This document sets the government's plan for the transport sector over the period 2022-2035. It notably seeks to increase the modal share of active transport modes.

<div>To benefit from the support of the Recovery and Resilience Facility set up by the EU in the aftermath of the COVID-19-induced economic crisis, Member States submit their recovery and resilience plans to the European Commission. Each plan sets out the reforms and investments to be implemented by end-2026 and Member States can receive financing up to a previously agreed allocation. Each plan should effectively address challenges identified in the European Semester, particularly the country-specific recommendations of 2019 and 2020 adopted by the Council. It should also advance the green and digital transitions and make Member States’ economies and societies more resilient. The Commission validates the plan after which it effectively enters in force and EU subsidies can start flowing towards the member state. The European Commission has given a positive assessment to Luxembourg’s recovery and resilience plan, which will be financed by €93.4 million in grants,&nbsp;including:</div><ul><li>Electromobility: deploying a support scheme to enlarge the network of charging points for electric vehicles across the country. €30.5 million</li><li>Biodiversity: establishing a 'Naturpakt' with municipalities to provide financial support to actions to protect nature and prevent biodiversity loss. €6 million</li><li>Renewables: supplying a new housing district built on a former industrial site with heat and electricity produced from renewables. €24 million </li></ul>

This document is aimed at supporting the development of the green, social and/or sustainability capital market with the issuance of safe (AAA-rated) and liquid sovereign green, social and/or sustainability bond(s). Under this Framework, the Grand Duchy of Luxembourg may issue 3 types of bonds: 1) Green Bonds where an amount equal to the net proceeds will be exclusively used to (re)finance eligible expenditures falling within the Eligible Green categories, 2) Social Bonds where an amount equal to the net proceeds will be exclusively used to (re)finance eligible expenditures falling within the Eligible Social categories,, and 3) Sustainability Bonds where an amount equal to the net proceeds will be exclusively used to (re)finance eligible expenditures falling within both Eligible Green and Social categories.

The Luxembourguese government released on May 27th a COVID-19-related stimulus plan called "Gréng Relance – E plus fir d’Klima, d’Handwierk an d’Bierger".&nbsp; This plan notably aims at incentivising energy efficiency in buildings, the use of renewable energy sources, and "soft mobility" modes.&nbsp;

The National Energy and Climate (ENCP) Plan is a ten-year integrated document <a href="https://ec.europa.eu/energy/topics/energy-strategy/national-energy-climate-plans_en">mandated by the European Union</a> to each of its member states in order for the EU to meet its overall greenhouse gases emissions targets.&nbsp; The Energy and Climate Plan addresses all five dimensions of the EU Energy Union: decarbonisation, energy efficiency, energy security, internal energy markets and research, innovation and competitiveness. The plan establishes the following central objectives:&nbsp; 1) Decarbonisation: reduction of GHG emissions, increase the share of renewable energy in the gross final energy consumption by cooperating with other EU Member States; 2) Energy efficiency: new fossil-free single-purpose and residential buildings, developing renewable heating networks, preventing traffic through massive expansion of public transport and electromobility; 3) Energy security: reduce dependence on electricity imports by expanding renewable energy, intensify regional cooperation in the field of security of electricity and gas supply; 4) Internal energy market: no further development of national gas infrastructure, combining the sectors of electricity, heat and transport by means of sector coupling; 5) Research, innovation and competitiveness:&nbsp; implementation of a nationwide energy transition 'zero carbon', promote resilient urban and spatial development in conjunction with urban/spatial planning, Luxembourg to become an attractive location for climate solutions providers and start-up, introduction of a carbon tax increase, etc.&nbsp;

This law sets Luxembourg's climate legal framework. It also amends the law of May 31, 1999 establishing a fund for the protection of the environment.&nbsp; The law aims to ensure that Luxembourg 1) meets its international obligations on climate action and 2) put in place an institutional framework for climate policy and establish a regime for the adoption of&nbsp;the integrated national energy and climate plan;&nbsp;the strategy for adapting to the effects of climate change; and&nbsp;the long-term strategy for reducing greenhouse gas emissions.

This law updates the legal framework on land planning in the country, notably to ensure that sustainable development principles are enshrined into territorial activities.

Art. 1 states the specific objectives of the law, including:

Objective 3: preserve the landscapes by guaranteeing their integrity and by maintaining the agricultural and forestry functions, viticultural, ecological, recreational and climatic

Objective 8: maintain climatic regulation surfaces, ecological corridors between different habitats and natural biotopes, and

Objective 9: reduce greenhouse gas concentrations in the atmosphere, by organising natural carbon sequestration.

The document further defines land planning with regard to renewable energy projects.

The budget law in Luxembourg has been related to climate change mitigation efforts for a number of years. In the budget 2018, the law of December 15th, 2017, stipulates in article 28 that the product of the climate change contribution levied on liquid fuels and its assignment to the Climate and Energy Fund can be charged on the revenue and expenditure budget. Article 29 states that the product of the road vehicle tax can be charged on the revenue and expenditure budget and be affected to the Climate and Energy Fund for 40 pr cent of the total. &nbsp; &nbsp;Article 129d of the budget law defines the conditions of tax rebate for the private ratepayer acquiring a new low-carbon vehicle. The "sustainable mobility rebate" applies to 1) zero-emissions cars functioning with electricity or fuel-cell hydrogen, 2) an electrically-assisted cycle, 3) a cycle registered after December 31st, 2016, and 4) a rechargeable hybrid car with emissions under 50 g CO2/km registered after December 31st, 2017.

The package on climate bank and sustainable housing of December 23th, 2016, is a broad set of laws aiming at enhancing the sustainable use of energy in the housing sector, and at instituting a climate subsidy scheme. The package consists of four new laws, and two amendments to previous laws. National regulations (Règlement grand-ducal) further details the scheme conditions set out in each law. The first law institutes a subsidy scheme to promote sustainability, rational energy use and the use of renewables in the housing sector, and modifies the <a href="http://legilux.public.lu/eli/etat/leg/loi/2004/12/23/n1/jo">law of December 23rd, 2004</a>, <a href="http://legilux.public.lu/eli/etat/leg/loi/2012/12/26/n2/jo">amended in 2012</a>, on a trading quotas scheme. It specifies the conditions to benefit the scheme, which includes specific grants for newly built personal homes and collective buildings, with regard to retrofitting, and lists the eligible installations: PV solar, thermic solar, heat pump, wood boiler, heat network and connection to a heat network. The scheme also promotes personal energy consulting in the case of retrofitting. The second law introduces a system of certification to assess the sustainability of houses and buildings, and modifies the law of February 25th, 1979 on housing subsidies. A national regulation specifies extensively the criteria of the new sustainability certificate. The certificate, which is also promoted by a subsidy, shall be accessible to any potential buyer. The third law sets rules with regard to the collection, seizure and control of housing aid cases and applicability is also determined by a national regulation. The fourth law institutes the aid framework of climate loans. These loans are an additional feature of the subsidy scheme aimed at promoting sustainable energy use in the housing sector. They include a zero-rate loan scheme to finance the acquisition of energy and retrofit systems, and apply to certain economic categories of households only. Previous regulations revised by the Package include the <a href="http://legilux.public.lu/eli/etat/leg/rgd/2007/11/30/n7/jo">2007 national regulation</a> and the <a href="http://legilux.public.lu/eli/etat/leg/rmin/2013/01/16/n1/jo">2013 ministerial regulatio</a>n on energetic performance.

Luxembourg. 2022 National Inventory Report (NIR), National Inventory Report from Luxembourg in 2022

Luxembourg. 2021 National Inventory Report (NIR), National Inventory Report from Luxembourg in 2021

Luxembourg. Biennial report (BR). BR 4, Biennial Report from Luxembourg in 2020

Luxembourg. National Communication (NC). NC 7., National Communication from Luxembourg in 2018

Luxembourg. 2021 National Inventory Report (NIR)

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