3FOOD

Third Industrial Revolution Consulting Group
• Contrary to the SEF model as applied in the U.S. state of Delaware, where a newly
established public authority is granted authority to directly issue sustainable energy
bonds, the Luxembourg context suggests that using an existing authority (as is done in
the Pennsylvania Sustainable Energy Finance Program, PennSEF) might be more
appropriate. This is especially true when one considers that the LSDFP does not have the
authority to issue bonds. To enable the LSDFP to issue bonds directly would entail the
burdensome necessity to adopt specific legislation in this sense, which is not
recommended (see also the info box on the LSDFP above).
• As an interface between project promoters and investors, the LSDFP is not meant to
manage financial flows or raise capital itself. Issues regarding liability, regulation and
supervision would be difficult to address and would risk hampering the main mission of
the LSDFP as a matchmaking interface between project promoters and investors. If the
LSDFP were to issue bonds or raise other funding, it would most probably duplicate
capacities and expertise readily available among existing public and private sector actors
(government, banks, companies etc.) with higher professional skills and means (over 3.3
trillion euros of net assets in investment funds and more than 300 billion euros AuM in
Private Banking). Therefore, we would suggest that the LSDFP should rather focus on
bridging the well identified communication gap between project promoters and
potential investors and engage in “opportunity data mining”. Therein lies its genuine
added value.
• As stated above, the LSDFP would support the financing of investable projects in all the
pillar sectors of sustainability (economic, social and environmental), including TIR
projects (but not limited to). In this light, the range of projects accompanied by the
LSDFP largely exceeds the realm of energy related projects (energy efficiency,
renewables) closely associated to the SEF model. In this light, LSDFP fully incorporates
energy related projects, but is not limited to the latter.
As outlined in the section on the Pennsylvania Sustainable Energy Finance Program (PennSEF,
USA), existing authorities or organizations can be used to issue the bonds. As such, there is no
need for the LSDFP to broaden its mandate to include a bond issuing authority. Instead, the
LSDFP can focus on its communication and aggregation functions.
Nevertheless, the LSDFP can play a central role in the LuxSEF strategy. One such role is
visualized in Figure 7. Here, the LSDFP takes up the role of aggregator and interface platform
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