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Factsheet for measure LU-2020-21/3429 – Updated – measures in Luxembourg
| Country | Luxembourg , applies nationwide |
| Time period | Temporary, 20 May 2020 – 31 December 2030 |
| Context | Green Transition |
| Type | Legislations or other statutory regulations |
| Category |
Promoting the economic, labour market and social recovery into a green future
– Strategic plans and programmes |
| Author | Patrick Thill (LISER) and Eurofound |
| Measure added | 22 November 2023 (updated 31 October 2025) |
At its meeting on 20 May 2020, the Government in Council adopted the final version of the PNEC for the Grand Duchy. This plan follows on from the first integrated national energy and climate plan. It forms the basis of Luxembourg's climate and energy policy, with national targets for reducing greenhouse gas emissions by less than 55%, renewable energies (25%) and energy efficiency (from 40% to 44%) by 2030. In December 2020, the Chamber of Deputies adopted Luxembourg's first climate law, which obliges Luxembourg to reduce its greenhouse gas emissions by 55% by 2030, transposes the objective of climate neutrality by 2050 to the national level and establishes the legal framework for implementing the NECP
The intermediate targets for 2030 are to reduce greenhouse gas emissions by 55% compared with 2005, excluding the European Emissions Trading Scheme and LULUCF, achieve a 35-37% share of renewable energies in final energy consumption, improve energy efficiency by 44%, and reinforce the targets for renewable energy and energy efficiency (ambitious deployment of wind power, solar power, heat pumps and electromobility). The long-term objective is to achieve climate neutrality and ‘zero net emissions’ in Luxembourg by 2050 at the latest. In this context, the PNEC includes 197 measures in the mean following areas:
The following updates to this measure have been made after it came into effect.
| 13 November 2024 |
A series of interviews with stakeholders in the field of renewable energy were conducted. These interviews were followed by a national consultation meeting on renewable energies, entitled "Einfach - Séier - Erneierbar", held on 13 November 2024. This consultation focused on two technologies with the greatest potential for the Grand Duchy: wind power and photovoltaics. The consultation provided an opportunity to gather insights from key stakeholders and citizens in order to identify strategies, concepts, and concrete measures that will feed into national plans such as the Integrated National Energy and Climate Plan (NECP) and aim to accelerate the transition towards a decarbonised and resilient economy. |
| 17 April 2024 |
The PNEC program has been updated taking into account the 2023–2028 government program and the recommendations issued by the European Commission. The main objective is to simplify and accelerate procedures for decarbonization-related projects. The new PNEC sets an energy efficiency target of -42% by 2030, although the European Commission recommended a target of -48.7%. One of the major changes concerns the pre-financing of photovoltaic projects. By the end of the year, the government will submit a detailed proposal on this matter. Additionally, studies are underway to assess the possibility of installing photovoltaic panels along highways, particularly along the A3. Regarding wind energy, studies are being conducted to examine the safety distances required to allow the installation of wind turbines near highways and business zones. As for hydrogen, the country aims to join the international hydrogen network, particularly to decarbonise heavy industry. Discussions are ongoing with Germany and France, while an agreement has recently been signed with Belgium. Finally, the government favors a strengthened voluntary approach regarding the decarbonisation of residential buildings and the phase-out of fossil fuel heating systems |
Not applicable.
| Workers | Businesses | Citizens |
|---|---|---|
| Applies to all workers | Applies to all businesses | Applies to all citizens |
| Actors | Funding |
|---|---|
|
National government
Social partners jointly |
National funds
Other |
Social partners' role in designing the measure and form of involvement:
| Trade unions | Employers' organisations | |
|---|---|---|
| Role | No involvement | Consulted |
| Form | Not applicable | Any other form of consultation, institutionalised (as stable working groups or committees) or informal |
Social partners' role in the implementation, monitoring and assessment phase:
The PNEC was submitted to the social partners: FEDIL (Fédération des Industriels Luxembourgeois), OGBL, OPC (Observatoire de la Politique Climatique), etc. as well as the political parties and the Chambers. The various partners were able to give their opinion on the plan and the draft law. In addition, a public consultation was carried out in accordance with the law.
Observatoire de la Politique Climatique criticises the lack of a national vision and argues that the plan should focus more on behavioural changes. It also expressed fears that emissions would leak abroad. The Chamber of Deputies considers that it is preferable to encourage rather than oblige, particularly in the property sector. The environmental movements, for their part, regret a lack of dialogue on the substance. They also feel that the targets are too low, and even contradict the Paris agreements. Climate protection policy is subordinate to economic growth. OGBL is calling for a fair transition process to be put in place, managed on a tripartite basis, to accompany the ecological transition and prevent it leading to new social injustices or job losses. The Chambre des Salariés reiterates the need to ensure that compensation is maximum and as wide-ranging as possible, and to use the entire proceeds of the carbon tax for redistribution purposes. Similarly, a support programme should be set up to enable less well-off households in particular to participate in the societal effort that is the green transition.
Citation
Eurofound (2023), Integrated national energy and climate plan, measure LU-2020-21/3429 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2020-21_3429.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.