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TIR-CG_Luxembourg-Final-Report_Long-Version TIR-CG_Luxembourg-Final-Report_Long-Version

14.11.2016 Views

Third Industrial Revolution Consulting Group A wide range of stakeholders will collaborate on the LSDFP. Besides investors and project owners: Government (national and local) Relevant “Etablissements publics” (public law bodies) Professionals and financial institutions/associations (ALFI, ABBL, ACA, Insurance Companies…); Intermediate Financial Advisors Asset managers Audit firms Luxembourg Stock Exchange LuxFlag 211 UNPRI expert in Luxembourg 212 Interested private sector companies PPPs Civil Society Organizations, NGOs The implementation of this project will help to bridge a gap that still exists between mutually reinforcing types of (public and private) financial contributors and investors in search of investment opportunities in the field of sustainable development, including the TIR, on the one side, and project promoters in search of adapted financing for the implementation of their projects, on the other side. The results to be expected in the economic, social and environmental fields will include: Increased economic and financial activity; Improved infrastructure (physical and digital) throughout the three constitutive pillars of sustainable development: economic, social and environmental; Enabling the pillar sectors and transversal axes of the TIR; Leverage on private sector investment through smart use of public seed funding and funding for risk mitigation and technical assistance; Increased effectiveness and mutual reinforcement, in facing the complex challenges of sustainable development, through a multidisciplinary and multi-stakeholder approach; Credible contribution to the global public good of sustainable development and the implementation of Luxembourg’s national commitments taken under the universal agendas of the Sustainable Development Goals (Agenda 2030) and the fight against climate change (COP21 Paris Agreement); Better access to education and health care, including in the form of an in natura return; 211 The LUXEMBOURG FUND LABELLING AGENCY (LuxFLAG) is an independent, nonprofit making, association created in Luxembourg in July 2006 by seven founding partners who are the Charter Members. The agency aims to promote the raising of capital for Responsible Investment sector by awarding a recognisable label to investment funds. Its objective is to reassure investors that the applicant investment fund invests, directly or indirectly, in the responsible investment sector. The applicant fund may be domiciled in any jurisdiction that is subject to a level of national supervision equivalent to that available in European Union countries. See: http://www.luxflag.org/. 212 See: https://www.unpri.org/about. 258

Third Industrial Revolution Consulting Group Increased number of climate / environment related projects; Job creation. We may nevertheless need to ensure that the investor can also decide which type of project and impact they want to invest in. Therefore, the financial solution should be based on two possibilities: either a financial pool from which the project can be financed; or, on the other hand, through specific capital calls to further investor commitment. In terms of resources, we can distinguish between financial resources and non-financial ones: Financial resources (both domestic and international): o Public seed funding and funding for mitigating the risk of private sector investors and for technical assistance at the project level; o Private investment; o European Funds (e.g. Juncker Plan – Investment Plan for Europe). Non-financial resources: o Increased capacity for-- • defining eligibility criteria, • project sourcing, • project design ad formulation, • project assessment (based on UNPRI principles?), • financing needs assessment, • outreach to financial contributors and project promoters, • quality control, including through a labelling system, defining and executing a communication plan, • administrative tasks. Legal framework for crowdfunding and leasing Figure 1 that follows provides a conceptual overview of how the LSDFP might function, and encourage a greater collaboration and coordination among key entities within the financial markets of Luxembourg. At the same time, an information box highlights several of the key characteristics of the LSDFP. 259

Third Industrial Revolution Consulting Group<br />

<br />

<br />

Increased number of climate / environment related projects;<br />

Job creation.<br />

We may nevertheless need to ensure that the investor can also decide which type of project<br />

and impact they want to invest in. Therefore, the financial solution should be based on two<br />

possibilities: either a financial pool from which the project can be financed; or, on the other<br />

hand, through specific capital calls to further investor commitment.<br />

In terms of resources, we can distinguish between financial resources and non-financial<br />

ones:<br />

<br />

<br />

<br />

Financial resources (both domestic and international):<br />

o Public seed funding and funding for mitigating the risk of private sector investors<br />

and for technical assistance at the project level;<br />

o Private investment;<br />

o European Funds (e.g. Juncker Plan – Investment Plan for Europe).<br />

Non-financial resources:<br />

o Increased capacity for--<br />

• defining eligibility criteria,<br />

• project sourcing,<br />

• project design ad formulation,<br />

• project assessment (based on UNPRI principles?),<br />

• financing needs assessment,<br />

• outreach to financial contributors and project promoters,<br />

• quality control, including through a labelling system, defining and<br />

executing a communication plan,<br />

• administrative tasks.<br />

Legal framework for crowdfunding and leasing<br />

Figure 1 that follows provides a conceptual overview of how the LSDFP might function, and<br />

encourage a greater collaboration and coordination among key entities within the financial<br />

markets of Luxembourg. At the same time, an information box highlights several of the key<br />

characteristics of the LSDFP.<br />

259

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