Total greenhouse gas emissions (without LULUCF)

Luxembourg’s climate law, adopted on 15 December 2020, aims for zero net emissions by 2050 and a 55 % reduction in GHG emissions by 2030 (compared with 2005 levels) for sectors outside the EU Emissions Trading System (EU ETS). In addition, the country’s updated National Energy and Climate Plan (NECP, July 2024) aims for 37 % of consumed energy to come from renewables and a 42 % reduction in final . Luxembourg has made significant progress, with a 52 % reduction in the economy’s energy intensity – measured as total energy supply per unit of real gross domestic product (GDP) – and a 60 % reduction in the GHG intensity of GDP since 2005.

Total GHG emissions (excluding LULUCF) were 40 % lower in 2023 than in 2005, while emissions not covered by the EU ETS were 34 % lower. The latter are mainly produced by Luxembourg’s transport and building industries, sectors where emissions are typically more difficult to reduce than in the energy-intensive and/or power-generating sectors covered by the EU ETS. However, emissions from road transport have fallen significantly in recent years and have not returned to pre-COVID levels. This is the result of policies to reduce favourable price differentials with neighbouring countries, notably through the carbon tax. So far, these reductions have kept Luxembourg on track with its unilateral target of 55 % lower GHG emissions by 2030.

However, Luxembourg’s unique characteristics, such as importing most of its electricity and having to consider emissions from cross-border fuel consumption, complicate GHG accounting. These factors, combined with high population growth and cross-border commuting, as well as high energy dependency and limited renewable energy potential, require careful policy consideration to ensure real emission reductions.