3FOOD

Third Industrial Revolution Consulting Group
Figure 7. Overview of the potential workings of a Luxembourg Sustainable Finance Program (LuxSEF) that
outlines the various contractual agreements among program participants. The LSDFP takes up a central role as
aggregator and communication channel.
The strength of the LuxSEF approach lies in the program mechanics of the two financing
windows. As described below, the two variants of the model operate in a similar fashion. The
key difference between the two variants is the structuring of energy savings and billing. In
particular, debt raised under the guaranteed savings variant is placed on the books of the
program participants. Such debt obligations are typically less attractive to the private sector
and, indeed, this variant of the model has been successfully applied in a public sector context.
The guaranteed energy savings model does allow for more aggressive energy savings and
unlocks longer investment options with longer payback periods.
The second variant, the sustainable energy services option, bills the cost of energy savings on a
per kWh basis to the program participant. This bill can be an add-on to existing municipal billing
(e.g., waste, sewer, etc.). Program participants, under this variant of the model, do not carry
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