3 questions to Paul Chahine

Whether you are already part of the LGX Academy or would like to know more about the market, our expert lecturers are bringing you an outlook of the sustainable finance sphere. 

In this part, Paul Chahine, Sustainable Finance Manager at the Luxembourg Stock Exchange and lead LGX Academy lecturer, shares his predictions on industry trends in capital markets in 2023, the audience of the LGX Academy and its future. 

Transition finance will be at the heart of sustainable finance developments as heavy polluting industries need sufficient funding to accelerate their transition to more social and environment-friendly models. Multiple products can help them meet their needs, including sustainability-linked bonds, which do not limit issuers to a project-based use of proceeds. 

Some major SLBs deals will mature in 2023, which creates some expectations in the market. This is important as, at maturity, investors will find out whether the issuers reached their sustainability targets, but it is unclear how it will impact the market and their ratings if that is not the case.  

In terms of green, social, sustainability and sustainability-linked bonds, 2022 saw an increase in issuances from sovereign issuers*, especially from emerging markets. We expect sustainable finance to continue gaining traction in these regions, where improved financial literacy and comprehensive capacity building for all stakeholders is wanted and needed. With a stronger knowledge of existing products, regulations and best market practices, local issuers could enter the international sustainable finance market to finance their transition, but also reassure and attract international investors. 

On the regulatory side, the time of implementation has come. In 2023, most of the European disclosure requirements will be implemented, which will, without a doubt mark the start of a new adaptation chapter across all industries. 

We initially launched the LGX Academy in 2020 with the objective of promoting and providing sustainable finance education to professionals from the financial industry, mainly in Luxembourg as we identified a need for more collective knowledge. Ultimately, the LGX Academy allowed us to further contribute to the transition of the financial sector towards more sustainable solutions. 

To our surprise, the participants came from a wide range of backgrounds. Researchers, lawyers, masters’ and PhD students, civil servants from different ministries, and even representatives of the real economy sectors joined our first sessions. As lecturers, it was a confirmation that sustainable finance was starting to become mainstream and that people were eager to become part of the solution, no matter their sector.  

The second surprise was that participants came from all around the world, far beyond Luxembourg’s and Europe’s borders, which showed that the sustainable finance industry was growing globally. 

The LGX Academy is expanding, but we will keep the essence of our service. Our regular cohorts will still take place virtually, but we have made the decision to adapt the time to accommodate more people internationally, especially in America, where the appetite for sustainable finance knowledge is considerable. 

But the important update is that we will soon launch additional modules with new content on carefully chosen topics based on industry trends. Our goal with these new courses it to ensure that our content reflects the latest developments in the market to help our participants stay up to date and make the most informed decisions for their business. 

Paul Chahine is Sustainable Finance Manager at the Luxembourg Stock Exchange (LuxSE). Before joining the LGX team, Paul refined his specialisation in climate finance as a consultant for the European Investment Bank’s climate team, where he played a pivotal role in climate finance tracking and methodologies. 

In addition to contributing to the Luxembourg Green Exchange (LGX) projects, Paul is responsible for the daily management of the LGX Academy, where he serves as the lead lecturer. He also represents LuxSE in several working groups, including those formed by ICMA, WFE and LSFI and oversees sustainable finance partnerships with emerging economies.