Background information

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

Content of measure

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:

1. CO2 tax
2. Klimapakt 2.0
3. Phase-out
4. Assistance
5. Klimabonus
6. fleet electrification
7. Social leasing
8. Klimapakt fir Betriber
9. Taskforce H2 Luxembourg
10. Klimabonus Bësc

Use of measure

Not applicable.

Target groups

Workers	Businesses	Citizens
Applies to all workers	Applies to all businesses	Applies to all citizens

Actors and funding

Actors	Funding
National government Social partners jointly	No special funding required

Social partners

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:

• Social partners jointly
• Main level of involvement: N/A

Involvement

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.

Views and reactions

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.

Sources

• 20 May 2020: PNEC
• 15 December 2020: Law of 15 December 2020 - Climat (legilux.public.lu)