Luxembourg becomes the first European nation to raise €1.5 Billion euros by selling sustainability bond, news reports said. It is reported that the country’s sustainability bond which is a part of green bonds for cleantech projects and other social projects aims to put Luxembourg on the line with other European economies which are thriving towards their green ambitions.
Trisha Taneja, head of ESG advisory at Deutsche bank, told the media,” We are seeing more interest to go down the social and sustainable route from sovereigns.”
The selling of sustainability bonds by Luxembourg marks its efforts towards the development of
sustainable finance and support cleantech projects. It is reported that the government of
Luxembourg will use the funds equally to carry out green and social projects without any obligation.
The Covid-19 pandemic has compelled economies to halt green bond issuance from development
banks but now slowly things are changing.
The country rolled out a one-step framework in 2019 to deploy the UN’s 17 sustainable
development goals and implemented a law that will help Luxembourg to become carbon neutral in
the future.
According to a sustainable development 2020 report, Luxembourg is still behind many European
nations in terms of achieving UN goals.
Furthermore, countries such as Germany are also focusing on green bonds and other developments
which will support cleantech sector for a greener future. The world is changing now as more and more countries are concerned about the environment. Therefore, sustainable dev elopement is the future.