Luxembourg’s energy demand and greenhouse gas emissions have shown signs of decoupling from its robust economic and population growth and the country doubled the share of renewables in its energy supply from 2008 to 2018. The government has adopted an ambitious target to reduce greenhouse gas emission 50-55% by 2030 compared to 2005.


Key energy statistics

Key recommendations, 2020

  • Consider gradual introduction of carbon pricing, taking into account the social dimension

    Currently, energy is considered too cheap to drive behaviour towards more energy efficiency, e-mobility and fuel switching.

  • Develop scenarios on how to achieve the ambitious 2030 renewable energy targets

    Scenarios should include expectations for regional renewable energy deployment, for the different end-use sectors, and for centralised and decentralised options.

  • Reconsider the adequacy of approval procedures for electricity infrastructure

    Establish rules to evaluate alternatives to grid extension, and consider whether it would be necessary to establish rules for congestion management and curtailment compensation in relation to variable renewable energy

  • Finalise a legal framework for smart meters and energy data

    This will support the active participation of consumers in the electricity and natural gas markets, facilitate new service providers, and enhance security of supply.

  • Examine the effects of the recent fuel tax increases

    Consider further incremental increases that support the achievement of greenhouse gas emission reduction targets.

  • Evaluate how much existing transport policies contribute to 2030 targets

    Formulate a set of coherent measures to achieve a sustained reduction in fuel demand.