WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/EU/24 
24 Octobre 2012 
 (12-5811) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed by the UNITED STATES1 Regarding the New 
and Full Notification of the EUROPEAN UNION2 
  
 The following communication, dated 22 October 2012, is being circulated at the request of the delegation of the European Union. 
 
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Luxembourg 
 
System of Aid for the Protection of the Envi ronment, the Rational Use of Energy and the 
Production of Energy from Renewable Sources that Expired in 2007  
 
Background information and explanations  
 
 The objective of this scheme, which was introduced in February 22nd, 2004, and replaced by 
the law dated February 2010, is to provide support to  those activities that fost er the protection of the 
environment, the rational use of energy, the prod uction of electricity through renewable energy 
sources and the combined production of heat and pow er.  The latest environmental protection law 
defines six different aid schemes.   
 The incentives available under this aid scheme consist of a cash grant only.  
 
Question 1 
 
 This program is described as being grante d to "enterprises meeting the criteria in 
Article 1 of the Law [Law of 22 February 2004] ."  Please provide further information on the 
eligibility criteria for companies to receive incentives under this program.  For example, please 
explain what criteria are included in Article 1 of the Law. 
 
System of Aid for the Protection of the Envi ronment, the Rational Use of Energy and the 
Production of Energy from Renewable Sources in Force since 18 February 2010  
                                                      
1 G/SCM/Q2/EU/20.   
2 G/SCM/N/220/EEC/Add.17.   G/SCM/Q2/EU/24 
Page 2 
 
 
  Reply 
 
a) Article 1 of the (expired) law of February 22nd, 2004, allowed the following companies to 
benefit from the environmental aid scheme in case they made investments aiming to protect 
the environment and the rational use of energy: 
 
 Industrial companies 
 Service providers (the latter should be able to demonstrate that their activities have a 
significant impact on the development of the Luxembourg economy).  
 
b) Article 1 also foresaw capital aids in favour of investments made for the production of energy 
through renewable energy sources.  This aid sc heme applied to all companies established in 
Luxembourg and provided they had their business activity on the Luxembourg territory. 
 
c) The companies of the following sectors were excluded from the aid scheme: 
 
 Agriculture 
 Fishery 
 Fish farming.   
 
Question 2 
 
 This program is described as being grante d to "enterprises meeting the criteria in 
Articles 4 to 9 of the Law [Law of 18 February  2010]".  Please provide further information on 
the eligibility criteria for compan ies to receive incentives under this program.  For example, 
please explain what criteria are included in Articles 4 to 9 of the Law. 
 
Reply 
 
 The law of February 18th, 2010, foresees capital grants in favour of the following investments: 
 
a) Capital grants for investments allowing comp anies to exceed EU standards / Community 
standards or to increase the environmental protection level despite the absence of such 
standards (article 4).  
 This scheme applies to investments allowing the beneficiaries to exceed applicable EU 
standards, irrespective of the existence or the absence of more rigorous national standards.  
 The scheme also applies to investments allowing the beneficiaries to increase the 
environmental protection level resulting from th e beneficiary’s activities despite the absence 
of EU standards.  
 
b) Capital grants for small and medium sized businesses for their early adaption to future 
European / Community standards (article 5). 
 This scheme allows small and medium sized co mpanies to benefit from a cash grant if they 
decide to adapt to - not yet applicable - EU st andards in order to enhance the protection of the 
environment.  
 
c) Capital grants for investments in energy saving projects (article 6).  
 This aid scheme applies to all companies inv esting in energy saving programs, meaning every 
action undertaken to substantially reduce the energy consumption, particularly during the 
production process.   G/SCM/Q2/EU/24 
 Page 3 
 
 
  d) Capital aids for investments in high- efficiency cogeneration (article 7). 
 Cogeneration corresponds to the simultaneous pr oduction, in one single process, of thermal 
energy and electric and/or mechanical power.  Companies investing in an energy saving 
combined heat and power plant may benefit from this aid scheme.  
 
e) Capital aids for investments in the production of  electricity through renewable energy sources 
(article 8). 
 This aid scheme supports companies inves ting in energy production through renewable 
energy sources.  As those are defined all sorts of non-fossil and non-nuclear renewable 
energies, such as wind power, solar power, geot hermal heat, biomass energy or gazes from 
waste water treatment plants.  
 
f) Capital grants for environmental studies (article 9).  
 In general, this aid scheme applies to studies to be carried out before the implementation of 
investments as mentioned under a), c) and e).  
 
 The law applies to all companies or natu ral persons holding a business permit and whose 
primary or ancillary business involves carrying out industrial, commercial or handicraft activities in 
Luxembourg.  
 
 The companies of the following sectors are excluded from the aid scheme: 
 
 Fishery 
 Fish farming 
 Primary production of agricultural products  
 Transformation and sale of agricultural products 
 Companies facing economic and financial problems  
  
 
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