On Wednesday 21 October 2026, the Luxembourg Chamber of Employees (CSL) and local non-profit organisation Mouvement Ecologique held a joint press conference at the CSL headquarters.

During the press conference, CSL President Nora Back, CSL Director Sylvain Hoffmann and Mouvement Ecologique President Blanche Weber presented their joint position on the proposed legislation concerning social leasing for zero-emission vehicles and the reintroduction of tax advantages for company cars.

The two organisations stressed the need to reduce emissions from the transport sector, which accounts for around 60% of Luxembourg's emissions, to meet the country's climate targets. Luxembourg aims to reduce CO₂ emissions by 55% by 2030 compared with 2005 levels.

Under the National Energy and Climate Plan (PNEC), battery-electric vehicles and plug-in hybrids should account for 49% of Luxembourg's passenger car fleet by 2030. Their current share stands at 14%, including 9.9% battery-electric vehicles and 4.1% plug-in hybrids.

Company Car Taxation

The CSL and Mouvement Ecologique opposed the planned reintroduction of more favourable tax treatment for plug-in hybrid company cars from 2027.

Referring to research by Transport & Environment, they highlighted that real-world CO₂ emissions from plug-in hybrids can be three to six times higher than official figures. They also criticised the inconsistency of providing tax advantages for these vehicles while excluding them from the Klimabonus Mobilitéit subsidy scheme.

According to figures cited in the joint position, only 8% of employees have a company car, with higher-income earners benefiting disproportionately. The existing tax treatment is estimated to result in more than €130 million in lost tax revenue annually. The proposed changes would lead to an additional €5 million in annual revenue losses, according to government estimates.

Social Leasing for Electric Vehicles

The two organisations welcomed the planned introduction of social leasing for electric vehicles but called for substantial changes to the draft legislation to ensure the scheme achieves its intended objectives.

The proposed programme would be limited to households receiving the households receiving the cost-of-living allowance (CVC). The proposed amendments would extend eligibility to households meeting the financial criteria, regardless of whether they currently receive the allowance.

They also called for the removal of the one-contract-per-household restriction and the inclusion of cross-border workers under comparable income conditions.

Regarding the cost of charging electric vehicles, the organisations argued that a socially balanced leasing scheme should also include measures to reduce the financial burden on beneficiaries.

The programme is expected to support 7,800 households between 2027 and 2032, with a total budget of €77.94 million. By comparison, approximately 44,000 households are expected to qualify for the CVC in 2027.

The CSL and Mouvement Ecologique therefore called for additional funding and broader eligibility to ensure that social leasing reaches more low-income households.