Environmental law

National funding for environmental protection projects

The Law of 8 December 2025 on state aids for environmental protection provides Luxembourg companies with funding instruments, covering investments in decarbonisation, energy efficiency, renewable energy, circular economy and more. Aid rates range from 15% to 80% of eligible costs

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Aid for environmental protection, including decarbonisation

Projects that are designed to exceed environmental standards & which include low-carbon technologies, or dedicated infrastructures for hydrogen, residual heat or CO₂, or CO₂ capture & transport.

Aid for acquisition or conversion of zero-emission road vehicles

Purchase, lease or conversion of light or heavy goods vehicles to reach zero emissions.

Aid for measures promoting energy efficiency outside buildings

Investments that reduce final energy consumption by at least 20% or 250 MWh p.a., excluding fossil fuel infrastructure.

Aid for renewable energy, renewable hydrogen and high-efficiency cogeneration

Projects relating to the production, storage and transport of renewable energies, including biogas and high-performance cogeneration.

Aid for efficient heat or cooling networks

Construction, extension or modernisation of networks that mainly use renewable energies or waste heat.

Aid for resource efficiency and circular economy

Projects that seek to reduce the consumption of resources, replace raw materials with secondary materials, or improve waste recycling and reuse.

Aid for energy infrastructure

Construction or modernisation of infrastructure for electricity, hydrogen or heat, excluding gas or electricity storage.

Aid for environmental and energy studies and advisory services

Energy audits, feasibility studies, and technical advice on preparing eligible projects.

Aid for charging infrastructure

Fund AC or heavy-duty vehicle charging points with aid rates from 30% to 70%. A simplified SME scheme is also available.