Capital markets

The Luxembourg Finance Labelling Agency (LuxFLAG) launched a new label for green bonds which will be granted, after rigorous assessment, to eligible instruments that finance green projects. The objective is to reassure investors that labelled investment vehicles effectively invest in a responsible manner.

The LuxFLAG Label requires green bonds to report on qualitative and quantitive performance indicators in the management of proceeds and must provide not only ex-ante external review but also commit to mandatory regular ex-post reporting. Furthermore, the green bond must agree to transparency and disclosure by following internationally recognised standards such as the Green Bond Principles or Climate Bonds Initiative.

LuxFLAG will review incoming applications on a first come, first served basis. Label award decisions will be taken quarterly.

LuxFLAG is part of the Luxembourg government’s strategic objective to make a credible contribution to the international fight against climate change and to position Luxembourg as an international center for climate change.

The Green Bond Label is the fourth initiative of the Luxembourg Climate Finance Task Force after the launch of the Luxembourg-EIB Climate Finance platform, the Luxembourg Green Exchange and LuxFLAG’s Climate Finance Label.