Investment aid that promote environmental protection and decarbonisation
Reducing or eliminating greenhouse gas emissions? Going beyond mandatory environmental standards? Access up to 70% co-funding under Luxembourg's Environmental Law — the broadest environmental investment aid available.
Do you want to request financial aid for an environmental protection or decarbonisation investment?
Under the Law of 8 December 2025 on Luxembourg's environmental and climate protection aid scheme, the Ministry of the Economy offers investment aid to businesses that strengthen environmental protection or reduce and eliminate greenhouse gas emissions (GHG).
Article 5 is the broadest measure under the Environmental Law. It applies to all environmental investments that are not covered by the more specific provisions of Articles 6 to 12 — including investments in industrial decarbonisation, carbon capture and utilisation (CCU) or storage (CCS), renewable hydrogen, and any other measure that goes beyond current mandatory standards.
Eligible investments must achieve at least one of the following:
- go beyond current EU or national mandatory environmental standards
- be implemented in the absence of mandatory standards
- comply with adopted but not yet in force EU or national standards, provided the investment is completed at least 18 months before the standard enters into force
The eligible costs are the additional investment costs directly linked to the higher level of environmental protection — not the full project cost. In specific cases (no less environmentally friendly counterfactual, or no investment without aid), total investment costs may be eligible.
We can advise you on:
- whether your company and project meet the eligibility criteria
- which application procedure applies to your situation
- how to structure your eligible costs and submit your application via MyGuichet.lu
Maximum amount of financial aid
The amount of aid is calculated on the basis of eligible costs. The applicable rate depends on the size of your company and the nature of the investment — specifically its return on investment (ROI), which determines whether the "additionality" bonus applies.
Large company | Medium company | Small company | |
Going beyond standards | 30 % | 25 % | 20 % |
100% GHG elimination | 35 % | 30 % | 25 % |
Carbon capture (CCS/CCU) | 25 % | 20 % | 15 % |
With the additionality bonus (low ROI projects): rates are doubled
| Large company | Medium company | Small company | |
| Going beyond standards | 60 % | 50 % | 40 % |
| 100% GHG elimination | 70 % | 60 % | 50 % |
Important: The application must be submitted before the start of works or the first binding order of equipment.
Important: Investments in equipment using fossil fuels (including natural gas) are not eligible — except for additional components improving the environmental performance of existing installations, provided they do not increase production capacity or fossil fuel consumption. %
Key figures
First come, first served
Key benefits
Benefit from the following advantages:
-
The broadest environmental investment aid available
Article 5 covers the widest range of eligible investments under the Environmental Law: industrial decarbonisation, process electrification, renewable hydrogen, carbon capture and any other measure going beyond mandatory standards. If your project does not fit a more specific article, it likely falls here. -
Aid rates that adapt to your project's economics
The additionality mechanism doubles the standard aid rate for projects with a low return on investment, making it particularly attractive for ambitious, capital-intensive decarbonisation projects that would not proceed without public support. -
Expert support throughout the process
Luxinnovation helps you assess your eligibility, identify the right application procedure, structure your eligible costs and submit your application via MyGuichet.lu — reducing complexity and maximising your chances of success.
Who can benefit?
This aid is open to all companies legally established in Luxembourg that hold a valid business permit and are investing in environmental protection or decarbonisation measures that go beyond current mandatory standards.
Key eligibility conditions include:
- The investment must generate a measurable improvement in environmental protection compared to the reference scenario
- The investment must not simply bring the company into compliance with existing mandatory standards
- Investments in fossil fuel equipment (including natural gas) are excluded — except for additional components on existing installations that do not increase capacity or fossil fuel use
- For CCS/CCU investments: the project must be integrated into a complete CCS or CCU chain and have a negative net present value (NPV) over its lifetime
- For renewable hydrogen: equipment and infrastructure must use or transport exclusively renewable hydrogen
Minimum thresholds apply:
- EUR 50,000 for SMEs
- 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.
