Luxembourg in 13th place in the climate efficiency ranking
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The Climate Change Performance Index 2025 report notes that Luxembourg, despite its dependence on energy imports, has low per capita greenhouse gas emissions. It is now in line with the Paris Agreement.
The EU has steadily reduced emissions (-20 per cent since 1990) thanks to common climate targets, but Germany and Poland are stalling progress. Globally, the situation is alarming, with 42 out of 63 countries exceeding the allowable levels, and hydrocarbon economies such as Russia and Saudi Arabia making little progress.
Luxembourg is also making steps towards a green energy transition, but falls short of EU leaders such as Denmark and Sweden, where the share of RES exceeds 50 per cent. The EU as a whole is showing moderate progress (22% RES with a target of 42.5% by 2030), but Eastern European countries face major challenges. Globally, a record 473 GW of new renewable energy capacity in 2023 will not offset continued fossil fuel subsidies.
At the same time, high energy consumption per capita puts Luxembourg at a disadvantage. Within the EU, countries with high rates of improvement, such as Estonia and Romania, stand out favourably, but overall progress is patchy. Globally, energy consumption growth (+2.2 per cent in 2023) is higher than the average of the previous decade, exacerbating climate risks.
Luxembourg is also lagging behind in implementing international commitments. The EU is developing strong initiatives, including the Green Deal and Fit for 55, but internal divisions are slowing implementation. Globally, only Denmark stands out for its high climate standards, while key players including the US, China and India are failing to honour commitments.
It is clear that despite its position in the top 15 climate-efficient states, Luxembourg still has a lot of work to do to improve its performance. Some of these improvements are already planned for the near future. For example, the country's 2025 budget mentions investments of €2.7bn for the implementation of the National Energy and Climate Plan, including support for renewable energy.
