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Environment and climate

Renewable energy initiatives in Luxembourg in 2025

The awareness that we must all contribute to caring for the environment is reaching more and more people and is becoming stronger and stronger, and Luxembourg is not lagging behind. In fact, it is one of the countries leading the change by implementing cutting-edge initiatives and measures, and in this article we will take a look at some of them.

Last time updated
28.01.25

In the Climate Change Performance Index, which evaluates and compares the efforts of multiple countries and the EU in the fight against climate change, Luxembourg has a very good overall rating, ranking 13th in 2025. It receives an average rating in Renewable Energy and Energy Use, high in GHG Emissions and low in Climate Policy.

Green program and ecology in Luxembourg

Luxembourg is deeply committed to the fight against climate change and the energy transition. As part of the efforts to achieve climate neutrality by 2050, Luxembourg has developed the Integrated National Energy and Climate Plan (NECP) 2021-2030. This strategy sets ambitious targets, such as reducing greenhouse gas emissions by 55%, increasing the use of renewable energy to 25% of final consumption and improving energy efficiency by at least at least. 44%. Some of Luxembourg's initiatives in the renewable energy field within this framework are the following:

  1. Hydrogen strategy

    Promotes hydrogen as a key fuel in the energy transition, with partnerships such as the Portugal-Benelux green hydrogen corridor.Promotes hydrogen as a key fuel in the energy transition, with partnerships such as the Portugal-Benelux green hydrogen corridor.

  2. Offshore wind energy

    Within wind power initiatives, Luxembourg is collaborating on cross-border projects in the North Sea to expand offshore wind power capacity to 120 GW by 2030.within wind power initiatives, Luxembourg is collaborating on cross-border projects in the North Sea to expand offshore wind power capacity to 120 GW by 2030.

  3. Statistical transfers of green energy

    Agreement with Denmark to contribute to the development of renewable energy and meet national targets.Agreement with Denmark to contribute to the development of renewable energy and meet national targets.

  4. Renewable energy-covered bonds

    Luxembourg is a leader in sustainable finance with financial instruments for clean energy projects, pioneering this type of bond.Luxembourg is a leader in sustainable finance with financial instruments for clean energy projects, pioneering this type of bond.

Furthermore, in February 2024, Luxembourg signed the Net-Zero Industry Act agreement and committed to achieving net zero emissions in national government operations by 2050. This adds new renewable energy commitments to Luxembourg in 2025, so that within Luxembourg's government renewable energy plans and initiatives are the following to comply with the Net-Zero Industry Act:

Simplification of administrative processes

Luxembourg has committed to designate single points of contact to facilitate and coordinate permit processes related to strategic net-zero technology projects, as required by the NZIA. This includes maximum times for granting permits, reducing bureaucracy and accelerating project implementation.

Promotion of local clean technology manufacturing

In line with the NZIA's goal of manufacturing, at least 40% of clean technology needs within the EU by 2030, investments in local infrastructure such as solar energy projects in Luxembourg are being promoted.

Innovative projects and industrial decarbonization

Luxembourg participates in projects financed by the EU Innovation Fund, which supports innovative industrial initiatives. For example, projects related to energy storage, recycling and carbon capture and storage (CCUS) are being developed to reduce emissions in energy-intensive industries.

Development of renewable hydrogen

The country is investing in renewable hydrogen production capacities and infrastructure as part of its strategy to decarbonize sectors that are difficult to electrify.

Training and retraining

To meet the demand for a sustainable industry, Luxembourg is committed to training its workforce in clean technologies through educational programs and partnerships with the private sector.

Participation in cross-border renewable energy projects

Luxembourg is already participating in cross-border renewable energy projects and is committed to expanding its role in collaborative projects such as those related to offshore wind energy in the North Sea and hydrogen corridors, to contribute to the EU's goal of energy independence.
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Luxembourg has already implemented a large number of measures to contribute to the preservation of the environment, and its efforts have led it to occupy a fairly favorable position in rankings such as the climate change performance index. However, the country's efforts do not end there and it has continued its fight by signing commitments such as the Net-Zero Industry Act and beginning to implement the changes it entails.

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Frequently Asked Questions (FAQ)

How do the PNEC and the Net-Zero Industry Act differ?

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We took photos from these sources: Aniek Wessel on Unsplash

Authors: Luz
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