Luxembourg

Luxembourg has an overall high rating, at 8th in the CCPI, up five spots from last year. The country receives a high rating in GHG Emissions, and medium in Energy Use, Renewable Energy, and Climate Policy.

Luxembourg submitted its current National Energy and Climate Plan (NECP) in July 2024. This package includes 200 single policy measures aimed at a 55% reduction of greenhouse gas (GHG) emissions by 2030 compared with 2005. The country is on track to reach this target. However, GHG emissions per capita are still very high (10.69 tCO2eq/capita) and well above the EU average.

A cooperative EU player with low GHG emissions in electricity and renewables subsidies

GHG emissions related to the electricity sector are low, owing to a large share of imports in the country’s electricity supply. Under the NECP package, subsidisation of domestic renewable electricity production has been strengthened through the so-called Klimabonus. These support schemes, however, entered into force rather late compared with neighbouring countries’ subsidy programs. The proportion of EVs among new registrations is quite high, owing to generous financial incentivisation.

In the buildings sector, reliance on natural gas for heating remains high, hindering progress in this area. To address this, the government launched programs (such as VAT reduction) aimed at increasing the number of heat pumps and accelerating building renovation. Internationally, Luxembourg mostly acts in line with the EU, endorsing and echoing EU positions in international climate negotiations.

Key Outcomes

CCPI experts

National experts that contributed to the policy evaluation of this year’s CCPI chose to remain anonymous.