Investment aid for the efficient use of resources and support for the transition to a circular economy
Do you want to request financial aid for a resource efficiency or circular economy investment?
Under the Law of 8 December 2025, the Ministry of the Economy offers investment aid to companies investing in the efficient use of resources and the transition towards a circular economy.
Article 10 supports four types of investment:
- Resource efficiency — at least 15% net reduction in material resources consumed per unit of output, or replacement of at least 20% of primary raw materials with secondary ones
- Waste prevention, preparation for reuse, decontamination and recycling — covering waste produced by the beneficiary or by third parties that would otherwise be unused or treated through a lower-priority operation in the waste hierarchy
- Collection, sorting, decontamination, pre-treatment and processing of other products, materials or substances generated by the beneficiary or by third parties that would otherwise be unused or used less efficiently
- Selective collection and sorting of waste for the purpose of preparation for reuse or recycling
Please note: Buildings, land, vehicles and rolling stock are not eligible. No aid may be granted for waste disposal or recovery operations aimed at producing energy, for investments linked to technologies that are already an established commercial practice throughout the EU, or for costs that are the legal responsibility of the company under waste management rules.
We can advise you on:
- whether your project and company meet the eligibility criteria
- which application procedure applies to your situation
- how to structure your counterfactual analysis and submit your application via MyGuichet.lu
Maximum amount of financial aid
The eligible costs are the additional investment costs compared to a less environmentally friendly counterfactual scenario. Where no less environmentally friendly equivalent exists, or where no investment would take place without aid, the total investment costs are eligible.
Aid intensity rates:
Small company | Medium company | Large company | |
Base rate | 60 % | 50 % | 40 % |
With additionnality | Up to 80 % | Up to 70 % | Up to 60 % |
The base rate may be increased by 5 percentage points for investments in assisted areas.
Please note: The application must be submitted before the start of works or the first binding order of equipment. Minimum thresholds apply: EUR 50,000 for SMEs and EUR 100,000 for large companies.
Key figures
First come, first served
Key benefits
Benefit from the following advantages:
-
A broad scope of eligible investments
Article 10 covers the full spectrum of circular economy investments: reducing material consumption, substituting primary raw materials, preventing and recycling waste, recovering unused materials from third parties and setting up selective collection infrastructure. -
Counterfactual-based cost calculation
Only the additional costs compared to a less environmentally friendly alternative are eligible. Where no such alternative exists, total investment costs are eligible, making the aid particularly well-suited to first-of-a-kind circular economy investments. -
Expert support throughout the process
Luxinnovation helps you assess your eligibility, structure your counterfactual analysis and submit your application via MyGuichet.lu.
Who can benefit?
This aid is open to all companies legally established in Luxembourg that hold a valid business permit.
Key eligibility conditions:
- For resource efficiency investments: at least 15% net reduction in material consumption per unit of output, or at least 20% substitution of primary raw materials with secondary ones
- For waste-related investments: the waste must otherwise be unused, disposed of or treated through a lower-priority operation in the waste hierarchy
- The investment must not simply comply with existing EU or national standards already in force
- The investment must not encourage the production of waste or an increase in resource consumption
- Buildings, land, vehicles and rolling stock are excluded from eligible costs
Minimum thresholds: EUR 50,000 for SMEs and EUR 100,000 for large companies.
Applications must be submitted online via MyGuichet.lu before any binding commitment is made.
This financial support measure is provided by the Ministry of the Economy.
Interested in applying for funding?
Feel free to contact us for further information and guidance. We are also available to discuss how this funding measure and others would best fit into your long-term strategy.
