Luxembourg Circular Economy Strategy to Revolve around Innovation, Interministerial Consultation

During a press conference on Monday 8 February 2021, Luxembourg's Minister of the Economy, Franz Fayot, Minister of the Environment, Climate and Sustainable Development, Carole Dieschbourg, and Minister of Energy, Claude Turmes, presented the national strategy for a circular economy.

In a circular economy, the production and exchange of goods and services and the creation of socio-economic value are based on circular management of stocks and flows of materials, taking into account the limits and regenerative capacities of our planet. It was therefore deemed essential to provide a common vision of the implementation of the circular economy in Luxembourg and practical guidance to the public, companies, municipalities and state administrations.

Faced with crucial challenges related to the availability and distribution of resources, but above all those related to the negative social and environmental impacts of current modes of production and consumption, the strategy was developed jointly by four ministries in Luxembourg: the Ministry of Energy and Spatial Planning, the Ministry of the Economy, the Ministry of the Environment, Climate and Sustainable Development and the Ministry of Finance.

During the press conference, Economy Minister Franz Fayot said: “Since the first study carried out in 2014, the Ministry of the Economy has recognised the potential of the circular economy for Luxembourg and the opportunities it represents for companies. In the meantime, many initiatives have emerged and the circular economy has become a government priority. The objective of the strategy and its planned actions is twofold: on the one hand, to accelerate the deployment of the circular economy at the national and regional level, and, on the other hand, to position Luxembourg as a centre of skills and an international leader in the field”.

The strategy contributes to the execution of the 2018-2023 government programme, which refers to the circular economy on a recurring basis.

Environment Minister Carole Dieschbourg emphasised that "the rise of the circular economy is a necessary condition for the success of our national strategic efforts, whether in the fight against the climate crisis, the protection of resources or at the level of sustainable finances".

Energy Minister Claude Turmes added: “The national strategy will make our society more sustainable by rethinking our entire economy, from A to Z. The key sectors for the Luxembourg economy will be provided with a toolbox to unite public and private actors and develop the vision through concrete projects”.

The strategy has three major elements:

- it identifies methods and tools at the level of three key levers of government action to stimulate innovations, which are regulations and standards, financial aspects (e.g. incentives) and knowledge management with education, training and public research components, but also digitalisation and support through information and communication technologies (ICT), particularly for data management;

- it proposes a methodology for activating the processes and tools in a certain number of key economic sectors, through concrete projects which are piloted by public actors but carried out in co-creation with the main stakeholders;

- it provides for a close and continuous consultation mechanism between the ministries responsible for the strategy, as well as communication tools, aimed at supporting those responsible for implementation projects.