POLITICS & INSTITUTIONS - ECONOMY

Climate

Environment subsidy scheme saves 700,000t of CO2



More than a third of funded projects saw companies switch to renewable energies Photo: Shutterstock

More than a third of funded projects saw companies switch to renewable energies Photo: Shutterstock

Luxembourg’s government has spent more than €68m in support of companies introducing measures to better protect the environment since the launch of the scheme at the end of 2017.

Under the 2017 law, companies can apply for financial support from the state, for example for switching to renewable energies, improving energy efficiency or carrying out environmental studies.

Between 2018 and 2020, the government supported investments of €277.3m in total, contributing €50.18m to 63 different projects. This year so far, it has paid around €18m in support of environmental investments worth €120m. This does not include funds from covid-19 recovery packages.

More than a third of the projects funded saw companies switch to renewable energies, saving more than 630,000 tonnes of CO2, economy minister Franz Fayot said in answer to a parliamentary question, calling the programme a success. Another 71,200 tonnes of CO2 emissions were saved by projects to increase energy efficiency.

With the subsidies subject to EU state aid rules, Fayot said that Luxembourg is lobbying for simpler procedures as the European Commission is in the process of reviewing competition regulation.

The “Neistart” package launched by the government to support businesses in the wake of the covid-19 pandemic also has an environmental dimension.

Companies can apply for aid for projects to improve energy efficiency and exceed EU environmental norms. So far, the government has pledged €6.24m in support of 25 projects worth €13.36m in total. Another eight projects are pending approval and companies have until 31 October to submit a proposal.