COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Luxembourg Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK Third Report on the State of the Energy Union
Date: 2017-11-23
Institutions: European Commission, Secretariat-General
Subjects: Luxembourg, climate change policy, competitiveness, economic and social cohesion, energy cooperation, energy policy, innovation, investment, regional cooperation, single market

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.11.2017 SWD(2017) 402 final  COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet Luxembourg  Accompanying the document  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK  Third Report on the State of the Energy Union  {COM(2017) 688 final} - {SWD(2017) 384 final} - {SWD(2017) 385 final} - {SWD(2017) 386 final} - {SWD(2017) 387 final} - {SWD(2017) 388 final} - {SWD(2017) 389 final} - {SWD(2017) 390 final} - {SWD(2017) 391 final} - {SWD(2017) 392 final} - {SWD(2017) 393 final} - {SWD(2017) 394 final} - {SWD(2017) 395 final} - {SWD(2017) 396 final} - {SWD(2017) 397 final} - {SWD(2017) 398 final} - {SWD(2017) 399 final} - {SWD(2017) 401 final} - {SWD(2017) 404 final} - {SWD(2017) 405 final} - {SWD(2017) 406 final} - {SWD(2017) 407 final} - {SWD(2017) 408 final} - {SWD(2017) 409 final} - {SWD(2017) 411 final} - {SWD(2017) 412 final} - {SWD(2017) 413 final} - {SWD(2017) 414 final}  
 
 
                              Energy Union –Luxembourg 

  Luxembourg 
                           Energy Union factsheet1 

1.  Macro-economic implications of energy activities 

Energy and transport are key sectors for the overall functioning of the economy as they provide an 
important input and service to the other sectors of the economy. Together the activity in these two 
sectors2    accounted  for  5.5 %  of  the  total  value added of  Luxembourg in  2015.  Their share  in total 
employment3  was  6.5 %  in  2015,  of  which  6.1 %  in  the  transport  sector  and  0.4 %  in  the  energy 
sector. 

The  decarbonisation  of  the  energy  and  transport  sectors  will  require  significant  investments  and 
economic  activity  beyond  the  remit  of  these  sectors  themselves.  The  energy  transition  implies  a 
structural  shift  in  economic  activity.  Energy-related  investment  and  jobs  will  in  part  migrate  from 
traditional  fossil  fuel  based  activities  towards  construction,  equipment  manufacturing  and  other 
services related to the deployment of low carbon and clean energy technologies. At the moment, the 
efforts related to the low-carbon and clean energy transition in sectors beyond energy can only be 
partially quantified and are therefore not included in this analysis. 

(source: Eurostat) 

1   The indicators used in this country factsheet largely build on indicators developed for the Commission Staff 
Working  Document  "Monitoring  progress  towards  the  Energy  Union  objectives  –  key  indicators" 
(SWD(2017)  32 
final)  https://ec.europa.eu/commission/sites/beta-political/files/swd-energy-union-key-
indicators_en.pdf  
Gross value added and employment in NACE sectors D-Electricity, gas, steam and air conditioning supply and H-Transportation and storage. 

2  
3     National accounts, Eurostat 

1 

02468101214162005201520052015LUEU28[%]Value added of the sector as % of total economy gross value added EnergyTransport6.815.546.646.88Energy&Transport as % of total GVA:0123456789102005201520052015LUEU28[%]Employment in the sector as % of total employmentEnergyTransport7.176.465.575.46Energy&Transport as % of total employment: 
 
 
 
 
 
 
 
 
                                                            
 
 
 
 
                              Energy Union –Luxembourg 

In the case of renewable energy sector, both the direct as well as the indirect effects on employment 
are  being  estimated.  According  to  EurObserv'ER,  in  2015,  the  share  of  renewable  energy  related 
employment in total employment of the economy in Luxembourg was at about 0.84 %, above the EU 
average of 0.54 %. The turnover of the renewable energy industry in the same year was estimated at 
around EUR 145 million, the biggest part being attributed to biofuels (EUR 80 million), followed by 
photovoltaic (EUR 25 million), biomass (EUR 15 million) and wind (EUR 10 million) industries. 

(source: EC based on EurObserv'Er and Eurostat) 

An indication of the level of efforts and challenges encountered by Luxembourg in the energy sector 
is given by the Gross fixed capital formation (GFCF)4. Investments in the electricity and gas sectors, 
which are taken as reference sectors, have been on a decreasing trend since 2012. They represented 
around 0.6 % of the country's GDP in 2015, the lowest level since 2007.  

4  

Gross fixed capital formation consists of resident producers' acquisitions, less disposals, of fixed tangible 
or  intangible  assets.  This  covers,  in  particular,  machinery  and  equipment,  vehicles,  dwellings  and  other 
buildings.  It  also  includes  foreign  direct  investment  (FDI).  Steam  and  air  conditioning  supply  are  also 
included in the figures mentioned above, as Eurostat reports electricity, gas, steam and air  conditioning 
supply together. 

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                              Energy Union –Luxembourg 

(source: Eurostat) 

In terms of trade, Luxembourg is a net importer of fossil fuels. No data are available for electricity, 
where  Luxembourg  is  also  a  net  importer.  The  trade  deficit  in  fossil  fuels  products  has  fallen  from 
about 4.4% of GDP in 2006 to 2.4% in 2015. The decrease is almost fully accounted for by a decrease 
in the trade deficit of petroleum products.  

(source: Eurostat. No available data for electricity) 

3 

-5.0-4.5-4.0-3.5-3.0-2.5-2.0-1.5-1.0-0.50.00.52006201520062015LUEU28[% of GDP]Trade balance of energy product and current  account balanceGasOilCoalElectricity-4.43-2.38-2.24-1.69Trade balance of all energy products [%GDP]:0.0%0.1%0.2%0.3%0.4%0.5%0.6%0.7%0.8%0.9%1.0%2006200720082009201020112012201320142015[% GDP]GFCF in energy as share of GDP, Luxembourg**GFCF=Grossfix capital formation 
 
 
 
 
 
 
 
 
 
                              Energy Union –Luxembourg 

2.  Energy security, solidarity and trust 

2.1. Energy Mix 

Luxembourg's  energy  mix  differs  from  the average  energy  mix  in the EU in  one important respect: 
more than two-thirds (71.3 %) of the country's energy mix are made up by oil (petroleum products). 
In  comparison,  the  EU's  oil  share  is  close  to  one  third  (34.4 %).  The  predominance  of  oil  can  be 
explained by different factors: first, there is an important number of inbound commuters. Moreover, 
the  taxation  of  transport  fuels  is  relatively  advantageous,  which  incentivises  motorists  from 
neighbouring  countries  to  purchase  fuel  in  Luxembourg.  In  addition,  Luxembourg's  energy  mix  is 
notable for the absence of nuclear energy and for a lower than average share of renewable energy 
sources  (5.5 %).  The  EU's  average  share  of  renewable  energy  sources  is  13.0 %  (unless  specified 
otherwise, all figures are for 2015). 

 (source: Eurostat) 

2.2. Import dependency and security of supply 

Luxembourg is one of the Member States with the highest energy import dependency. In 2015, the 
EU covered on average 54.1 % of its gross inland consumption with imported energy carriers, but for 
Luxembourg, the figure was nearly double (95.9 %), with only a slight improvement as compared to 
twelve years earlier (-1.5 percentage points). Luxembourg's import dependency can be attributed to 
the absence of domestic natural resources (a situation no different for many other Member States). 
Also, the number of adequate sites for wind and solar energy installations may be limited, given the 
country's relatively small size.  

In  2015,  Luxembourg's  biggest  non-EU  suppliers  for  gas  imports  were  Norway  (63.9 %)  and  Russia 
(25.3 %).  For  hard  coal,  they  were  South  Africa  (84.9 %)  and  Russia  (8.2 %).  Luxembourg  improved 
the diversification of hard coal imports; and presumably also for gas. However, in 2005, gas imports 
were reported as "not specified", so the extent of supply diversification is difficult to verify. There are 
no imports of crude oil, but only of refined petroleum products. 

4 

 
 
 
 
 
 
     
 
 
                              Energy Union –Luxembourg 

 (source: Eurostat) 

The  EU  Regulation  on  the  security  of  gas  supply  sets  the  so-called  "N-1  rule  for  gas":  if  the  single 
largest  gas  infrastructure  fails  in  one  Member  State,  the  capacity  of  the  remaining  infrastructure 
needs  to  be  able  to  satisfy  total  gas  demand  during  a  day  of  exceptionally  high  gas  demand.  This 
condition is met if the value of the N-1 indicator is equal to or above 100 %. Luxembourg does not 
meet the N-1 requirement, but in fact, the country has a derogation from complying with the rule.  

3.  Internal market 

3.1. Interconnections and wholesale market functioning 

3.1.1.  Electricity 

(source: EC services based on ENTSOE)     (source: EC services based on Eurostat)      

Luxembourg's electricity grid is interconnected with Belgium, France and Germany. In fact, it is the 
EU Member State with the highest electricity interconnection rate. The interconnection target set at 

5 

 
 
 
 
 
 
 
 
 
                              Energy Union –Luxembourg 

EU  level  is  10 %,  which  means  that,  by  2020,  the  electrical  interconnection  capacity  with 
neighbouring Member States should equal at least 10 % of the Member State's installed production 
capacity. In 2017, Luxembourg's interconnection level5 was 109.2 %. 

Luxembourg  is  currently  involved  in  one  electricity  interconnection  project  with  Belgium,  between 
Aubange  (in  Belgium)  and  Bascharage  /  Schifflange  (in  Luxembourg).  This  project  has  an  expected 
commissioning date of 2020. 

The concentration of the power generation market is above EU average; only slightly lower than ten 
years ago. 

3.1.2.  Gas 

In  contrast,  the  concentration  of  wholesale  gas  supply  is  below  EU  average  and  was  reduced 
significantly in comparison with 2011 (the drop in the Luxembourg's gas market concentration index 
in 2011-2015 was -37.5 %, whereas for the EU, it was -1.5 %). In 2015, Luxembourg was one of only 
five  Member  States  that  had  a  concentration  index  below  ACER's  gas  target  model  threshold 
indicating a well-functioning market. 

(source: ACER) 

3.2. Retail electricity and gas markets 

3.2.1.  Electricity 

In 2015, according to the national regulatory authority, the leading supplier totalled almost 75 % of 
market  shares  on  the  retail  market  for  household  customers,  as  well  as  58 %  on  the  market  for 
business customers. 

5   The  interconnectivity  level  is  calculated  as  a  ratio  between  import  interconnection  and  net  generation 
capacities  of  the  country  (i.e.  the  2017  value  is  the  ratio  between  simultaneous  import  interconnection 
capacity [GW] and net generating capacity [GW] in the country at 11 January 2017, 19:00 pm as resulted 
from ENTSO-E Winter Outlook 2016/2017) 

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                              Energy Union –Luxembourg 

In 2016, households' electricity prices in Luxembourg were below the EU average. Between 2013 and 
2016, average band retail electricity prices for households increased by 3.2 %. The energy component 
of  electricity  prices  decreased  between  2013  and  2015,  but  to  a  lesser  extent  than  the  wholesale 
prices.6  Retail  prices  in  Luxembourg  are  non-regulated.  Annual  switching  rates  by  household 
customers in electricity retail markets are very low. 

The share of taxes and levies in household electricity prices is below the EU average, but it increased 
substantially  between  2013  and  2016.  The  national  regulatory  authority  reported  an  increase  in 
levies for the financing of renewable energy sources and cogeneration (mécanisme de compensation) 
and an increase in VAT.7 

According  to  an  analysis  of  electricity  supplies  in  European  capitals,  the  network  charges  in 
Luxembourg City constitute 39 % share of the total offer price for electricity (one of the highest in 
Europe).  Thanks  to  a  lower  share  of  the  energy  component  in  the  retail  price,  increased  network 
charges were partially off-set.8 

Following  a  positive  cost-benefit  analysis,  Luxembourg  opted  for  a  large-scale  roll-out  of  smart 
electricity metering by the end of 2019. The expected diffusion rate is set at 95 %. The roll-out is to 
be financed through network tariffs.9 

(source: ACER) 

      (source: Eurostat) 

(source: Eurostat) 

3.2.2.  Gas 

https://assets.ilr.lu/energie/Documents/ILRLU-1685561960-288.pdf, p. 9. 

6   ACER Market Monitoring Report of November 2016, p. 70, Figure 44. 
7  
8   ACER Market Monitoring Report of November 2016, p.32. 
9  

Commission  Staff  Working  Document  of  17.6.2014,  "Cost-benefit  analyses  &  state  of  play  of  smart  metering  deployment  in  the  EU-27", 
SWD(2014) 189 final. 

7 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union –Luxembourg 

The  average  band  household  gas  prices  in  Luxembourg  are  below  the  EU  average,  and  they  have 
decreased by 26.1 % between 2016 and 2013. As in electricity markets, the annual switching rates in 
gas retail markets are very low. While the share of taxes and levies in household gas prices increased 
between 2013 and 2016, the share remains considerably below EU average. 

The  energy  component  of  the  retail  gas  price  decreased  between  2013  and  2015  to  the  greater 
extent  than  wholesale  gas  price.10  Gas  retail  prices  are  non-regulated.  As  mentioned  above, 
Luxembourg has opted for a large-scale roll-out of smart meters; this also covers smart gas meters. 
The expected diffusion rate is set at 90 % by the end of 2020. As for electricity, the roll-out will be 
financed through network tariffs. 

(source: ACER) 

       (source: Eurostat) 

(source: Eurostat) 

3.2.3.  Market performance indicators 

According to  the periodical survey  of  the Commission,  consumers  in Luxembourg are  slightly  more 
satisfied  than  the  EU  average  with  the  services  received  on  energy  retail  markets.  With  regard  to 
retail  services  in  both  electricity  and  gas,  consumer  satisfaction  has  increased  between  2010  and 
2015. For both electricity and gas, Luxembourg's consumer satisfaction appears among the highest 
across the EU. 

10   ACER Market Monitoring Report of November 2016, p. 74, Figure 46. 

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                              Energy Union –Luxembourg 

(source: DG JUST survey) 

3.3. Energy affordability  

Energy  affordability  is  understood  as  consumers'  ability  to  pay  for  their  energy  needs  without  this 
negatively impacting their comfort and livelihood. Affordability can be measured by looking at how 
much people in the lowest income bracket have to pay for their energy needs (or, in other words, by 
calculating  the  share  of  energy  expenditure  in  total  household  expenditure  for  the  quintile  of 
population with the lowest income). In Luxembourg, in 2014, the most modest households spent on 
average 5.6 % of their total expenses on their energy needs. For the EU-28, that share stood at 8.6 %. 
Another indicator for energy affordability is to calculate the share of the population that is unable to 
keep their homes adequately warm. In Luxembourg, 3.3 % of the people that are already below the 
at-risk-of-poverty threshold are also unable to keep their homes adequately heated. The EU's share is 
much  higher  (22.7 %).  While  some  degree  of  energy  poverty  seems  to  persist,  the  situation  in 
Luxembourg is less problematic than in other Member States. 

 (source: ad-hoc data collection of DG ENER based on HBS with the support of Eurostat and national statistics) 

9 

 
 
 
 
 
 
  
 
 
 
                              Energy Union –Luxembourg 

4.  Energy efficiency and moderation of demand 

Between  2005  and  2015,  Luxembourg  reduced  its  primary  energy  consumption  by  13.1 %  to  4.15 
Mtoe. Over the same period, final energy consumption fell by 10.9 % to 3.99 Mtoe. At the same time, 
GDP increased by a total of 31.7 % from 2005 to 2015, showing that economic growth has decoupled 
from energy consumption. 

Luxembourg has set itself national indicative targets of reaching a primary energy consumption of 4.5 
and  a  final  energy  consumption  of  4.2  Mtoe  in  2020.  In  other  words,  Luxembourg  is  on  track  to 
achieve its 2020 targets. However, in the years up to 2020, Luxembourg is also expected to step up 
the  national  energy  efficiency  actions  and  programs  which  are  necessary  to  meet  the  cumulative 
saving requirements stemming from Article 7 of the Energy Efficiency Directive. 

(source: Eurostat) 

Between  2005  and  2015,  the  primary  energy  intensity  of  the  economy  (expressed  by  the  ratio  of 
energy  consumption  over  GDP)  has  decreased  annually  by  -4.0 %.  The  magnitude  of  the  change  is 
bigger than the EU average of -2.0 % annual change. In 2015, Luxembourg's primary energy intensity 
stood at 88.4 tons of energy (toe) per million euros of GDP. This figure is also below the EU average 
of 113.3 toe per million euros of GDP. This could reflect the strong focus of Luxembourg's economy 
on services, notably in the financial sector. 

The  profile  of  Luxembourg's  final  energy  consumption  differs  from  the  EU-28  average,  mostly 
because of the larger share of the transport sector: the share of transport (60.7 %) is almost double 
the EU average (33.1 %), which is largely due to a large number of commuters and transit traffic. 

10 

 
 
 
 
 
 
 
                              Energy Union –Luxembourg 

(source: Eurostat) 

A variety of energy efficiency policy measures are in place in order to reach the efficiency target. The 
following are identified as the most important measures: 

−  High  energy  efficiency  standards  in  all  newly  constructed  buildings:  this  measure  will  be 
implemented in approx. 8000 new constructed residential units  per year. It corresponds to 
more than 10 % of the total energy savings planned for 2020. 

−  "Climate  pact" 

initiative  (Klimapakt):  municipalities  are  obliged  to 

introduce  energy 
management system in order to receive financial and technical support from the state. 106 
out of 106 Luxembourg's municipalities participate. 

−  Energy  efficiency  obligation  scheme:  all  electricity  and  gas  suppliers  of  the  households, 

service and industrial sectors are obliged to realise energy savings.  

− 

Increase of fuel and CO2 taxes for motor vehicles. 

For  the  industrial  sector,  the  most  important  measure,  implemented  since  1996,  is  the  voluntary 
agreement between the Government and the Fedil-Business federation Luxembourg with the aim of 
industrial  sector.  Mandatory  energy  audits  and  energy 
improving  energy  efficiency 
management systems are implemented. 

in  the 

Between  2005  and  2015,  the  final  energy  intensity  in  industry  has  decreased  on  average  by  1.0 % 
each year. It remains higher than the EU average. Over the same period, the final energy intensity in 
the services sector has fallen by an average of 2.0 % per annum and is well below the EU average. 
The  final  energy  consumption  per  square  meter  in  the  residential  sector,  albeit  still  slightly  higher 
than the EU average, was significantly reduced between 2005 and 2015 (by an average of 3.9 % per 
year). 

11 

 
 
 
 
 
 
 
 
 
                              Energy Union –Luxembourg 

(source: Eurostat)  

     (source: Eurostat) 

  (source: Odyssee database) 

Between  2005  and  2015,  the  final  energy  consumption  in  transport  in  Luxembourg  recorded  an 
average annual reduction of 1.3 %, while GDP increased annually by 2.9 %. This occurred in a context 
of steady increases in passengers transport activity (+19.9 %) and freight transport activity (+ 18.1 %) 
over  a  decade  (2005–2015).  It  is  worth  mentioning  that  Luxembourg  is  a  transit  country  for  road 
transport; this may influence transport activity. 

The share of collective  passengers land  transport into total passengers' transport increased slightly 
between  2005  and  2015;  it  is  now  very  close  to  EU  average.  The  efforts  in  this  respect  are  best 
exemplified by the works on a new tramway in the city of Luxembourg. 

(source: Eurostat)  

        (source: Eurostat and DG MOVE pocketbook) 

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                              Energy Union –Luxembourg 

(source: Eurostat)  

With the launch of the flagship Sustainable Mobility Strategy of 2012 (Mobilité durable, "MoDu"), the 
Government  of  Luxembourg  set  the  objective  to  reduce  the  share  of  individual  motorised  traffic 
(from 72.5 % in 2009 to 56 % in 2020) and to increase the share of collective modes of transport on 
one  hand  (from  14.5 %  in  2009  to  19 %  in  2020)  and  of  active  modes  (walking  and  cycling)  on  the 
other (from 13 % in 2009 to 25 % in 2020). 

Luxembourg is facing a large challenge from the road traffic that regularly congests the main traffic 
arteries in and around the capital city. Every day, the country with its 576,000 inhabitants welcomes 
(43,000 
approximately  176,000  commuters 
commuters),  and  France  (90,000  commuters).  Jobs  continue  to  be  predominantly  situated  in  the 
capital  (163,000  jobs)  which  only  has  45,000  working  residents.  Economic  growth  and  the 
concentration  of  jobs  in  the  capital  have  resulted  in  increased  traffic  congestion  and  in  longer 
commutes for residents and foreign commuters alike. As a result, traffic jams often extend across the 
borders of the Grand Duchy into neighbouring countries.  

(43,000  commuters),  Belgium 

from  Germany 

In  order  to  remedy  this  situation,  Luxembourg  is  investing  heavily  in  a  more  multimodal  and 
sustainable transport network. Throughout the country, about twenty multimodal hubs are currently 
being built to enable commuters to easily switch between different modes of transportation. Nine of 
these multimodal hubs are located along the 16 kilometre track of the future tramline that will cross 
the  entire  urban  agglomeration  of  the  capital  and  thereby  serve  as  the  backbone  of  the  public 
transportation network. 

In addition, new railway stations are being built on the outskirts of the city centre and regional bus 
lines  are  being  reorganised  to  directly  connect  to  the  tram.  In  order  to  facilitate  the  transfer  from 
cars  to  public  transport,  the  capacity  of  park  &  ride  parking  lots  is  being  doubled  throughout  the 
country (construction of an additional 13,100 spaces). A part of these will be equipped with charging 
stations for electric vehicles to promote low and zero-emission cars. Concerning active mobility, new 
cycle lanes, parking racks and bike sharing stations will further enhance multimodality. 

The majority of these projects are being implemented at the moment; in particular the tram with its 
nine multimodal hubs. The first section of the track will be completed by the end of 2017. Concerning 

13 

 
 
 
 
 
 
 
 
 
 
                              Energy Union –Luxembourg 

private  car  ownership,  Luxembourg  carried  out  a  tax  reform  which  entered  into  force  in  2017  and 
applies, inter alia, to energy products in transportation. 

14 

 
 
 
 
 
 
 
 
                              Energy Union –Luxembourg 

5.  Decarbonisation of the economy 

5.1. GHG emissions 

Luxembourg's greenhouse gas (GHG) emissions declined by 13 % between 1990 and 2016, which is 
significantly less than the reduction achieved at the level of the 28 EU Member States (-22.6 %).  

Under the Effort Sharing Decision11 (ESD), Luxembourg's target is to reduce by 20% its emissions by 
2020 (compared to 2005). Between 2005 and 2016, Luxembourg's GHG emissions declined by 16 %, 
which is a bigger reduction than its 12 % interim reduction target for 2016. Luxembourg will comply 
with its emission reduction obligations as it will bank a surplus of AEAs over the period 2013-2020. 
However, according to the latest national projections, Luxembourg's existing domestic measures will 
not  be  sufficient  to  meet  its  ESD  targets  in  the  year  2020.  Overall,  GHG  emission  reductions  are 
projected to be limited to 17.4% against the country's binding target of 20% (i.e. a gap of 2.6 pps). In 
contrast, the 28 Member States will, taken together, is expected to over-achieve their overall GHG 
emission reduction target in 2020 by 6.8 pps.  

(source: EC and EEA)   

Luxembourg continues to decouple its economic growth from its GHG emissions. During the 1990–
2016 period, Luxembourg's GHG  emissions intensity of the economy, defined as the ratio between 
emissions and GDP, decreased by 66.1 %. This is a faster pace of reduction than the rate observed at 
the EU level over the same period (-49.5 %). 

In 2015, more than half (55.4 %) of Luxembourg's GHG emissions came from the transport sector, of 
which 70 % are linked to fuel exports. This is a much higher proportion than the EU's average (21 %). 

11  

Decision No 406/2009/EC of the European Parliament and of the Council of 23 April 2009 on the effort of Member States to reduce their greenhouse gas emissions 
to meet the Community’s greenhouse gas emission reduction commitments up to 2020. 

15 

 
 
 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union –Luxembourg 

The main reasons for this phenomenon are Luxembourg's geographical situation as a transit country 
and, more importantly, the taxation of transport fuels at tax rates well below those of neighbouring 
Member States. 

(source: EC and EEA)   

Preliminary accounts under the Kyoto Protocol for Luxembourg show overall removals of 0.3 Mt 
CO2eq. as an annual average in the period 2013-2015. For comparison, the annual average of the EU-
28 accounted for removals of 119.0 Mt CO2eq. It should be noted that in this preliminary simulated 
accounting exercise, removals from Forest Management did by far not exceed the accounting cap.  

Removals by Afforestation are notably higher than emissions by Deforestation. The removals by 
Forest Management were similarly high than Afforestation, but their relative importance decreased 
notably in 2015. Overall, there is a decreasing trend in removals, due to previously noted declining 
removals by Forest Management in 2015. Emissions by Deforestation and removals by Afforestation 
show no change over the course of the three-year period.  

Note: Forest Management credits are capped and presented as yearly averages when the total Forest 
Management credits of the considered period exceed the simulated cap over the same period. 

16 

 
 
 
 
 
 
 
 
 
 
 
                              Energy Union –Luxembourg 

(source: EC and EEA) 

CO2 emissions in transport and alternative fuelled vehicles 

In Luxembourg,  the  CO2  emissions  from road  transport  were,  in  2015,  123 %  higher  than  the 1990 
levels, but they had decreased from 2005 onwards by about 21 %. 

Between 2005 and 2016, the average CO2 emissions of new cars in Luxembourg also fell by about a 
quarter;  a  similar  reduction  occurred  at  EU  level.  In  2016,  it  reached  an  average  level  of  CO2 
emissions of 126.1 g CO2 per kilometre, which is slightly above the EU average (118.1 g CO2 emissions 
per kilometre). 

Since 1 January 2017, zero emission vehicles (battery electric and fuel cell electric vehicles) as well as 
bikes and pedelec25 bikes benefit from a tax allowance of 5,000 EUR and 300 EUR, respectively. The 
use of less polluting vehicles is also encouraged with a re-evaluation system that lowers the costs of 
less  polluting  cars  for  employers,  incentivising  employers  to  opt  for  those  vehicles  as  a  benefit  in 
kind.  Although  the  exact  impact  of  this  measure  on  greenhouse  gas  emissions  is  not  known,  it  is 
meant to curb greenhouse gas emissions from road transportation. 

(source: European Environment Agency) 

The share of alternative fuel cars in total sales fell sharply between 2013 and 2015 and now is at a 
very low level (0.19 %). Over the three years between 2014 and 2016, the number of charging points 
in Luxembourg has been almost stable, reaching the amount of 212 points in 2016. 

17 

 
 
 
 
 
 
 
 
 
 
 
  
                              Energy Union –Luxembourg 

(European Environment Agency)    

       (European Alternative Fuels Observatory) 

National Policy Frameworks under Directive 2014/94/EU on alternative fuels infrastructure have to 
establish targets, objective and measures for the development of the market of alternative fuels in 
the transport sector and the deployment of the relevant infrastructure. Luxembourg has submitted 
its National Policy Framework as requested under article 3 of the Directive 2014/94/EU. 

A  detailed assessment of  Luxembourg's  National  Policy  Framework in  terms of  its  compliance  with 
the requirements of Directive 2014/94/EU, its contribution to achievement of long-term energy and 
climate objectives of the Union and coherence of its targets and objectives in terms of cross-border 
continuity  has  been  published  as  part  of  the  Communication  on  Alternative  Fuels  Action  Plans 
(COM(2017)652) and  the related staff working document SWD(2017)365. 

5.2. Adaptation to climate change 

Luxembourg's  Council  of  Ministers  adopted  a  National  Adaptation  Strategy  on  Climate  Change  in 
2011,  prioritising  four  sectors:  biodiversity,  water,  agriculture  and  forestry.  Currently  a  new,  more 
comprehensive adaptation strategy is being elaborated. It will list concrete measures mostly in those 
areas  that  are  the  most  impacted  by  higher  and  erratic  rainfalls  as  well  as  by  river  flow  regimes: 
drinking water, agriculture, viticulture, biodiversity, energy, buildings and infrastructure, navigation, 
health,  tourism  and  other  domains.  No  National  Adaptation  Plan  has  been  adopted,  nor  has  a 
Monitoring and Reporting Framework been developed. 

5.3. Taxes on energy and transport and fossil fuel subsidies 

The overall tax burden on energy and transport in Luxembourg amounts to 2.0 % of GDP, nearly 0.4 
percentage  points  (p.p.)  lower  than  the  EU  average.  It  is  particularly  the  tax  burden  on  transport 

18 

 
 
 
 
 
 
  
 
 
 
 
                              Energy Union –Luxembourg 

vehicles and on heat and electricity that is low. Revenues from fuel taxation in Luxembourg are still 
much  higher  than  the  EU-average,  despite  a  decrease  by  1.0  p.p.  since  2005.  The  high  level  is 
primarily  driven  by  "border  shopping"  of  fuels  as  excise  duties  on  petrol  and  diesel  are  lower  in 
Luxembourg than in the neighbouring countries. In terms of vehicle taxation Luxembourg applies a 
circulation  tax  based  on  CO2  emissions,  but  there  is  no  CO2  component  in  the  tax  framework  for 
energy products. 

A key policy to increase efficiency in the transport sector is increasing fuel and CO2-taxes for motor 
vehicles. The increase of the fuel taxes is expected to result in energy savings in Luxembourg of 86 
GWh in 2020. The CO2 tax increase for motor vehicles is in force since 2007 and aims to save 66 GWh 
of final energy by 2020. 

(source: Eurostat) 

Since 2007, the Luxembourg has set preferential VAT rates and excise duties on mineral fuels and for 
certain sectors and users, leading to a sharp increase in fossil fuel subsidies. However, also in 2007, 
the excise rate on gasoline increased while those for diesel were adjusted in two stages: a first hike in 
2007 and subsequently in 2008. 

19 

0123452007201420072014LUEU28[% GDP]Energy & Transport related taxes as % GDPHeat & ElectricityTransport VehiclesTransport Fuel2.591.982.282.37Total transport and electricity taxes [%GDP]: 
 
 
 
 
 
 
 
 
                              Energy Union –Luxembourg 

(source: OECD Inventory of Support Measures for Fossil Fuels 2015) 

5.4. Renewable energy  

On renewable energy in general, Luxembourg had so far been on track with renewable energy shares 
set above the indicative trajectory defined in the Renewable Energy Directive. In 2015, wind power 
and solar PV capacity grew by 6 MW each, and there was some growth in heat pumps, solar thermal 
and  biofuels.  However,  in  2015,  for  the  first  time,  Luxembourg’s  share  fell  below  the  indicative 
trajectory  (5.4 %),  albeit  by  a  small  margin  (the  actual  renewable  share  being  5 %).  The  share  of 
renewables in electricity production continued to grow (from 5.9 % in 2014 to 6.2 % in 2015), but the 
share of renewables in heating and cooling declined (from 7.2 % in 2014 to 6.9 % in 2015).  

Luxembourg has different measures in place to promote the use of renewable energy. In 2016, the 
support  scheme  for  renewable  electricity  production  was  reformed,  with  a  view  to  integrate 
renewable electricity better in the market. The scheme consists of premium payments for operators 
of  wind,  solar,  biogas,  hydropower  and  biomass  installations,  to  spur  further  investment  in 
renewable  electricity  generation.  The  total  budget  of  the  measure  will  be  approximately  EUR  150 
million, allocated between 2016 and 2020.  

Luxembourg  is  also  one  of  the  few  Member  States  to  already  have  a  so-called  "one-stop-shop", 
online  application  facilities,  and  a  maximum  time  limit  for  procedures  for  renewable  developers  in 
order  to  facilitate  the  installation  of  renewable  energy  plants.  Also,  in  April  2016,  the  government 
announced three new projects in public-private partnership (wind, biomass, and cogeneration partly 
converted to wood-pellet use), totalling EUR 131 million of investment and covering nearly a quarter 
of the country's renewable energy needs. In 2016, a set of measures was implemented in order to 
increase  the  share  of  renewable  energies.  Modifications  in  respect  to  the  feed-in  and  the  market 
premium scheme entered into force in order to promote renewable electricity production as well as 
the injection of biogas in the natural gas grid. Moreover, a reform of the subsidy scheme for private 

20 

 
 
 
 
 
 
 
 
                              Energy Union –Luxembourg 

households continues to provide financial incentives for various renewable energy technologies (such 
as PV, thermal solar, heat pumps). 

But the indicative trajectory will become steeper (the 2020 target is more than double the indicative 
trajectory  value  for  2015).  The  government  is  considering  statistical  transfers  of  renewable  energy 
from other Member States that are expected to achieve their target, but no final decision has been 
made yet. 

 (source: Eurostat-SHARES) 

(source: Eurostat-SHARES) 

It is estimated that in 2015, Luxembourg avoided 4.2 % of fossil fuel in gross inland consumption and 
about  3.6 %  of  GHG  emissions  at  national  level  by  its  renewable  energy  systems.12  This  is 
considerably lower than the EU average, which for fossil fuel and GHG emission avoidance stood at 
10.1 % and 9.1 % respectively. 

12   Avoided  GHG  emissions  mentioned  here  have  a  theoretical  character  as  these  contributions  do  not 
necessarily represent 'net GHG savings per se'. Nor are they based on a life-cycle assessment or full carbon 
accounting. 

21 

 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union –Luxembourg 

 (source: EEA) 

5.5. Contribution of the Energy Union to better air quality 

Air quality in Luxembourg continues to give cause for concern. For the year 2013, the EEA estimated 
that about 280 premature deaths were attributable to fine particulate matter (PM2.5) concentrations 
and 80 to nitrogen dioxide (NO2) concentrations13.  

For  NO2,  Luxembourg  reported  exceedances  of  the  binding  EU  air  quality  standard14.  For  2015, 
Luxembourg  reported  exceedances  of  the  limit  value  for  NO2  in  1  out  of  the  3  air  quality  zones  in 
Luxembourg as shown in the figure below15. 

13   European  Environment  Agency,  2016,  Air  Quality  in  Europe  –  2016  Report,  table  10.2.  The  report  also 

includes details as regards the underpinning methodology for calculating premature deaths.    

14   Directive  2008/50/EC  of  the  European  Parliament  and  of  the  Council  of  21  May  2008  on  ambient  air 

quality and cleaner air for Europe, OJ L 152, 11.6.2008, p.1-44 

15   Compliance data as reported by the Member States as part of their official annual air quality report for 
the  calender  year  2015  (available  on  the  European  Environment  Agency's  (EEA)  Eionet/Central  Data 
Repository), http://cdr.eionet.europa.eu/lu/eu/aqd  

22 

 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union –Luxembourg 

(source: EEA) 

The health-related external costs from air pollution in Luxembourg have been estimated to be more 
than  EUR  859  million/year  (income  adjusted,  2010),  which  includes  the  intrinsic  value  of  living  a 
healthy life without premature death as well as the direct costs to the economy such as healthcare 
costs and lost working days due to sickness caused by air pollution16. 

The  Energy  Union  can  substantially  contribute  to  addressing  these  air  quality  problems  through 
measures reducing emissions of both GHG and air pollutants such as PM and nitrogen oxides (NOx) 
from major contributing sectors such as (road) transport, energy production, industry and residential 
heating (e.g. stoves and boilers) as shown in the figure below17. 

(Source: EEA. This table reflects only sources of primary PM2,5 emissions.) 

16   See also the EU Environmental Implementation Review Country Report for Luxembourg, SWD(2017)49 

final of 3.2.2017 

17   National  emission  data  as  reported  by  the  Member  States  to  the  EEA  (available  on  the  EEA's 

Eionet/Central Data Repository), http://cdr.eionet.europa.eu/lu/eu/nec_revised 

23 

12.6%32.6%0.3%8.7%0.7%0.5%0.0%44.6%0.0%AgricultureCommercial, institutional and householdsEnergy production and distributionEnergy use in industryIndustrial processes and product useNon-road transportOtherRoad transportWastePM2.5 emissions by sectors -2015*LU5.2%6.7%5.6%19.1%0.0%2.3%0.0%61.1%0.0%NOx emisisons by sectors -2015* *NECD data submitted by MS to EEA at 28th May 2015 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union –Luxembourg 

6.  Research, innovation and competitiveness  

6.1. Research and innovation policy 

The  Luxembourg  National  Research  Fund  (FNR)  is  the  funding  agency  for  public  research  in 
Luxembourg. Luxinnovation (the national agency for innovation and research) has a supporting role 
by providing advice on R&I to all actors in the sector, including the government. Luxinnovation also 
drives  the  Luxembourg  Cluster  Initiative,  which  brings  together  several  clusters  and  innovation 
networks. One of the networks established under this initiative is the EcoInnovation Cluster, which 
supports green technologies and renewable energy. 

Energy R&I has traditionally been a low priority in Luxembourg, with the exception of participation in 
specific  programmes  such  as  the  European  fusion  research  programme.   Among  renewable  energy 
sources,  wind  has  received  the  largest  share  of  support,  with  some  funding  also  going  to  solar 
thermal and bioenergy. 

Luxembourg  is  not  an  active  contributor  to  the  ongoing  work  of  the  Strategic  Energy  Technology 
(SET) Plan. It does not participate in any of the fourteen temporary working groups, which have been 
set up to implement the integrated SET Plan. 

Regarding  the  Horizon  2020  programme  (for  which  Luxinnovation  is  the  National  Contact  Point),  
Luxembourg  has  received  so  far  0.1 %  of  the  EU  contribution  devoted  to  the  'secure,  clean  and 
efficient  energy'  part  of  the  programme.  As  of  September  2017,  17  participations  from  national 
organisations  have  been  awarded  EUR  2.6  million  in  Horizon  2020  energy  projects.  This  includes  a 
grant  of  almost  EUR  0.5  million  to  the  University  of  Luxembourg  for  its  participation  in  project 
Sharc25 (thin-film solar cells). 

6.2. Investments and patents in the Energy Union R&I priorities  

In  2012,  public  (national)  investments  in  the  Energy  Union  R&I  priorities  reached  EUR  71  million, 
almost three times the amount reported in 2011. The largest share of these investments (71%) was 
attracted  by  the  Sustainable  Transport  R&I  priority  of  the  Energy  Union,  followed  by  the  Smart 
System  (20%).  For  the  same  year,  2012,  public  investment  per  GDP  was  over  five  times  the  EU 
average.  

Private investment in the Energy Union R&I priorities in 2013 was estimated at EUR 46 million (0.3% 
of the private R&I investment in Energy Union R&I priorities in the EU). The focus was on Sustainable 
Transport, which received 42% of these investments, followed by the Efficient Systems priority with a 
share of 36%. 

24 

 
 
 
 
 
 
  
 
                              Energy Union –Luxembourg 

In 2013, the most recent year for which complete patent18 statistics are available, 13 companies and 
research organisations based in Luxembourg filed 18 patents in low-carbon energy technologies 
(0.3% of the EU total). The focus was on Sustainable Transport (42%), followed by Efficient Systems 
(36%) and Renewables (14%). 

In  2013,  private  R&I  investments  in  Energy  Union  R&I  priorities  were  lower  than  the  EU  average 
when  normalised  by  GDP.  On  the  contrary,  the  number  of  patents  in  Energy  Union  R&I  priorities 
normalised  by  population  was  much  higher  than  the  EU  average.  In  the  period  2007–2013,  both 
private R&I investments and the number of patents in Energy Union R&I priorities have increased on 
average  by  16 %  and  27 %  per year,  displaying  higher rates  of  increase  than  same indicators  at  EU 
level (6% and 15% respectively). 

Note: Public investment data are only available for the years 2011 and 2012.  

18   In  the  context  of  this  document,  the  term  'patent'  refers  to  patent  families,  rather  than  applications,  as  a 
measure  of  innovative  activity.  Patent  families  include  all documents  relevant to  a  distinct  invention (e.g. 
applications to multiple authorities), thus preventing multiple counting. A fraction of the family is allocated 
to each applicant and relevant technology. 

25 

 
 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union –Luxembourg 

(Data sources: Public investment as available in the International Energy Agency RD&D Statistics database19 for 
codes  relevant  to  Energy  Union  RIC  priorities.  Patent  data  based  on  the  European  Patent  Office  PATSTAT 
database20. Private investment data estimated by JRC SETIS. Detailed methodology available from the JRC21.)  

6.3. Competitiveness 

In 2014, the real unit energy costs (RUEC)22 in Luxembourg (19.4 % of value added) were above the 
EU  average  (15.3 %),  significantly  higher  than  those  in  the  US  (7.5 %),  but  below  those  in  Japan 
(23.8 %),  China  (44.6 %)  and  Russia  (37.7 %).  In  2011,  Luxembourg’s  RUEC  had  been  much  higher 
(59.0 %), topping all the countries mentioned. 

The average (IEA) electricity prices paid by industrial customers in Luxembourg are below the EU and 
OECD averages. These prices compare favourably to Switzerland or Japan and are on par with prices 
in  the  United  States,  but  higher  than  average  prices  in  Norway.  There  is  a  significant  gap  between 
average  electricity  prices  and  prices  for  median  consumption  in  Luxembourg.  The  latter  are  still 
below EU level, but above the price for median consumption in Norway or Turkey. 

Conversely,  average  (IEA)  gas  prices  for  industrial  consumers  are  above  OECD  averages.  They  are 
lower  than  prices  in  Korea  and  in  Switzerland,  but  higher  than  in  the  United  States,  New  Zealand, 
Canada and  Turkey. Gas  prices for median consumption are slightly higher than the average prices 
and top median prices for the EU. 

(source: ECFIN) 

                   (source: Eurostat and IEA) 

Regarding the competitiveness in wind and solar energy, Luxembourg is performing quite well 
in  the  solar  sector  notably  in  the  manufacturing  of  modules  and  cells,  having  improved 

19   http://www.iea.org/statistics/RDDonlinedataservice/  
20   https://www.epo.org/searching-for-patents/business/patstat.html#tab1  
21   https://setis.ec.europa.eu/related-jrc-activities/jrc-setis-reports/monitoring-ri-low-carbon-energy-

technologies  

22   This indicator measures the amount of money spent on energy sources needed to obtain one unit of value 

added. 

26 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union –Luxembourg 

considerably  since  2005.  As  indicated  by  the  revealed  comparative  advantage  indicator23  below  1, 
the  Luxembourg  economy  is  not  specialised  in  wind  energy.  The  relative  trade  balance24  indicates 
that  Luxembourg  is  a  net  importer  of  wind  components  and,  to  a  lesser  degree,  of  solar  energy, 
although the net imports of the latter have decreased considerably since 2005. 

 (source: UN comtrade) 

7.  Regional and local cooperation 

Luxembourg  is  a  member  of  the  Pentalateral  Energy  Forum.  It  was  created  in  2005  by  Energy 
Ministers from Benelux, Germany and France, but Austria and Switzerland later also joined. It is an 
inter-governmental initiative, assisted by an independent secretariat. The countries' energy ministers 
renewed  the  mandate  of  the  Pentalateral  Energy  Forum  in  2013  with  a  political  declaration.  The 
focus of the forum is on electricity market integration and security of supply.  

Also,  together  with  Belgium,  France,  Germany  and  the  Netherlands,  Luxembourg  is  part  of  the 
Central Western European (CWE) day-ahead market coupling. Since 20 May 2015, it uses the flow-
based  methodology.  The  flow-based  methodology  project  has  been  carried  out  jointly  by  CWE 
transmission  system  operators,  including  Amprion,  Elia,  RTE,  Tennet  the  Netherlands,  Creos  (the 

23   The RCA index for product "i" is defined as follows: RCAi =

Xj,i
∑ Xj,i
i
Xw,i
∑ Xw,i
i

 where X is the value of exports, and j is 

the  country  and  w  is  the  reference  group,  the  World  economy.  2005  refers  in  the  text  to  the  indicator 
average  over  the  2000-2009  period,  while  2015  represents  the  average  over  the  2010-2016  period.  The 
same applies for the RTB indicator - see below. 

24   The RTB indicator for product "i" is defined as follows: RTBi =

Xi−Mi
Xi+Mi

 where Xi is the value of product's "i" 

exports and Mi imports. 

27 

0123456solarwindsolarwindLUEU28[-]Revealed Comparative Advantage -RCA200520150.81-0.03-0.070.22absolute change 2005 -2015:-1.0-0.50.00.51.0solarwindsolarwindLUEU28[-]Relative Trade Balance -RTB200520150.240.15-0.080.06absolute change 2005 -2015: 
 
 
 
 
 
 
 
 
                                                            
                              Energy Union –Luxembourg 

Luxembourg  TSO)  and  Transnet  BW,  and  Power  Exchanges  APX  and  EPEX  SPOT.  The  flow-based 
method was approved by national energy regulators on 23 April 2015. The flow-based methodology 
was  successfully  run  for  the  first  time  in  the  CWE  Day-Ahead  market  coupling  process  on  20  May 
2015 (for delivery day 21 May). This new methodology should lead to further price convergence in 
the region. 

Luxembourg is a member of the High-Level Group on North Seas Energy Cooperation. In June 2016, 
Luxembourg  signed  the  Political  Declaration  on  energy  cooperation  between  the  North  seas 
countries. This Declaration has established a High-Level Group to give the necessary political impetus 
to a project which is fundamental to facilitate the cost-effective deployment of offshore renewable 
energy  and  to  promote  further  interconnection  and  further  integration  of  wholesale  electricity 
markets around the North Seas. Through a coordinated approach will be achieved market integration 
and the integration of substantial amounts of indigenous low carbon generation, at lower cost and 
with  an  optimal  use  of  maritime  space  (avoidance  of  conflicts  with  other  North  Seas  users).  It  will 
boost  economic  growth  and  create  a  significant  amount  of  highly  skilled  jobs  in  the  region. 
Luxembourg is also a member of the North Seas Off-shore Grid Regional Group. 

European  Territorial  Cooperation  – 
'Interreg'  –  under  EU  cohesion  policy  provides  further 
opportunities for cross-border, transnational and interregional cooperation, including in the Energy 
Union areas. 

Cities and urban areas have a key role in the energy and climate challenge. The Urban Agenda for the 
EU,  established  by  the  Pact  of  Amsterdam  in  May  2016,  better  involves  cities  in  the  design  and 
implementation of policies, including those related to the Energy Union. It is implemented through 
Partnerships, in which the Commission, Member States, cities and stakeholders work together on a 
number  of  important  areas,  including  on  Energy  Transition,  Urban  Mobility,  Air  Quality,  Climate 
Adaptation and Housing. Luxembourg is participating in the partnership on Housing, as member. 

By  2016,  under  the  Covenant  of  Mayors,  one  municipality  from  Luxembourg  had  submitted  a 
sustainable energy action plan (SEAP) expected to reduce average GHG emissions per capita by 30 % 
(as compared to 1990 baseline). 

(source: JRC 2016. Notes: SEAP=sustainable energy action plan, GHG=greenhouse gas emissions) 

28 

 
 
 
 
 
 
 
 
                              Energy Union –Luxembourg 

In Luxembourg, by September 2016, no cities have yet committed to conduct vulnerability and risk 
assessment  and  develop  and  implement  adaptation  plans  in  the  framework  of  the  Covenant  of 
Mayors for Climate and Energy. 

8.  Cohesion policy and EU-supported clean energy investments  

EU  cohesion  policy  makes  a  key  contribution  to  delivering  the  Energy  Union  objectives  on  the 
ground,  including  investment  possibilities  to  implement  energy  policy  objectives  in  Luxembourg 
which are complemented by national public and private co-financing, aiming at optimal leverage. It 
also  ensures  integrated  territorial  solutions  to  energy  and  climate  challenges,  supports  capacity 
building and provides technical assistance. 

Over  the  period  2014–2020,  cohesion  policy  is  investing  some  EUR  5  million  in  energy  efficiency 
improvements  in  public  and  residential  buildings,  as  well  as  in  renewable  energy  in  Luxembourg. 
Cohesion  policy  is  also  investing  significantly  in  R&I  and  in  SME  competitiveness  in  Luxembourg, 
based  on  the  national  strategy  for  smart  specialisation.  For  Luxembourg,  the  strategy  includes  a 
focus  on  eco-technologies  and  key  enabling  technologies.  At  this  stage,  at  least  EUR  360,000  is 
foreseen  for  investments  in  R&I  and  adoption  of  low-carbon  technologies  in  Luxembourg,  but  this 
might increase further in line with the evolving content of the smart specialisation strategy. A further 
estimated  EUR  4  million 
in  supporting  the  move  towards  an  energy-efficient, 
is 
decarbonised transport sector. 

invested 

(source: DG REGIO) 

These  investments  are  expected  to  contribute  to  around  60  households  with  improved  energy 
consumption  classification,  a  decrease  of  around  150,000  kWh  per  year  of  primary  energy 
consumption  of  public  buildings,  and  around  5  MW  of  additional  capacity  of  renewable  energy 
production. Overall, the EU cohesion policy investments in Luxembourg over the period 2014–2020 
are  expected  to  contribute  to  an  estimated  annual  decrease  of  GHG  emissions  of  around  15  000 
tonnes of CO2eq. 

29 

 
 
 
 
 
 
 
                              Energy Union –Luxembourg 

For example, the ZAC-eMovin project focuses on the electric car, with the aim of creating a network 
of charging stations across the country to encourage widespread use. ZAC-eMovin aims to propose 
innovative  solutions  to  work-related  commutes  by  trialling  and  studying  e-car  sharing  in  three 
industrial activity zones around Luxembourg City. A charging station and electric car will be available 
to  employees  at  a  participating  company  in  each  location.  Car-sharing  to  travel  to  meetings  and 
events is envisaged as the primary use, but car-pooling from home to work may also be organised. A 
specially  designed  electronic  registration  system  will  monitor  e-car  use  by  employees  to  better 
understand  the  potential  for  wider  implementation  at  business  locations  around  Luxembourg.  The 
total cost of the project amounts to EUR 327,356, of which EUR 81,839 from the European Regional 
Development Fund (ERDF). 

As another example, the composting biogas Mondercange plant transforms an important part of the 
waste stream in the southern part of Luxembourg into biogas and compost. With an annual intake of 
35,000  tonnes  of  organic  waste  generated  by  some  200,000  inhabitants,  the  plant  produces  some 
10,000 tonnes  of  compost,  all  of  which  is  sold  off  for  use  in  agriculture  and  gardening.  A 
sophisticated gas refinery on site allows for the plant to feed its biogas directly into the local network 
and to contribute to the energy supply of the equivalent of 1,300 households. The total cost of the 
project was EUR 23.4 million, of which EUR 4 million from the European Regional Development Fund 
(ERDF). 

Through  its  support  to  sustainable  transport  systems,  The  Connecting  Europe  Facility  (CEF)  also 
contributes  to  the  goals  of  the  Energy  Union.  Following  Luxembourg's  participation  in  the  CEF  – 
Transport 2014–2015 calls, the Luxembourgish action portfolio comprises 5 signed grant agreements, 
allocating  EUR 71.6  million  of  actual  CEF  Transport  Funding  to  beneficiaries  in  Luxembourg  (state: 
February 2017)25. The transport mode which receives the highest share of funding is rail (99.2 % of 
actual  funding).  The  CEF  programme  provides  a  significant  contribution  to  new  rail  lines  and 
implementation  of  The  European  Railway  Traffic  Management  System  (ERTMS).  Luxembourg's 
portfolio  also  includes  a  multimodal  action  with  the  objective  to  promote  the  use  of  a  new  and 
innovative  technology  for  production  and  supply  of  alternative  fuel for  transportation  partly  based 
on regenerative sources (biogas).26 

25   Note  that  European  Economic  Interest  Groups  and  International  Organisations  are  excluded  from  the 

analysis. 
26   Source: INEA 

30