Luxembourg shows re-vamped Climate Plan – with a focus on climate justice

It aims to increase the share of renewable energy in the country’s mix to around 40% until 2030

On Monday, Luxembourg’s government presented an updated draft version of its National Integrated Energy and Climate Plan – PNEC (Energie- a Klimaplang fir Lëtzebuerg). The plan outlines the country’s climate strategy for reducing emissions and transitioning to more sustainable carbon levels.

The document, however, is just a draft and needs to be approved by the European Commission. At the same time, it already expands the scope of previous targets and measures in its version from 2020. Moreover, apart from more ambitious carbon reduction goals, the ‘Klimaplang’ has 197 individual measures, with a lot of them focusing on providing for a just transition.

Updated targets

According to an official statement by the government, many of Luxembourg’s climate targets are already ambitious and compatible with EU directives, so they will not change. However, there are notable exceptions when it comes to renewable energy and energy efficiency.

The revised targets for 2030 include a 55% reduction in greenhouse gas emissions compared to 2005, to achieve a 35%-37% share of renewables in the energy mix, updated from 25% in the previous plan. Additionally, the country is aiming to improve energy efficiency by 44%, compared to the previous 40%.

Measures to ensure a just transition

The plan has 197 different measures. One highlight is the CO2 tax, which will continue to be increased annually by 5 euros per ton of CO2. It would be primarily aimed at reducing emissions from the sale of road fuels. The proceeds will be used to finance climate measures and solutions, invest in the energy transition and finance social compensation measures.

Another is the continued development of "Klimapakt 2.0", a support scheme for municipalities to strengthen their role in climate action and energy transition. According to a government statement,  municipalities are important partners in the implementation of climate objectives at the local level.

Furthermore, the climate plan proposes the creation of a national entity to support energy renovation for residential buildings with low energy performance. The main objective would be to assist owners in increasing efficiency, through insulation and other green measures, suitable for homes.