Luxembourg joins the GGGI: How a small state is influencing global green growth

In the presence of former UN Secretary General Ban Ki-moon and Luxembourg's ministers, the Grand Duchy was officially announced as the 51st member of the Global Green Growth Institute (GGGI) at the MUDAM Museum of Modern Art. This is not just a formality, but an important event in international climate policy.

According to Ban Ki-moon, the cooperation between Luxembourg and GGGI started in 2018 and has already yielded tangible results. Now, with full membership, the country will be able to participate more actively in decision-making and the expansion of green finance.

The first joint project between GGGI and the Luxembourg Ministry of Environment began with the installation of solar pumps in villages in Vanuatu, one of the most climate-vulnerable countries. The projects later spread to Senegal, Vietnam and Rwanda.

In 2023, the partnership was taken to the next level with the launch of the SIDS Climate Action Programme initiative to help small island states. The focus is on sustainable agriculture, renewable energy and adaptation to a changing climate. This has become a strategic area for Luxembourg - the Ministry of the Environment considers it a priority on the international climate agenda.

In addition to humanitarian projects, Luxembourg is also showing leadership in innovative sustainable finance instruments. Together with GGGI and the Luxembourg Stock Exchange (LuxSE), the Global Trust Fund for Sustainable Financial Instruments (GTF) was established in 2023. Its aim is to leverage the capital of markets for environmentally responsible investments. The result has exceeded expectations: projects worth $2.1bn have already been financed in 18 countries - from wastewater treatment in Cambodia to solar power in Namibia.

Finance Minister Gilles Roth emphasised that GGGI membership reinforces Luxembourg's commitment to building a sustainable and inclusive global financial system. "We aim to deepen our contribution to innovative solutions to help attract investment for sustainable growth and climate resilience, especially in the most vulnerable countries," he said.

In a wave of growing financial activity, GGGI opened a regional office in Luxembourg in 2023, housed at the Luxembourg House of Financial Technologies (LHoFT). Here, the team focuses on developing carbon pricing mechanisms and engaging with the local financial ecosystem.

Environment Minister Serge Wilmes said GGGI has become a strong strategic partner for his ministry: "We are building genuine trust between institutions and making a real impact in the area of climate and biodiversity, including through sustainable finance."

Luxembourg's accession to the GGGI is not only a recognition of the work already done, but also a step towards systematically strengthening the country's role in the international climate architecture. At the same time, Luxembourg continues to follow its strategy: to help not only with money, but also with knowledge, institutions and connections.

Against the background of preparations for the COP29 summit in Baku and growing pressure on the financial sector in the context of decarbonisation, membership of the GGGI gives Luxembourg added weight - as one of Europe's climate finance hubs.