Luxembourg Sovereign Sustainability Bond

Environmental Impact Management Advisory
Luxembourg has issued in September 2020 an EUR 1.5 billion sovereign sustainability bond with a 12-year maturity to finance and refinance social and green projects. Sustainability Bond Framework – Luxembourg (public.lu).

4Climate advises the Luxembourg Sovereign Sustainability Bond Committee on environmental impact measurement and reporting of the impacts of the environmental projects of the sovereign sustainability bond. The portfolio of environmental projects consists of projects in clean transport sector, drinking water and waste water treatment, ecosystem restoration and energy efficiency in affordable housing.

4Climate offers its services to Luxembourg as a lead company in a consortium of four companies including Efor-Ersa Engineering Consulting (Luxembourg), Beissel & Ruppert Engineering Consulting (Luxembourg), INFRAS (Zurich, Switzerland).

Environmental impact management advisory for a sovereign sustainability bond, issued in compliance with the International Capital Markets Association (ICMA) Green, Social and Sustainability Bond principles and integrating as far as possible the EU Green Bond Standard requirements including the EU taxonomy on sustainable activities (for climate mitigation and adaptation).

The advisory includes the following main aspects:

  • selection and definition of key performance indicators and associated impact metrics
  • estimation of environmental benefits
  • calculation of CO2e reductions for selected projects
  • assistance in the collection of environmental impact data
  • preparation of an impact methodological guide.