G/SCM/N/253/EU/Add.17  
11 October 2013  
(13-5562)  Page: 1/11  
Committee on Subsidies and Countervailing Measures  Original: French  
 
  SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE GATT 1994 
AND ARTICLE 25 OF THE AGREEMENT ON SUBSIDIES AND 
COUNTERVAILING MEASURES 
EUROPEAN  UNION 
Addendum 
The following addendum to the notification of the European Union relates to the subsidy 
programmes of Luxembourg . 
 
_______________ 
  G/SCM/N/253/EU/Add.17 
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  LUXEMBOURG  
TABLE OF CONTENTS 
1  SME AID SCHEMES ....................................................................................................... 3  
2  AID SCHEME FOR REGIONAL ECONOMIC DEVELOPMENT THAT EXPIRED 
IN 2006 ............................................................................................................................ 3  
3  AID SCHEME FOR REGIONAL ECONOMIC  DEVELOPMENT IN FORCE SINCE 2008 .......... 4  
4  AID SCHEME FOR R&D TH AT EXPIRED IN 2009 ............................................................ 5  
5  R&D AID SCHEME IN FORC E SINCE 5 JUNE 2009 ......................................................... 6  
6  AID SCHEME FOR THE PROTECTION OF THE ENVIRONMENT, THE RATIONAL 
USE OF ENERGY AND THE PRODUCTION OF ENERGY FROM RENEWABLE 
SOURCES THAT EXPI RED IN 2007 .................................................................................... 7  
7  AID SCHEME FOR THE PROTECTION OF THE ENVIRONMENT, THE RATIONAL 
USE OF ENERGY AND THE PRODUCTION OF ENERGY FROM RENEWABLE 
SOURCES, IN FORCE SINCE 18 FEBRUARY 2010 ............................................................... 8  
8  REGULATED-TARIFF SCHEME FOR ELECTRICITY PRODUCED FROM 
RENEWABLE ENERGY SOURCES OR BY COGENE RATION ................................................... 8  
8.1  Regulated-tariff scheme for electricity produced from renewable energy sources 
and fed into the network of a grid oper ator, in force sinc e 1 January  2008 ................................ 8  
8.2  Regulated-tariff scheme for electricity produced by high-efficiency cogeneration 
and fed into the network of a grid operator ........................................................................... 9  
9  REGULATED-TARIFF SCHEME FOR BIOGAS FED INTO THE NATURAL GAS 
NETWORK OF A GRID OPERATOR, IN  FORCE SINCE 1 JANUARY 2011 ............................ 10  
 G/SCM/N/253/EU/Add.17 
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  1  SME AID SCHEMES 
1. Title of subsidy programme 
Aid to SMEs. 
2. Period covered by the notification 
2009-2012. 
3. Policy objective of aid scheme 
To promote productive investment by SMEs. 
4. Legal basis 
Amended Law of 27 July 1993 (Article 4), the objectives of which are: 
1. economic development and diversification; 
2. improvement of the economy's over all structure and regional balance. 
5. Form of the aid 
Capital subsidy. 
6. Beneficiaries of the aid and allocation mechanism 
The aid is granted by ministerial decision to  SMEs which meet the community definition. 
7. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the av erage subsidy per unit in the previous year) 
Actual expenditure: 
2009: 
2010: 
2011: 2012: €1.5 million 
€2.9 million 
€3.4 million €3.5 million 
8. Duration of the subsidy and/or any other time-limits attached to it 
Indefinite. 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
Not available. 
2  AID SCHEME FOR REGIONAL ECONOMIC DEVELOPMENT THAT EXPIRED IN 2006 
1. Title of subsidy programme 
Aid to enterprises in disadvantaged regions. 
2. Period covered by the notification 
2009-2012. G/SCM/N/253/EU/Add.17 
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  3. Policy objective of aid scheme 
Economic development and diversification of disadvantaged regions. 
4. Legal basis 
Law of 22 December 2000, the objective of which is the economic development of certain regions 
of the country. 
5. Form of the aid 
Capital subsidy. 
6. Beneficiaries of the aid and allocation mechanism 
The aid is granted by ministerial decision to enterp rises meeting the criteria in Articles 2, 3, and 6 
of the Law. The Law expired on 31 December 2006. The expenditures from 2009 and 2010 arise 
from commitments made prior to the year-end 2006 expiration date. 
7. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the av erage subsidy per unit in the previous year) 
Actual expenditure: 
2009: 
2010: 
2011: 
2012: €6.6 million 
€1.7 million 
0 
0 
8. Duration of the subsidy and/or any other time-limits attached to it 
Expiration of the Law on 31 December 2006. 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
Not available. 
3  AID SCHEME FOR REGIONAL ECONOMIC DEVELOPMENT IN FORCE SINCE 2008 
1. Title of subsidy programme 
Aid to enterprises in disadvantaged regions. 
2. Period covered by the notification 
Financial years 2009-2012. 
3. Policy objective of aid scheme 
Economic development and diversification of disadvantaged regions. 
4. Legal basis 
Law of 15 July 2008, the objective of which is the economic development and diversification 
of certain regions. 
5. Form of the aid 
Capital subsidy. G/SCM/N/253/EU/Add.17 
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  6. Beneficiaries of the aid and allocation mechanism 
A new regional aid scheme was established under the Law of 15 July 2008, which replaces the 
previous Law of 22 December 2000. The aid is gr anted by ministerial decision to enterprises 
meeting the criteria in Articles 3, 4 and 7 of the Law. 
7. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the av erage subsidy per unit in the previous year) 
Actual expenditure: 
2009: 
2010: 
2011: 
2012: €1.6 million 
€3.4 million 
€5.4 million 
€1.5 million 
8. Duration of the subsidy and/or any other time-limits attached to it 
Expiration of the Law on 31 December 2013. 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
Not available. 
4  AID SCHEME FOR R&D THAT EXPIRED IN 2009 
1. Title of subsidy programme 
Promotion of research, development and innovation. 
2. Period covered by the notification 
2009-2012. 
3. Policy objective of aid scheme 
To promote the development of technologies for new products and processes. 
4. Legal basis 
Amended Law of 27 July 1993 (Article 6), the objectives of which are: 
1. economic development and diversification; 
2. improvement of the economy's over all structure and regional balance. 
5. Form of the aid 
Capital subsidy. 
6. Beneficiaries of the aid and allocation mechanism 
The aid is granted by ministerial decision to enterp rises meeting the criteria in Article 6 of the Law. 
The Law was repealed by a new instrument in mid-2009. The expenditures from 2009 and 2010 
arise from commitments made prior to the expiration date in 2009. G/SCM/N/253/EU/Add.17 
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  7. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the av erage subsidy per unit in the previous year) 
Actual expenditure: 
2009: 
2010: 2011: 
2012: €20.0 million 
€8.42 million €7.40 million 
€6.72 million 
8. Duration of the subsidy and/or any other time-limits attached to it 
Indefinite. 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
Not available. 
5  R&D AID SCHEME IN FORCE SINCE 5 JUNE 2009 
1. Title of subsidy programme 
Promotion of research, development and innovation. 
2. Period covered by the notification 
2010-2012. 
3. Policy objective of aid scheme 
To promote the development of technologies for new products and processes. 
4. Legal basis 
Law of 5 June 2009, the objective of which is to promote research, development and innovation. 
5. Form of the aid 
Capital subsidy. 
6. Beneficiaries of the aid and allocation mechanism 
A new R&D scheme was established under the Law of 5 June 2009, which repeals and replaces the 
previous Law of 27 July 1993. 
7. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the av erage subsidy per unit in the previous year) 
Actual expenditure: 
2010: 
2011: 
2012: €10.52 million 
€24.43 million 
€26.78 million 
8. Duration of the subsidy and/or any other time-limits attached to it 
Expiration of the Law on 31 December 2013. G/SCM/N/253/EU/Add.17 
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  9. Statistical data permitting an assessment of the trade effects of the subsidy 
Not available. 
6  AID SCHEME FOR THE PROTECTION OF THE ENVIRONMENT, THE RATIONAL USE 
OF ENERGY AND THE PRODUCTION OF ENERGY FROM RENEWABLE SOURCES THAT 
EXPIRED IN 2007 
1. Title of subsidy programme 
Promotion of environmental technology. 
2. Period covered by the notification 
Financial years 2009-2012. 
3. Policy objective of aid scheme 
To promote investment to protect the environment and implement new techniques for the rational 
use and the production of energy from renewable energy sources. 
4. Legal basis 
Law of 22 February 2004 introducing an aid sch eme for the protection of the environment, 
the rational use of energy and the production of  energy from renewable sources. The Law expired 
on 31 December 2007. The expenditures from 20 09 and 2010 arise from commitments made prior 
to the year-end 2007 expiration date. 
5. Form of the aid 
Capital subsidy. 
6. Beneficiaries of the aid and allocation mechanism 
The aid is granted by ministerial decision to enterp rises meeting the criteria in Article 1 of the Law. 
7. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the av erage subsidy per unit in the previous year) 
Actual expenditure: 
2009: 
2010: 
2011: 
2012: €0.1 million 
€2.2 million 
0 
0 
8. Duration of the subsidy and/or any other time-limits attached to it 
Expiration of the Law on 31 December 2007. 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
Not available. G/SCM/N/253/EU/Add.17 
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  7  AID SCHEME FOR THE PROTECTION OF THE ENVIRONMENT, THE RATIONAL USE 
OF ENERGY AND THE PRODUCTION OF ENERGY FROM RENEWABLE SOURCES, IN FORCE SINCE 18 FEBRUARY 2010 
1. Title of subsidy programme 
Promotion of environmentally sound technologies. 
2. Period covered by the notification 
Financial years 2010-2012. 
3. Policy objective of aid scheme 
To promote investment to protect the environment and implement new techniques for the rational 
use of energy. 
4. Legal basis 
Law of 18 February 2010 introducing an aid scheme for the protection of the environment and the 
rational use of natural resources. This Law repeals and replaces the Law of 22 February 2004, which expired on 31 December 2007. 
5. Form of the aid 
Capital subsidy. 
6. Beneficiaries of the aid and allocation mechanism 
The aid is granted by ministerial decision to ente rprises meeting the criteria in Articles 4 to 9 
of the Law. 
7. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the av erage subsidy per unit in the previous year) 
Actual expenditure: 
2010: 
2011: 2012: €0.9 million 
€24.679 million €6.657 million 
8. Duration of the subsidy and/or any other time-limits attached to it 
Expiration of the Law on 31 December 2013. 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
Not available. 
8  REGULATED-TARIFF SCHEME FOR ELECTRICITY PRODUCED FROM RENEWABLE 
ENERGY SOURCES OR BY COGENERATION 
8.1  Regulated-tariff scheme for electricity pr oduced from renewable energy sources 
and fed into the network of a grid op erator, in force since 1 January 2008 
1. Title of programme 
Promotion of renewable energy. G/SCM/N/253/EU/Add.17 
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  2. Period covered by the notification 
Partly financed from the State budget since 2011. 
3. Policy objective of aid scheme 
To promote the generation of electricity based on renewable energy sources. 
4. Legal basis 
Grand-Ducal Regulation of 8 February 2008 on the generation of electricity based on renewable 
energy sources. This Regulation repeals and replaces the Grand-Ducal Regulation 
of 14 October 2005. 
5. Form of the aid 
Feed-in tariffs (operating aid). 
6. Beneficiaries of the aid and allocation mechanism 
The tariffs set by Grand-Ducal Regulation are paid  by the grid operators concerned to producers 
of electricity based on renewable energy sources wh ose facilities meet the criteria specified in the 
Regulation. Additional costs incurred by the gr id operators are offset by the compensation 
mechanism, which is financed in principle by the contributions of final electricity consumers, and may alternatively be financed from the State budget. The compensation mechanism is defined in the Grand-Ducal Regulation of 31 March 2010 on the compensation mechanism relating to the 
organization of the electricity market. 
7. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
Expenditure under the State budget: 
2011: 
2012: €12.9 million 
€19.5 million 
Up until 2011, the compensation mechanism was not financed from the State budget. The amounts in the table above were obtained from final electricity consumers. 
8. Duration of the subsidy and/or any other time-limits attached to it 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
8.2  Regulated-tariff scheme for electricity pr oduced by high-efficiency cogeneration 
and fed into the network of a grid operator 
1. Title of programme 
Promotion of high-efficiency cogeneration. 
2. Period covered by the notification 
Partly financed from the State budget since 2011. 
3. Policy objective of aid scheme 
Improved energy efficiency. G/SCM/N/253/EU/Add.17 
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  4. Legal basis 
Grand-Ducal Regulation of 26 December 2012 on the production of electricity based 
on high-efficiency cogeneration. 
5. Form of the aid 
Feed-in tariffs (operating aid). 
6. Beneficiaries of the aid and allocation mechanism 
The tariffs are paid by the grid operators concerned to electricity producers whose facilities meet 
the criteria specified in the Regulation. Additional costs incurred by the grid operators are in principle offset by the compensation mechanism, which is financed by the contributions of final 
electricity consumers calculated annually, and may alternatively be financed from the 
State budget. 
The compensation mechanism is defined in the Grand-Ducal Regulation of 31 March 2010 on the 
compensation mechanism relating to the organization of the electricity market. 
7. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
Expenditure under the State budget: 
2011: 
2012: €12.9 million 
€19.5 million 
Up until 2011, the compensation mechanism was not financed from the State budget. The amounts in the table above were obtained from final electricity consumers. 
8. Duration of the subsidy and/or any other time-limits attached to it 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
9  REGULATED-TARIFF SCHEME FOR BIOGAS FED INTO THE NATURAL GAS NETWORK 
OF A GRID OPERATOR, IN FORCE SINCE 1 JANUARY 2011 
1. Title of programme 
Promotion of renewable energy. 
2. Period covered by the notification 
As of financial year 2011. 
3. Policy objective of aid scheme 
To promote the production of energy from renewable energy sources. 
4. Legal basis 
Grand-Ducal Regulation of 15 December 2011 on  the production, compensation and marketing 
of biogas. 
5. Form of the aid 
Feed-in tariffs for biogas (operating aid). G/SCM/N/253/EU/Add.17 
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  6. Beneficiaries of the aid and allocation mechanism 
The State pays the producers of biogas, which se ll it to the beneficiaries (against payment 
of a fee) selected on the basis of a call for applications by the State. 
The producers of biogas sell it to primary suppliers  (beneficiaries) designated following a public call 
for applications. The State pays the producers according to the regulated rates. The beneficiaries 
market the biogas in accordance with market rules and pay a fee to the State equivalent to the 
volume at wholesale price of the purchased biog as calculated by the Luxembourg Regulatory 
Institution (ILR). The aid is limited to a maximum of 15 years. The volume of gas under this mechanism is limited to 10 million m
3 annually. 
7. Subsidy per unit or, where this is not possible, total amount or annual amount budgeted for 
the subsidy (indicating, if possible, the average subsidy per unit in the previous year) 
Expenditure under the State budget: 
Actual expenditure: 
2011: 
2012: €1.498 million 
€1.476 million 
8. Duration of the subsidy and/or any other time-limits attached to it 
9. Statistical data permitting an assessment of the trade effects of the subsidy 
 
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