Luxembourg''s energy system is characterised by high import … Contact online >>
Luxembourg''''s energy system is characterised by high import
Luxembourg''s integrated national energy and climate plan (PNEC) is an important element of the Grand Duchy''s climate and energy policy. It sets out the national climate and energy objectives for 2030, as well as the policies and measures needed to achieve them.
The measures apply to six sectors, namely:
The Energie- a Klimaplang fir Lëtzebuerg is also a strategic document enabling Luxembourg to make an active commitment to climate action and the energy transition, as well as to the development of a sustainable economy. It is a direct response to both the climate crisis and the energy crisis.
The PNEC is the result of an intrinsically collaborative approach between the ministries and administrations concerned, coordinated by the Ministry of the Environment, Climate and Biodiversity and the Ministry of Economy.
The ambitions and enhanced measures set out in the PNEC are also based on the results of various public consultation and institutional cooperation processes carried out in recent years.
Citizens and scientists alike have come out in favour of even more ambitious targets and measures for Luxembourg in the future:
A public enquiry, open from 17 April to 16 May 2023, was also an integral part of the procedure, inviting citizens to submit their comments and proposals on the project.
The intermediate targets by 2030are
The long-term objective is to achieve climate neutrality, or zero net emissions in Luxembourg by 2050 at the latest.
The Energie- a Klimaplang fir Lëtzebuerg presents both reinforced and new measures. The plan includes a total of 206 different measures, and particular attention was paid during the review process to the "just transition".
These measures correspond to different types of instruments, are at different stages of development, have different deadlines for implementation and identify different players responsible. And some measures are proving to be the most important and/or innovative compared with the previous version of the plan:
Since 2021, fossil fuels, whether road or heating fuels, have been subject to a CO2 tax in order to curb and reduce their consumption. Initially set at €20/t CO2, the tax was increased by €5/t CO2 emissions in 2022, 2023 and 2024, reaching a level of €45/t CO2 in 2026, which corresponds to the price level targeted by the future EU Emissions Trading Scheme for buildings, road transport and fuels in certain industrial sectors, to be introduced in 2027. The Energie- a Klimaplang fir Lëtzebuerg is proposing the continuation of this annual increase of €5/t CO2.
The revenue generated by this tax will be used fairly:
Since local authorities are important partners in implementing climate objectives at local level, Klimapakt 2.0 encourages and supports them:
The "phase-out" aims to completely decarbonise heating systems in buildings. The final version of the PNEC favours a more voluntary approach, providing incentives and support for citizens and businesses, in particular through attractive aid schemes. According to Statec projections, only a partial replacement (50%) of end-of-life fossil boilers by renewable energies would not affect the achievement of the 2030 climate target. By 2050, the replacement rate is expected to rise gradually to 100%, which would make it possible to limit the number of fossil-fired boilers in residential buildings (to around 15,000 by 2050).
It should be noted that the "phase-out" does not entail any obligation to replace a (fossil fuel) heating system that is still working properly. The "phase-out" applies when an existing boiler that is out of service or no longer authorised under current regulations is replaced.
To extend support for energy renovation to all low-energy-performance residential buildings, a national entity to support energy renovation projects, decarbonisation and the installation of photovoltaic systems for residential buildings will be set up.
The aim is to provide comprehensive and structured assistance to owners of residential buildings with low energy performance, in terms of identifying potential for improvement, planning and financing.
The Klimabonus aid scheme provides increased financial support for the construction and sustainable energy renovation of homes, the installation of technical systems that make the most effective use of renewable energy sources in homes, for vehicles with zero CO2 emissions and energy advice.
With regard to the electrification of the car fleet, the PNEC provides for:
Introduction of a social leasing system for electric cars with long-term leasing contracts to support low-income households in electrifying their individual mobility.
The Klimapakt fir Betriber (KPB) is a new instrument designed to accompany and support companies in the energy transition and climate action. This is a strategic orientation platform that allows for the coordinated consultation and implementation of projects and activities by different actors, as well as the management of several new programmes.
Aimed at small and medium-sized enterprises (SMEs), the KPB is a voluntary commitment by companies that will enable long-term monitoring of their decarbonisation and energy transition efforts.
The strategy includes seven key measures to promote the production, import and use of renewable hydrogen:
A "Taskforce H2 Luxembourg" steering committee has been set up to monitor the strategy.
In the agricultural sector, as well as continuing to develop and accelerate the deployment of agriculture council, the aim is to promote "agrivoltaics", i.e. the combination of agricultural production and the production of photovoltaic energy.
Since forests have a significant natural carbon storage potential, the targets for net greenhouse gas removals in the LULUCF sector will be strengthened.
In addition, an aid scheme for the sustainable management of private forests, the Klimabonus Bësch, will be established.
Taking into account economic developments since spring 2023 and the latest macroeconomic prospects, Statec has updated the basic data, models and impact of the measures proposed in the PNEC. According to Statec projections, GHG emissions will fall by 56% by 2030. This would meet the national climate target set by the Climate Act.
The cumulative balance of emissions in relation to annual emissions allowances by 2030 is improving marginally compared with the draft update of July 2023. Over the period 2021-2030, the Statec''s work highlights a ''bonus'' of around 2,000,000 tonnes of CO2 equivalent compared with the annual emissions allocation trajectory, which corresponds to around 3.4% of the total emissions budget (compared with 1% in the draft update). The annual emissions allocations would be respected by 2030.
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