The bill, which was discussed by Luxembourg parliament’s finance committee on Tuesday, would provide the necessary infrastructure to connect renewable energy sources to the electricity grid.

It complements existing different “lettres de gage”, debt instruments which are covered by a bond bank. What is more, the product could target different types of renewable “energy such as wind, solar, aerothermal, geothermal, hydrothermal, marine and hydroelectric, biomass, landfill gas, sewage treatment plant gas, biogas and any energy produced from similar sources,” the government said in a statement published on Tuesday.

While the details have yet to be fine-tuned, the bill states the bonds would be issued by banks authorised to do so under financial services authority the CSSF. Much of the final law will be shaped by two European initiatives related to bonds as an alternative financing channel, which aim to harmonise European standards.

MP André Bauler (DP) is rapporteur of the bill, which is awaiting an opinion from the council of state.