Luxembourg's Ministry of the Environment, Climate and Sustainable Development has confirmed the three main components of the new climate bill that addresses the country's self-imposed target of reducing greenhouse gas emissions by 55% by 2030 and achieving "net zero emissions" in Luxembourg by 2050 at the latest.

In its 14 August 2020 meeting, the government's cabinet adopted a series of amendments to the climate bill that establishes a clear and transparent framework to achieve this goal. With this new law, climate policy will be better anchored, better structured and will become a shared objective.

The climate bill has three parts:
1. the establishment of the Luxembourg climate policy framework including clear and transparent procedures for development and adoption:
a) the Integrated National Energy and Climate Plan (PNEC)
b) the strategy for adapting to the effects of climate change, and
c) the long-term strategy for the reduction of greenhouse gas emissions.

Sectoral climate objectives will be set in the following areas:
• energy and manufacturing industries, construction
• transport
• residential and tertiary buildings
• agriculture and forestry
• waste and wastewater treatment

2. the establishment of a special "climate and energy fund" to finance concrete measures. This fund is being reformed both in terms of its supply, eligible investments and governance. It will now be possible to finance, for example, measures to adapt to climate change in our forests.

3. the transposition into national law of Directive (EU) 2018/410 of the greenhouse gas quota trading system (ETS), which makes industry more responsible.

The government's caninet has also adopted inter-ministerial climate policy governance relating to sectoral climate objectives and established the inter-ministerial committee for climate action.