On Wednesday 8 December 2020, Luxembourg Members of Parliament (MPs) passed the country's first climate law by 54 votes to 4.
Just ahead of the 5th anniversary of the Paris Agreement on 12 December 2020, Luxembourg has adopted a national climate law for the first time. The Ministry of the Environment, Climate and Sustainable Development, presented the bill in the Chamber of Deputies (Parliament) on Wednesday. The bill passed with 54 votes in favour, four votes against and two abstentions.
This bill has been designed in line with the Paris Agreement and fits into an important week for climate protection throughout Europe. On Thursday, European heads of state and government will decide on higher ambitions and debate the minimum target of 55% emission reductions, to which Luxembourg is now also officially making a contribution through its national climate law.
Despite criticism that the bill does not go far enough, two of the opposition parties, CSV and the Pirate Party, voted for the bill, whilst the Left abstained and ADR voted against it. The bill has been designed according to the Paris Climate Agreement. It regulates the legalities of the national climate and energy plan and establishes a new climate fund.
In Luxembourg, the new law will create a "climate platform" bringing together representatives of public players, civil society, businesses and investors in the preparation and monitoring of the implementation of the national energy and climate plan. A newly created, independent observatory will scientifically monitor the implementation of climate policy and advise the government accordingly.
More climate protection also means additional investment and financial support. The Climate and Energy Fund, as a key instrument for financing climate policy, will be further strengthened. Partly funded by the new CO2 tax (to be introduced in January 2021), this fund will in future be able to finance a wide range of measures in the areas of climate protection, renewable energies, energy efficiency and sustainable finance, not only in Luxembourg but also in developing countries.
189 of 197 Contracting Parties (including Luxembourg) have ratified the Paris Agreement to date and are ready to implement it from 1 January 2021.