Anaëlle Seiwert, an Avocat à la Cour at KAUFHOLD & REVEILLAUD, provides insights on the impact of sustainable finance regulations in the Luxembourg financial sector and the need for specific legislation to enforce climate policies. She highlights the recent ruling of the Court of Paris as a learning experience for Luxembourg, emphasizing the importance of clarifying measures to ensure compliance with sustainability obligations.
“The financial sector, being the most productive sector of the Luxembourg economy, has changed over the last ten years under the guidance of the European Union, particularly with regard to sustainable finance with SFDR and taxonomy. These regulations have led to several new obligations, one of which being for financial advisors to inquire about investors’ preferences in terms of sustainability.
The Grand Duchy of Luxembourg adopted on December 15, 2020 the law on the climate that introduces 55% reduction targets for greenhouse gas emissions until 2030 and implements the objective of climate neutrality by 2050 at the national scale. This law therefore aims to establish an institutional framework for climate policy.
However, these regulations often remain mostly non-binding due to the lack of specific legislation. Indeed, a ruling of the Court of Paris confirmed this by dismissing the NGOs’ requests to order TotalEnergies EP to comply with its duty of vigilance and to stop its activities in Uganda. The Court noted that the measures of vigilance provided by the law remain broad, as the minister’s order that could provide details on the content of these measures had not yet been issued. The need for clarification expected by the judge should be considered as a learning experience for Luxembourg, which should be inspired by this approach in the future.”
With a deep understanding of the evolving regulatory landscape and the importance of specific legislation, Anaëlle is well-equipped to navigate the complexities of sustainability obligations and advocate for effective climate policies. Her insights serve as a valuable resource for organizations seeking to address climate change in a legally compliant and impactful manner.