Factsheet for measure
LU-2021-18/3704
– measures in Luxembourg
Recovery and resilience plan
Plan de reprise et de résilience
Background information
Luxembourg's Plan for Recovery and Resilience aims to foster investment in the dual green and digital transition and strengthen social cohesion. On April 30, 2021, Luxembourg submitted a first version of its Plan for Recovery and Resilience (PRR) to the European Commission. This plan was favorably endorsed by the European Commission in June 2021.By the end of 2023, more than half of the milestones and targets for projects stemming from the RRP had been achieve
Content of measure
The plan is based on 4 pillars: i) Social Cohesion and Resilience, ii) Green Transition, iii) Digitization, Innovation and Governance, and iv) REPowerEU.
The decarbonization of the transport sector is one of the priorities in this context, and the measures set out in the RRP aim to increase energy efficiency in this sector by promoting the acquisition of low- or zero-emission vehicles and the installation of alternative fuel infrastructures, while encouraging the rapid development of electromobility in the various vehicle categories, also through the implementation of an aid scheme for recharging stations aimed at legal entities.
For companies, a new grant has been introduced in 2023 to enable them to convert their road vehicle fleets. The amount varies according to company size. It takes into account the additional cost of acquisition or conversion. Aid is capped at €300,000 per group.
For private customers, the Kimabonus Mobilitéit financial assistance scheme has been extended until September 30, 2025 for purchase and June 30, 2026 for leasing. The purchase subsidy has been reduced from €8,000 to €6,000. A new €1,500 grant has also been introduced for used cars at least 3 years old. This aid will be available until June 30, 2026
Use of measure
In 2023, almost 41% of the planned funds have been implemented to date across Europe. In Luxembourg, 80% of investments have been dedicated to combating climate change, making the national RRP the greenest plan in Europe.
The number of fully electric (BEV) cars has risen from 0.33% in 2019 to almost 7% in 2024. Sales of plug-in hybrids (PHEV) have stagnated slightly. Non-plug-in hybrids (D&E Hybrids) are also on the rise, albeit less spectacularly than BEVs. Their share rose from 1% in 2019 to 8.79% in December 2024. Hydrogen fuel cell cars (FCEV), on the other hand, remain extremely rare, with just four vehicles registered in December 2024.
In addition, more than 700 charging stations will be made available to users across the country by 2022: in municipal public parking lots and in P+R park-and-ride facilities providing easy access to public transport
Target groups
Actors and funding
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Actors
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Funding
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National government
Trade unions
Company / Companies
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European Funds
National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Any other form of consultation, institutionalised (as stable working groups or committees) or informal
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Any other form of consultation, institutionalised (as stable working groups or committees) or informal
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Social partners' role in the
implementation, monitoring and assessment phase:
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Social partners jointly
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Main level of involvement: Unknown
Involvement
On June 21, 2023, the Prime Minister, Minister of State, Xavier Bettel, the Minister of the Economy, Franz Fayot, and the Minister of Finance, Yuriko Backes, met with the social partners at the Château de Senningen as part of the 2023 cycle of the European Semester social dialogue.
At this second meeting of 2023, which follows the one in April, the submission of Luxembourg's National Reform Programme (NRP) and Stability Programme (SCP) to the European Commission provided an opportunity to exchange views with the social partners on how to respond to the recommendations addressed to Luxembourg following the submission of the NRP and SCP, and to present the state of progress of the REPowerEU component of the Recovery and Resilience Plan (RRP), for which Luxembourg has been allocated a budget of almost 160 million euros
Views and reactions
The partners believe that the energy transition cannot be made “against” the people. As long as tax incentives, standards and regulations promote measures that are accessible and affordable to all citizens, acceptance should not be compromised. State intervention must therefore be designed to offset some of the additional costs of the transition at household level through social redistribution instruments.
In terms of mobility, CES (Conseil Economique et Social) is particularly in favor of the continued development of public transport, notably by maintaining high levels of investment in railways. The trend in goods transport should be reversed, with rail taking precedence over road haulage.
To promote access to alternatives to conventional fuels, the players are particularly in favor of investment in the development of sustainable alternative fuels, the systematic installation of a sufficient number of charging stations for electric cars in residential areas, and the introduction of “social leasing” with long-term contracts to help low-income households
Sources
