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On Wednesday 10 January 2024, Luxembourg's Government Council adopted a bill and the draft Grand-Ducal regulations extending by six and three months the sustainable housing financial aid scheme and the mobility financial aid scheme, respectively.

The first draft was aimed at extending by six months the “top-ups” of the “Klimabonus Wunnen” (sustainable housing) financial aid scheme for the promotion of sustainability, rational use of energy and renewable energies in the field of housing, introduced following the tripartite negotiations at the end of 2022.

Subject to the finalisation of legislative and regulatory procedures, the following provisions will be extended by six months:

  • 25% increase in financial aid allocated for sustainable energy sanitation;
  • increase in bonus when replacing an existing fossil fuel boiler;
  • 25% increase in financial aid allocated for photovoltaic solar installations operated in self-consumption mode.

The Governing Council also adopted a draft grand-ducal regulation aimed at extending by 3 months (from April to June 2024) and under unchanged conditions the “Klimabonus Mobilitéit” (mobility) financial aid scheme for the promotion of road vehicles with zero CO2 emissions.

This aid scheme concerns both pure electric (so-called '100% electric') and hydrogen fuel cell motorised vehicles (financial aid for 'plug-in' rechargeable hybrid vehicles being limited to vehicles ordered before the end of 2021) and active mobility with a subsidy for bicycles and pedal-assisted cycles (pedelec25).

Subject to the finalisation of the regulatory procedure, existing financial aid will thus be maintained as is, namely financial aid of €8,000  for 100% electric cars, provided that the vehicle's electrical energy consumption does not exceed not 180 Wh/km (equivalent to 18 kWh/100 km). This threshold was increased to 200 Wh/km, provided that the maximum net power of the propulsion system of the 100% electric car is less than or equal to 150 kW.

For cars whose electrical energy consumption exceeds the threshold of 180 Wh/km, the amount of the bonus of €3,000 is also renewed. The same applies to the bonus of €8,000 allocated for cars with seven or more seats, provided that the applicant for aid is part of a household of at least five people, to take into account the needs of large families.

For 100% electric vans and hydrogen fuel cell cars, the amount of the premium remains unchanged at €8,000. For other 100% electric vehicles (quadricycles, motorcycles and mopeds), as well as for pedal-assisted bicycles and cycles, the current amounts of financial aid are also extended for three months.

This extension concerns vehicles ordered no later than 30 June 2024 and whose first entry into circulation takes place before 31 March 2025, to take delivery times into account. For vehicles not subject to a registration obligation (bicycles and pedelecs25), the extension applies to vehicles purchased no later than 30 June 2024.

The government noted it will carry out a more in-depth analysis in early 2024 to refine, if necessary, the graduation of financial aid for 100% electric cars and vans applicable beyond June 2024.