Cleantech

The installation and development of businesses within the field of environmental technologies are one of the priorities of the Luxembourg government's economic diversification strategy and are essential for meeting the challenges of the green transition, of climate change and the loss of biodiversity.

Luxembourg is committed to becoming a pioneer on the dual environmental and digital transition by investing in circular, sustainable projects, and by aiming for carbon neutrality.

Luxembourg's ambition is to develop resilient circular value chains, with low carbon emissions, by putting a special emphasis on the construction sector and agri-food activities.

The focus is on energy efficiency and the efficient use of resources, while strengthening the security of supply and the use of renewable energies, followed by electrification using renewable energy, renewable hydrogen and ultimately the capture and use of CO₂ for some activities that cannot be decarbonised by any other means.

Since the sector is extremely diverse and varied, efforts are not limited to purely cleantech companies, they also encompass other sectors that are developing sustainable and clean technologies, such as sustainable construction, sustainable mobility or the circular economy.

The circular economy

Since the industrial revolution, our economies have worked in a linear fashion. We use natural resources to make products that end their life as waste. This is a "take-make-waste" economy.

The circular economy suggests a type of economy that is different to the linear model. The guiding principles of the circular economy are simple: to design products and services that create no waste (or less waste) or pollution; to extend as much as possible, the useful life of products and the materials that are used to make them; and finally, re-use or recycle. We are moving from a linear to a circular model.

The Ministry of the Economy is promoting this paradigm shift to transition to a circular economy, particularly taking into account the principles of circular product design, increasing sustainability and extending the lifespan of products, using circular business models as well as circular data.

In February 2021, the government published the "Circular Economy Strategy Luxembourg" which suggests tools and methodologies for applying the principles of the circular economy in key economic sectors for Luxembourg, using an holistic value chain approach. The economie-circulaire.lu portal explains the key elements of the strategy.

Furthermore, the government has launched the Product Circularity Data Sheet (PCDS) initiative, which aims to standardise the circular data on products by producing clear, verifiable and standardised information on how a product is designed and manufactured, that covers its entire life cycle.

In 2023, the Ministry of the Economy created Terra Matters, which is tasked with the governance and marketing of the Product Circularity Data Sheet (PCDS) and supporting the transition to a circular economy.

Ecoconstruction (sustainable construction)

The Ministry of the Economy is a founding member of the National Council for Sustainable Construction (CNCD, Conseil national pour la construction durable ), which aims to establish a concerted national approach to sustainable construction, to promote sustainable construction, to position Luxembourg on the market of the Greater Region and to create strong links with international associations such as the World Green Building Council.

A key project being developed by the Ministry since 2023 in close collaboration with the stakeholders in the CNCD, is the "Low carbon construction roadmap for Luxembourg", which aims to develop the tools needed to transpose the Energy Performance of Buildings Directive and make these tools available to the sector.

Furthermore, the Ministry of the Economy is cofounder of Neobuild GIE, the technological innovation pole for the sustainable construction sector. Neobuild is dedicated to accelerating and facilitating monitoring and transfer of technology and regulations for innovation in the construction sector. The GIE's key areas of expertise are sustainable construction (materials, circular construction, healthy buildings, intelligent buildings) and construction 4.0 (digitalisation, automation, on-site assembly techniques). 

The ministry has contributed to the development of the new " Guide de la construction durable" (Sustainable construction guide), which is now being published in the form of a digital portal www.noba.lu (Nohalteg Bauen), and which brings together the best practices for sustainable construction in Luxembourg.

For more information on sustainable construction in Luxembourg, please see the "Sustainable Construction" section.

Sustainable mobility

The Government also supports the smart mobility sector as a priority for economic diversification. The emergence of data-driven mobility services, including shared, cooperative, connected and automated mobility is actively encouraged.

Driven by its own specific mobility challenges, the country has committed to decarbonise transport and to implement an integrated multimodal mobility system.

The objective is to make Luxembourg into the pioneering European country in the field, by positioning itself as a living laboratory for intelligent mobility solutions.

The AutoMobility campus in Bissen aims to support these objectives. As a true open-air laboratory, the site encourages the implementation of research and innovation activities. Since 2024, the campus has housed the first car park constructed using eco-circular methods, as well as a dedicated incubator. 

Financial aid for businesses

The Ministry of the Economy offers several types of aid for businesses, some of which are specific to the cleantech sector.

Other aid is offered via the Agency for the promotion of innovation and research, Luxinnovation.

The Klima-Agence, the national structure for information and advice within the field of energy efficiency and renewable energies, offers neutral and free advice to businesses to give them insight into the options for reducing their energy consumption, to promote forms of renewable energy and to benefit from the relevant state subsidies.

Lastly, the Klimapakt fir Betriber initiative lists, in a catalogue, all of the measures and solutions available to support businesses in their decarbonisation and energy-transition efforts.