Luxembourg's Ministry of the Environment, Climate and Sustainable Development has announced the extension of the financial aid scheme for zero and low-carbon emission vehicles.

Following the Cabinet's approval on Friday 29 November 2019, the financial aid scheme has been extended by one year. This decision reflected the Luxembourg government's desire to further promote electromobility, considered a key component of the decarbonisation efforts of the transport sector. Indeed, electromobility forms an integral part of the draft integrated energy and climate plan for the period 2021-2030, which aims to reduce greenhouse gas emissions by 55% by 2030 compared 2005.

Financial aid is divided as follows:

1. Self-propelled vehicles

The amount of financial assistance for the purchase of new vehicles (in the form of a grant) will remain unchanged for the year 2020:
• €5,000 for 100% electric cars and vans;
• €2,500 for hybrid plug-in type cars and vans with CO₂ emissions of less than or equal to 50 g/km. For hybrid plug-in vehicles put into circulation for the first time from 1 June 2020, the combined values ​​of CO2 emissions from the WLTP test cycle will be taken into account;
• up to €500 for the following 100% electric vehicles: quadricycle, motorcycle, light motorcycle (125 cm3) and moped (scooter and pedelec45). The amount of the grant is 25% of the VAT cost of the vehicle, up to €500.

In line with the government's technology-neutral approach to zero-emission vehicles, hydrogen fuel cell cars and vans are also eligible for the €5,000 grant.

The beneficiaries and conditions of eligibility for the grant similarly remain unchanged. Financial aid is reserved for private individuals and legal persons who own a vehicle registered in Luxembourg. In the case of a lease or leasing agreement, the financial assistance may be granted to the holder of the vehicle entered on the registration certificate or identified on the rental or leasing contract, provided that the owner of the vehicle waives the aid in question and that the vehicle is registered in Luxembourg.

Financial assistance is available for vehicles first put into circulation between 1 January 2019 and 31 December 2020 inclusive, which have not yet been registered abroad. A minimum period of retention by the applicant of 7 months will apply.

2. Bicycles and pedelecs25: children's bicycles now eligible

In order to promote cycling as an ecological means of transport, the government will also renew by one year the subsidy of up to €300 for the purchase of a bicycle or a pedelec25 (pedal-assisted bike with a power not exceeding 0.25 kW). The amount of the grant is 25% of the VAT cost of the bicycle or pedelec25, up to €300.

The financial aid is reserved for natural persons residing in the Grand Duchy, both adult and children, who have acquired a bicycle or pedelec25. Only one financial aid per person for either a bicycle or a pedelec25 is granted within a period of five years.

The grant is allocated for new bicycles and pedelecs25 for which the invoice is issued in 2019 or 2020. No minimum holding period is required.

3. Procedures for obtaining bonuses

Requests for grants (cars and bicycles / pedelecs25) are to be made to the Environment Administration, via a form available on It is recalled that, except for bicycles and pedelecs25, applications for grants may be submitted no earlier than seven months after the date on which the vehicle was registered in the name of the applicant for financial assistance.

The grants are awarded by the Ministry of Environment, Climate and Sustainable Development through the Climate and Energy Fund.

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