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Factsheet for measure LU-2022-38/2758 Updated – measures in Luxembourg

Bill on financial aid for companies investing in charging infrastructure for electric vehicles

Projet de loi relative au régime d’aides en faveur des entreprises investissant dans des infrastructures de charge pour véhicules électriques

Country Luxembourg , applies nationwide
Time period Temporary, 15 September 2022 – 31 December 2025
Context Green Transition
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Support for spending, stimulus packages
Author Fanny Robert (LISER)
Measure added 17 August 2022 (updated 09 October 2022)

Background information

Luxembourg has endorsed objectives to reduce, by 2030, its greenhouse gas emissions by 55% compared to 2005 in its integrated plan for energy and for the period 2021-2030 and with an emphasis on the decarbonisation of transport. In addition to the aid scheme set up by the Grand-Ducal regulation of 19 August 2020 for private individuals wishing to install charging stations at their place of residence, this draft law introduces three additional aid measures for companies which aim to provide Luxembourg with the charging infrastructure required to enable the transition to electromobility based on a 100% renewable electricity supply.

Content of measure

The purpose of the project is to financially support companies that invest in charging infrastructure for electric vehicles. it introduces three financial aids:

  • The first is aimed at companies with large-scale charging infrastructure projects, public and private, and will be awarded following a competitive process.
  • The second is aimed at small and medium-sized businesses wishing to install a private charging infrastructure reserved for them; it takes the form of a simplified application procedure.
  • The third is aimed at distribution system operators and third-party companies wishing to take over the "Chargy" public charging infrastructure.

The total budget foreseen is €40 million and may be allocated according to demand from companies. The annual budget thus amounts to €10 million between 2022 and end of 2025.

Updates

The following updates to this measure have been made after it came into effect.

26 July 2022

On 26 July 2022, the Chamber passed a new law on the aid scheme for companies investing in charging infrastructure for electric vehicles.

15 July 2022

On 7 July 2022, the Deputy chamber adopted the law which provides for an aid scheme in the context of the greenhouse gas emission allowance trading system for the period 2021-2030.

The budget allocated to this scheme each year is €50 million, or €500 million over 10 years. Only companies registered in the ETS (for "emissions trading system") will be able to benefit from this aid. Around ten companies are therefore concerned, including ArcelorMittal, Guardian, DuPont de Nemours and Cimalux.

Use of measure

All companies of private sector are concerned by theses measures.

Target groups

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

Actors and funding

Actors Funding
National government
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: N/A

Involvement

No involvement of social partners at this stage.

Views and reactions

No involvement of social partners at this stage.

Sources

  • 06 December 2021: Bill on the aide schem for companies investing in charging infrastructures for electric vehicles (www.chd.lu)
  • 15 July 2022: Gas emission allowance trading (www.chd.lu)
  • 26 July 2022: Business support - electrical load (legilux.public.lu)

Citation

Eurofound (2022), Bill on financial aid for companies investing in charging infrastructure for electric vehicles, measure LU-2022-38/2758 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2022-38_2758.html

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