Today, the Commission has given a positive assessment of Luxembourg's modified recovery and resilience plan, which includes a REPowerEU chapter. The plan is now worth €241.1 million in grants and covers 10 reforms and 13 investments.
Luxembourg's REPowerEU chapter consists of one new reform and three new investments to deliver on the REPowerEU Plan's objectives to make Europe independent of Russian fossil fuels well before 2030. These measures focus on the deployment of renewable energy, increasing energy efficiency, and sustainable transport.
In addition to the new REPowerEU measures, the revised recovery and resilience plan removes one investment and modifies three other investments. Luxembourg's changes to the original plan are based on the need to factor in:
objective circumstances hindering the fulfilment of certain investments as originally planned, such as unexpected technical and legal difficulties outside the control of the national authorities;
the availability of better, administratively simpler alternatives to achieve the original ambition.
An additional boost to Luxembourg's green transition
The modified plan has further strengthened the focus on the green transition, allocating 80% of available funds to measures that support climate objectives (up from 69% in the original plan).
The new reform and investments included in the REPowerEU chapter contribute significantly to the green dimension of the plan.
The reform, the introduction of a National Biogas Strategy, revises Luxembourg's support scheme for biogas and contributes to increasing the production and uptake of sustainable biomethane.
The investments are financial support schemes to accelerate the green transition. They cover energy renovation and construction projects for housing, purchase of zero-emission cars, vans, mopeds and bicycles, and photovoltaic power plants for self-consumption in enterprises.
Supporting Luxembourg's digital preparedness and social resilience
The important digital ambition and social dimension of the plan is maintained.
The revised plan devotes 37.5% of its total allocation to support the country's digital transition, well over the target of 20%. Luxembourg's plan covers measures to digitalise public administration and the health system, as well as ultra-secure communication infrastructure based on quantum technology.
The strong social dimension of the plan is also maintained. The plan covers a skills component, more efficient public services, and an affordable housing reform (Housing Pact 2.0).
Next steps
The next step after the Commission's assessment is endorsement by the Council.
The Commission will authorise further disbursements based on the satisfactory fulfilment of the milestones and targets outlined in Luxembourg's revised recovery and resilience plan, reflecting progress in the implementation of the investments and reforms.
