Luxembourg intends to meet its renewable energy and climate targets mainly through efforts at the EU and international levels. Luxembourg adopted challenging energy and climate targets for 2020 within the EU framework.
In the context of the EU objective of achieving a reduction of 80% to 95% of greenhouse gas emissions by 2050, and discussions around the 2030 climate and energy framework, Luxembourg’s white paper process is an opportunity to further work on a new integrated energy and climate strategy.
Given the regional integration of its gas and electricity markets, Luxembourg is also likely to be impacted by the decarbonisation policies of neighbouring countries, as it imports most of its energy needs.
Looking ahead, Luxembourg should seize opportunities for promoting a smart green economy, competitive retail markets, smart transport and mobility solutions, and regional integration of the short- and longer-term electricity markets, with a view to maximising energy security benefits while minimising costs to consumers.
Developing a long-term vision for the energy system up to 2030-2050 in consultation with all key institutions would provide Luxembourg with the opportunity to play an active and valuable role in enhancing energy security, and meet the decarbonisation challenges faced not only in Luxembourg but in the region. The regional element is vital, as it will encourage resource efficiency, and the interoperability of technologies and infrastructure, including in the transport sector. Two key institutions have a major role to play: the Ministry of the Economy, which has overall responsibility for energy policy including renewable energy; and Myenergy, a common agency of the Ministry of the Economy, which manages the promotion of the use of renewable energy resources.