sixth, which reaffirms the strength of its sustainable finance toolbox: from the fund ecosystem that has ensured the country is the preeminent Environmental, Social and Governance (ESG) mutual fund center, both by assets (21.2%) and by number of funds (21.4%), to the pioneering role that the Luxembourg Green Exchange (LGX) continues to play. The LGX is currently the largest green bond market globally, with approximately 50% of all green bonds listed on the exchange.
Initiatives such as the Sustainability Bond Framework and the Luxembourg Sustainable Finance Initiative will continue to ensure the central role of Luxembourg in maintaining the sustainable future of finance.