Luxembourg Extends Klimabonus Subsidy Scheme for Private Landowners

Luxembourg's Ministry of the Environment, Climate and Biodiversity has announced the extension of the "Klimabonus" environmental subsidy scheme to include new financial support for private landowners committed to preserving ecosystems.

On Monday 12 May 2025, Luxembourg's Minister of the Environment, Climate and Biodiversity, Serge Wilmes, presented this new financial aid at a press conference. In accordance with the 2023-2028 coalition agreement and in line with his reported desire to strengthen commitment and funding for the conservation and restoration of ecosystems, Minister Wilmes launched a new subsidy programme, "Klimabonus Mouer a Wiss", dedicated to private landowners in wetlands and flower meadows located in the countryside. At the same time, the ministry has updated the existing "Klimabonus Bësch" (forest) programme. These two programmes aim to support private landowners in implementing measures to strengthen ecosystems on their land and mitigate the effects of climate change.

The ministry recalled that ecosystems, such as grasslands, wetlands and forests, play an essential role in the environment and are home to a rich biodiversity. The services they provide benefit society, particularly as nature-based solutions have proven essential for adapting to and mitigating the effects of climate change.

Among their many contributions, these ecosystems: absorb and store carbon; regulate the water regime, thus contributing to flood protection, limiting the effects of droughts and buffering the effects of heatwaves; contribute to groundwater renewal; work to combat soil erosion; constitute refuge areas for rare or endangered species; ensure the maintenance and improvement of ecological connectivity; protect the soil; filter water and air; preserve biodiversity and provide recreational and even eco-tourism environments; provide natural products such as wood.

The ministry added that the conservation, restoration or improvement of these ecosystems, as well as maintaining their proper functioning and the services they provide, are therefore essential for the health and resilience of society.

To reward landowners' commitment to providing these ecosystem services, two "Klimabonus" incentives have been established: the "Klimabonus Bësch" incentive (introduced in 2021, updated in March 2025) for the forest environment; the "Klimabonus Mouer a Wiss" incentive (introduced in March 2025) for the "open" environment.

Klimabonus Bësch

The "Klimabonus Bësch" subsidy, intended exclusively for private forests, aims to reward private forest owners who provide the vital services that forests offer to society as a whole through sustainable forest management. Since its launch, more than 600 applications have been received, and to date, 6,526.30 hectares, including 3,687.19 hectares in protected areas, have benefited from this subsidy.

In order to enhance fairness and better address the realities of private forest ownership, the Grand-Ducal Regulation of 6 March 2025 has adapted the regulation of 16 April 2021, establishing a subsidy for ecosystem services in forest areas, as follows: reducing the minimum eligible area from 0.5 hectares to 0.3 hectares; the thresholds for the levels are now set at 50 ha and 100 ha (compared to 100 ha and 200 ha previously).

The ministry recalled that beneficiaries are committed to this for ten consecutive years, from 1 January following the approval of the grant until 31 December of the tenth year. A transitional provision stipulates that the subsidies already granted by the 2021 regulation will be maintained until their commitment expires after ten years.

The conditions and relevant forms are available on Guichet.lu here.

Klimabonus Mouer a Wiss

Building on the success of subsidies to private owners of forest land, the Grand Ducal Regulation of 6 March 2025 established the "Klimabonus Mouer a Wiss" subsidy, aimed at encouraging the conservation, restoration and improvement of sensitive wetlands and grasslands rich in species. This is the first open-environment subsidy of its kind aimed at private landowners, explicitly recognising the services they provide to society through the biotopes they host on their property, noted the ministry.

Eligible land must: contain protected biotopes or habitats of community interest related to wetlands or sensitive, species-rich grasslands - as recorded in the biotope register; be contiguous with at least 0.3 hectares of eligible land; be located on land in a green zone.

"The new 'Klimabonus Mouer a Wiss' is the first grant under this aid scheme for private landowners in open areas. Wetlands and flower meadows are essential habitats for many native species and, along with forests, are among the most important carbon sinks and water reservoirs. This programme helps strengthen biodiversity while protecting the climate," stated Minister Wilmes.

The beneficiary is again committed for ten consecutive years, from 1 January following the approval of the grant until 31 December of the tenth year.

The conditions and forms are available on Guichet.lu here.