The Luxembourg Stock Exchange (LuxSE) said today it has become the first stock exchange in the world to launch a platform for green financial instruments.
The platform, called Luxembourg Green Exchange (LGX), goes live today and will immediately become home to most of the 114 green bonds listed on LuxSE, worth more than USD 45 billion (USD 50.6bn).
It will list issuers that dedicate 100% of the raised funding to green investments and has set stringent eligibility criteria in a bid to guarantee that the securities are genuinely green. LuxSE said it wants to set a new benchmark for the rapidly evolving green securities market.
"New issuance of green securities has taken off since COP21. There is a real desire for change. The green market has enormous potential but this needs to be matched by interest from investors. By setting strict standards for green securities, LGX aims to create an environment where the market can prosper," commented LuxSE chief executive Robert Scharfe.
The exchange noted that 2015 was another record year for labelled green bonds with more than USD 42 billion issued globally and that the Climate Bonds Initiative expects green bonds issuance to reach USD 100 billion this year.