A tax break intended to lure ESG investors to Luxembourg is proving elusive, with little sign asset managers have been able to take advantage of the perk in the almost four years since it was introduced.
Luxembourg, already the world’s biggest hub for sustainable investment managers, intended to cement that position by reducing the annual subscription tax for environmental, social and governance funds to as little as 0.01% from 0.05% of the share of net assets invested in sustainable economic activities, as defined by Europe’s green taxonomy.
