The Government of the Grand Duchy of Luxembourg and the United Nations Capital Development Fund entered into a framework agreement in 2008. The agreement recognized the important role UNCDF plays in the international development system through its mandate to help the Least Developed Countries (LDCs) achieve their development goals and the Programme of Action for the LDCs. The agreement was also an acknowledgement of the essential support UNCDF offers in the elaboration of public policies in developing countries to enable decentralization and local development, as well as to build inclusive nancial sectors to support LDCs to achieve their sustainable development goals.

In 2011, Luxembourg and UNCDF renewed the framework agreement, aiming to deepen the partnership and provide a coherent, predictable, exible, and structured framework for collaboration and support to UNCDF’s mandate and actvities. The framework was amended in 2016 with an eye towards elevating the visibility of the partnership, which continues to evolve and strengthen.