- Client: Ministère Luxembourg de l’Environnement, du Climat et de la Biodiversité
- Implementation period: May, 2025 - August, 2025 (Completed)
- Geographic coverage: Luxembourg, Global
- Theme: Climate Change, International Climate Finance
- Topic: Comparative Analysis, Evaluation, International Climate Finance, International solidarity, Portfolio analysis, Recommendations, Trend Analysis
- Experts: Hans Bolscher, Tatiana Cuervo Blanco, Finn Goodall, Jeroen van der Laan, Rob Williams, Private: Ajla Kospo, Marie Stjernquist-Desatnik
“Luxembourg has committed to achieving climate neutrality by 2050 and pledged EUR 220 million in international climate finance (ICF) between 2021 and 2025, making it one of the largest donors per capita globally. This contribution is additional to its 1% GNI official development assistance (ODA) commitment and reflects Luxembourg’s dual focus on both climate ambition and international solidarity.
The ICF strategy (2021-2025) prioritised adaptation, gender equality, and local capacity-building, and was structured around seven thematic areas: natural capital and biodiversity; clean air and water; resource efficiency and waste management; community-based adaptation and resilience; transparency under the Paris Agreement; sustainable finance; and climate-induced migration. Additionally, it emphasised mobilising private finance and alignment with international frameworks such as the Paris Agreement and the Sustainable Development Goals (SDGs). Funding was channelled through multilateral institutions (e.g., GCF, EIB), bilateral partnerships, and Luxembourg-based NGOs: and administered by the Climate and Energy Fund under the Ministry of Environment, Climate and Biodiversity (MECB).
This study evaluated the implementation and impact of Luxembourg’s ICF Strategy (2021–2025) and serves to shape the next strategy cycle (2026–2030). Using OECD-DAC criteria, it assessed the strategy’s effectiveness, efficiency, impact, and relevance. The analysis looked at progress on climate goals and socio-economic co-benefits such as job creation, gender equality, and stakeholder engagement. It also benchmarked Luxembourg’s approach against peer donors (Netherlands, Sweden, Belgium, and Austria) and explored global trends in areas like private finance mobilisation, biodiversity, and reporting standards. Findings were also used to develop recommendations for the next strategy. The study was carried out between March and July 2025 and, next to the extensive portfolio analysis, drew on interviews with stakeholders, a survey of project implementers, case studies of peer countries and ICF projects, and in-person workshops with MECB.
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