Green investments are traditional investment vehicles (such as companies, exchange-traded funds and mutual funds) in which the underlying business(es) are somehow involved in operations aimed at improving the environment in a sustainable manner.
These investments can be made by large scale green companies as well as start-ups developing green innovations or green products, like solar panels, wind-power electric generators, etc.
Nonetheless the issuance of bonds, notes, securities and other investment products in order to invest in such projects also fell under the same regime.
Furthermore, a new « environment Label » has also been created in Luxembourg. It can be delivered by Luxflag, a Luxembourg organisation which supports sustainable finance. The Label is granted to investment funds that apply vigorous environmental screening to the companies whose securities they invest in.
The Luxembourg Stock exchange, with its 114 “green bonds” issued in 2007 (representing a total amount of $45 billions), has been taken a leadership role in the green bonds market. Pursuing its effort in green investment, it has decided to launch, as from mid-september 2016, a stock exchange completely dedicated to investments aiming at fighting against global warning.