Luxembourg has launched a tender for electrification
Marcin Jozwiak, Unsplash
The Luxembourg Ministry of Economy has announced the opening of a call for projects for the electrification of industrial processes in the manufacturing sector. The move is part of the national strategy to decarbonise the economy and is being implemented within the framework of the law of 3 July 2025 to support the transition to a zero-emissions economy.
The essence of the initiative is to subsidise projects that will allow manufacturing companies to replace the use of fossil fuels with electricity in technological processes. The main goal is to achieve a minimum 40% reduction in direct greenhouse gas emissions per plant.
Economy Minister Lex Delles stressed that the programme is designed to simultaneously strengthen the resilience and competitiveness of Luxembourg's industry. His statement is not just a formality, but a clear signal: the climate agenda is becoming a tool for modernisation and economic renewal.
The call for applications is open from 22 August to 31 October 2025 (until 12:00 CET). All projects will be evaluated according to a key criterion - the subsidy value per tonne of CO₂ equivalent that the project avoids. In case of identical indicators, additional criteria for ranking are provided.
Projects must meet the following conditions:
- touch an industrial facility from the sector with the NACE code C10-C33 (manufacturing industry);
- Ensure that emissions are reduced by at least 40% through electrification;
- not to increase production capacity by more than 2%;
- to be realised within 36 months of receiving the financing.
Projects aimed solely at fulfilling regulatory requirements already in place, as well as applications from businesses in financial distress, will not be accepted.
Financial support will be provided in two phases:
- 45% of the investment amount - after the equipment is put into operation;
- the remaining amount in ten annual tranches if the company confirms that it has achieved its emission reduction targets.
Participating companies are required to submit annual reports and strictly comply with the technical and environmental conditions specified in the documentation.
