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Factsheet for measure LU-2019-34/3436 – measures in Luxembourg

Decarbonising vehicle

Décarbonation du parc automobile

Country Luxembourg , applies nationwide
Time period Temporary, 19 August 2019 – 31 March 2024
Context Green Transition, Extreme Weather Events
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Sustainable mobility
Author Patrick Thill (LISER) and Eurofound
Measure added 28 November 2023 (updated 11 December 2023)

Background information

As part of the first and second National Integrated Energy and Climate Plans (PNEC) and in line with the ‘Neistart Lëtzebuerg’ recovery programme, the government is promoting the decarbonisation of private and public mobility, both for individuals and businesses. The related policy decisions are aimed at a number of actions. Firstly, it aims to develop the electrification of 49% of the car fleet and to proceed with the complete electrification of the bus network by 2030. In addition, it aims to implement a strategy to decarbonise freight transport and the logistics sector. These objectives are supported by an aid scheme for the acquisition of zero-emission vehicles, a tax advantage for company cars and an aid scheme for the acquisition of clean vehicles (trucks). This initiative is part of a strategy that includes a mobility plan for 2035, promoting public transport and active mobility.

Content of measure

By Grand-Ducal regulation of 19 August 2019, a maximum premium of €8,000 can be granted for the purchase of zero CO2 emission vehicles, including electric or hydrogen fuel cell cars and vans. In this context, the ‘Clever Fueren’ bonus was launched by decision of the Government Council on 3 July 2020. On 24 March 2021, the Government Council adopted a draft Grand Ducal regulation extending the scheme until 31 March 2022, while providing for a more targeted allocation of the premiums. The new text overhauls the bonus scheme: for the purchase of a new 100% electric car or van, the aid granted will now be conditional on electrical energy consumption. Below 18kWh/100km, it remains at €8,000. Above this threshold, it is reduced to 3,000 euros. The same applies to plug-in hybrid vehicles, with aid reduced from €2,500 to €1,500. For 100% electric quadricycles, motorbikes and mopeds, however, bonii are maintained at 50% of the cost of the vehicle, excluding value-added tax, with a ceiling of €1,000. Among the other new features, the scheme is intended to be more "social": the €8,000 bonus will be available to large families (> 5 people) buying a car with seven or more seats, regardless of the vehicle's electrical energy consumption. The text also provides for immediate access to the allowance for individuals who own the cars. This aid scheme was extended until 31 March 2024 by decision of the Government Council on 9 March 2022. At the same time, a premium called ‘Clever Lueden’ was introduced to develop the installation of private charging points for electric vehicles by Grand-Ducal regulation of 19 August 2020. The ‘Klimabonus Mobilitéit’ scheme of the Klimabonus programme then replaced the ‘Clever Lueden’ programme by Grand-Ducal regulation of 29 July 2023.

Use of measure

20 ministries and government departments are directly involved. As regards the installation of electric charging points, as of 29 September 2023, at least one ‘Chargy’ charging point has been installed in every commune in the country; 90 ‘SuperChargy’ ultra-fast charging points, partly financed by the European Union's ‘NextGenerationEU’ programme, are currently being deployed at 18 motorway stations and service areas and on Luxembourg's other main roads. With around 2,000 publicly accessible charging points across Luxembourg, 98% of residents have at least one ≤22 kW charging point within a 5-minute car journey. This means that 90% of residents have at least one publicly accessible fast charging point within a 10-minute car journey. In addition to these publicly accessible charging points, there are private charging points, financially supported by the ‘Klimabonus Mobilitéit’ scheme.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Applies to all citizens

Actors and funding

Actors Funding
National government
Social partners jointly
European Funds
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Unknown

Involvement

The Council of State and professional chambers present their respective opinions on the draft or proposed legislation. In addition, the draft legislation and opinions may, by decision of the Conference of Presidents, be presented at a public sitting as defined by articles 32 to 46 of the Rules of Procedure of the Chamber.

Views and reactions

The Chambre des Métiers welcomes the intention to limit the abuse of resale of vehicles that have benefited from financial assistance. It proposes simplifying the administrative procedures as much as possible, particularly for professionals such as dealers and leasing companies. Finally, this Chambre points out that the development of electric mobility and soft mobility remains conditional on the extension of the network of charging stations and interconnected cycle paths without interruption.

Sources

Citation

Eurofound (2023), Decarbonising vehicle, measure LU-2019-34/3436 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2019-34_3436.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.