The Luxembourg Government has announced the introduction of a new financial aid scheme aimed at helping companies to acquire zero-emission heavy-duty vehicles.

In view of the tripartite agreement of 31 March 2022 aimed at strengthening Luxembourg's commitment to fighting climate change, a new aid scheme has been put in place for companies wishing to convert their fleet of road freight vehicles into zero-emission vehicles.

The new grant is based on an analysis of the most suitable propulsion technologies to stimulate the decarbonisation of the logistics sector in Luxembourg as well as the price difference between these new technologies compared to an equivalent vehicle with an internal combustion engine. The aim is to further encourage companies to invest in zero-emission technologies in order to reduce the environmental impact of their road freight transport activities.

New medium-duty and heavy-duty lorries (categories N2 and N3) equipped with zero-emission engines, such as pure electric vehicles and hydrogen fuel cell vehicles, are thus eligible for this aid. Heavy-duty vehicles equipped with an internal combustion engine with CO2 emissions below 1 g/kWh, such as hydrogen combustion engine utility vehicles, are also eligible. Added to this is the conversion (retrofitting) of combustion engine vehicles, registered in Luxembourg, into zero-emission heavy-duty vehicles.

The aid scheme also varies according to the size of the company, with the amount calculated on the basis of the additional cost, i.e. the difference between the cost of acquiring a zero-emission vehicle and the acquisition of an equivalent vehicle with an internal combustion engine, or on the basis of the conversion costs to a zero-emission vehicle for retrofitting. The aid is capped at €300,000 per group.

This aid scheme is temporary and will be subject to review in the context of the transposition into national law of the new European provisions on state aid.

Applications must be submitted online via Interested companies may also seek the support of the national innovation agency, Luxinnovation, in order to prepare their applications.