On Tuesday 23 July 2024, the European Commission gave a positive assessment of Luxembourg's amended recovery and resilience plan, which includes a REPowerEU chapter.
The plan, now with €241.1 million in grants, covers ten reforms and thirteen investments.
Luxembourg's REPowerEU chapter consists of a new reform and three new investments aimed at achieving the REPowerEU plan's objectives of making Europe independent of Russian fossil fuels well before 2030. These measures reportedly focus on the deployment of renewable energy, increasing energy efficiency and sustainable transport.
In addition to the new measures in the REPowerEU chapter, the revised recovery and resilience plan includes the withdrawal of one investment and the modification of three others. Luxembourg's changes to the original plan are the result of the need to take into account: the objective circumstances preventing certain investments from being carried out as initially planned, such as unforeseen technical and legal difficulties beyond the control of national authorities and the availability of better, administratively simpler solutions to achieve the initial ambition.
Further boost to Luxembourg's green transition
The amended plan further strengthens the focus on the green transition, allocating 80% of the available funds to measures that support climate objectives (more than 69% in the original plan).
The new reform and investments in the REPowerEU chapter contribute significantly to the green dimension of the plan, according to the European Commission.
The reform, namely the introduction of a national biogas strategy, modifies Luxembourg's support programme for biogas and contributes to increasing the production and use of sustainable biomethane.
The investments are financial support mechanisms designed to accelerate the green transition. They cover projects for the construction and energy renovation of housing, the purchase of zero-emission cars, utility vehicles, mopeds and bicycles and photovoltaic power plants for self-consumption in companies.
Strengthening Luxembourg's digital readiness and social resilience
The high digital ambition and social dimension of the plan are maintained.
The revised plan devotes 37.5% of its total financial envelope to supporting the country's digital transition, well above the target of 20%. Luxembourg's plan reportedly covers measures to digitalise public administration and the healthcare system, as well as an ultra-secure communication infrastructure based on quantum technology.
The strong social dimension of the plan is also maintained. The plan includes a skills component, aims for more efficient public services and includes a reform dedicated to affordable housing (Housing Pact 2.0).
The next step after the European Commission's assessment is approval by the Council.
The Commission noted it will authorise further disbursements when Luxembourg has satisfactorily achieved the milestones and targets set out in its revised recovery and resilience plan, reflecting progress in implementing investments and reforms.
