The Grand Duchy of Luxembourg has long-established itself as an environmental powerhouse, creating the framework for a sustainable future which is now followed world-wide. In the 2022 Environmental Performance Index, the country ranked 6th in environmental performance out of 180 countries. The heart of the Duchy, Luxembourg city, embodies the sustainable practices and beliefs of the country and leads the rest of the EU towards a more sustainable future. Read on to discover how one of the world’s smallest cities became one of the leading sustainable cities.
Structural Changes
60% of Luxembourg residents believe that climate change should be addressed and tackled by their national government – reflected in a number of structural changes made to the administration of the wider country. In 2004, the High Council for Sustainable Development was created; it implements nation-wide sustainability policies and provides support to regions – like the City – looking to better their environmental practices.
Sustainability in Luxembourg is enshrined in a number of key policies – since 2012, Luxembourg has rolled out a country-wide climate pact programme with its latest update, ‘Climate Pact 2.0’, in effect since 2021. This programme ensures municipalities work to reduce greenhouse gas emissions, manage finite resources efficiently and oversee sustainable investment into their region.
A sustainable Luxembourg is only one part of a larger goal for the Ministry of the Environment, Climate and Sustainable Development in Luxembourg – the belief that a global effort is needed to truly tackle climate change has influenced Luxembourg to get involved internationally. For example, the environmental minister in 2015, Carole Dieschbourg, helped create the Paris Agreement – an international treaty on climate change which was signed by 192 countries.
Economic Changes
Luxembourg city houses the ‘world’s first and leading platform dedicated exclusively to sustainable finance’ – the Luxembourg Green Exchange. The exchange was created to encourage capital investments into more sustainable causes; those who wish to be added to the exchange must meet strict entry criteria and undergo continuous reporting. In August 2020, the LGX managed 769 securities totalling $365 billion.
A world-first, the sustainable investments made as a result of the LGX have made the city of Luxembourg one of the most sustainable cities in the world, with regards to its stock exchange and economic impact.
Country-wide, sustainability in Luxembourg is seen through involvement in the EU’s Emission Trading System – 22 companies partake in the system which works to reduce the amount of greenhouse gases emitted by corporations. In fact, between 2005 and 2019, Luxembourg reduced its carbon intensity by GDP by 40% - compared with a 33% reduction in the EU.
Energy Changes
Sustainable Luxembourg is also a product of its move towards renewable energy sources. In 2020, 11.7% of energy consumption in the Duchy came from renewable sources compared with 0.9% in 2005 – this was a result of strategic tariffs, subsidies, and tenders by the region. Interested in how Luxembourg made such drastic progress? Click here.
From 2014 to 2019, Luxembourg prioritised increasing renewable energy sources – usage of solar panels doubled, and wind power tripled – and the Duchy had surpassed its renewable energy targets by 2020. As well as this, Luxembourg’s recent efforts to only build energy-efficient housing has reduced CO2 emissions in this sector by 12% over the last 10 years.
Sustainability in Luxembourg has been aided by the purposeful and impactful changes made to its energy consumption over the last 20 years – its success has led experts to predict that the Duchy will have 23-25% energy consumption by renewables by 2030, and 100% energy consumption by renewables in 2050.
Transport Changes
Around 176,000 commuters from Germany, Belgium, and France travel to the country for work every day. As a result, a large portion of the country’s carbon emissions derive from diesel and petrol-ran vehicles. Luxembourg has introduced countless measures, both country-wide and region specific, to reduce these levels.
The country offers government subsidies ranging from €3,000 to €8,000 euros for electric cars and up to €600 for an e-motorbike, moped and electric and standard bicycles – these subsidies will end in March 2024. Luxembourg has also installed 800 charging stations around the country for electric vehicles.
Luxembourg city has also taken a number of measures to incentivise drivers to make the switch to cycling. The sustainable city has designated certain streets as cycling boulevards – only cyclists can access these streets and drivers have to take alternate routes. Luxembourg city also has a bicycle share programme – ‘vel’OH’ – which has 100 stations around the city can be accessed via the vel’OH app.
As a result of these strategic measures, transport emissions in the country have reduced by 14% since 2005.
Everyday Changes
Sustainability in Luxembourg is also promoted through changes to everyday lifestyles in the city. These changes include:
- Food choices: the city houses communal allotments which residents can use to grow their own produce and plants. In 2009, Luxembourg city created the initiative Commune sans Pesticides which stopped the use of pesticides and encouraged organic produce.
- Clothing choices: 63% of residents buy second-hand clothing and initiatives such as ‘Rethink your Clothes’ promotes ethical and sustainable alternatives to the mainstream textile industry – such as buying second-hand, upcycled, and locally made clothing.
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Looking to make your business travel plans more sustainable? Check out our blogs on How to be More Sustainable in your Business Travel Plans and 5 Reasons Serviced Apartments are Leading the Way in Sustainable Travel.
