Luxembourg's Minister of the Environment, Climate and Sustainable Development, Carole Dieschbourg, and Minister of Energy, Claude Turmes, presented the details of the draft national climate and energy plan at a press conference on Friday; the plan had been approved that same day by the Cabinet.
In accordance with the EU regulation whereby Member States are required to establish an integrated national energy and climate plan for the period 2021-2030, Luxembourg has revealed its plan, which sets the national targets for reducing greenhouse gas emissions by 55% by 2030.
The plan illustrates the policies and measures to achieve these ambitious national goals and provides a roadmap that will be put into practice through the adoption of regulations and programmes in specific areas. It will be subject to public consultation and will be tabled with the European Commission early next year.
According to the respective ministers, the plan is guided by the following fundamental principles: ambitious goals; effective measures; enhanced support programmes ("Klimabonus"); social equity and the "polluter pays" (fossil fuel prices) principle.
The plan targets five sectors: energy and manufacturing industries, plus construction; transport network; residential and tertiary buildings; agriculture and forestry; waste and wastewater treatment.
Energy and manufacturing, construction
- Support package for energy efficiency, including de-risking
- Use and promotion of renewable energies (obligation to ensure possibility of installing photovoltaic systems on new constructions; advantageous pricing for the promotion of photovoltaics; promotion of geothermal energy, heat pumps and wind energy, etc.)
- Substantial development of public transport, including plans for 100% electric RGTR buses by 2030 and free public transport from March 2020
- Reduction of diesel sales
- Rapid development of decarbonised mobility, including an "Electromobility Roadmap", tax reform for motor vehicles, a reassessment of the benefit in kind for company cars (leasing) and the promotion of green hydrogen
Residential and tertiary buildings
- An ambitious renovation strategy that entails the introduction of a new energy class A + for residential buildings, as well as a new "Nearly Zero Energy Standard" for tertiary buildings
- An exit plan for oil heating
- The use and promotion of renewable energies
Agriculture and forestry
- A strategy to reduce methane emissions
- The reduction of fertilisation with nitrogen
- Aim for 20% organic farming in 2025
- Sustainable forest management
Waste and wastewater treatment
- "Null Offall Lëtzebuerg" zero waste strategy
- Heat recovery from waste incineration
- The promotion and development of the circular economy
In addition, the ministers explained how the national climate and energy plan aims to support individuals and businesses in their efforts to implement the ecological and energy transition. This will include the "PRIMe House" reform, assistance for vehicles with zero or low CO₂ emissions ("clever fueren"), programmes promoting energy efficiency measures in industry, support programmes for both the rapid development of decarbonised mobility and forest protection, and assistance for climate protection in the field of agriculture
Regarding the "polluter pays" principle, the ministers announced the introduction of carbon pricing in Luxembourg, which will be adjusted continuously in line with the objectives of the Paris Climate Agreement.. The starting price will be the average value of CO2 pricing in neighbouring countries. For the year 2021, this represents around €20 per tonne of CO2. For the years 2022 and 2023, an increase of €5 per tonne of CO2 is expected. Implementing provisions on the price of CO2 will be developed as part of the preparations for the tax reform. Regular monitoring and, if necessary, adjustment of CO2 pricing will be carried out.
The implementation of the carbon pricing will be ensured by a targeted use of revenues. These will be used in a balanced way between concrete measures of financing the ecological and energy transition and targeted social assistance.
Finally, both the state and the municipalities will play an important role as precursors in the field of ecological and energy transition. Efforts will be thus strengthened and particular emphasis placed on the following measures: a renovation and photovoltaic programme for public buildings; the Klimapakt 2.0 (climate pact); the Luxembourg LED 2025 Initiative; effective fleet management; the purchase of sustainable products; schools that respect the climate.