15 municipalities responded to the first national “Smart City” project call launched in June 2025. A second application window remains open until 15 March 2026, with €4 million in funding still available to support Luxembourg’s communes in their green and digital transitions toward more efficient resource management.
From drinking water and public lighting to building heating and parking, numerous municipal services can now be optimised through smart technology to benefit both citizens and budgets. To encourage this shift, the Ministries of the Economy and the Environment, alongside the Association of Luxembourg Towns and Municipalities (Syvicol), are driving the initiative forward with a second call for projects.
Following the initial call, 15 projects were submitted across three key areas: mobility, energy, and resource management. Five were selected for the main funding stream: three in mobility, one in energy, and one in resources. Six proposals were submitted to the Climate and Energy Fund. While four projects were not selected, they were deemed relevant. Two will receive support from the Environment Protection Fund, and two will be presented to the Water Management Fund in March.
“The projects are very varied,” noted Minister of the Economy Lex Delles. He highlighted several examples: a shared space management system in Bertrange using cameras and sensors to monitor car, bicycle, and pedestrian mobility; a parking guidance project for the Gaalgebierg recreational area led by Esch-sur-Alzette and Sanem, which directs drivers to alternate lots or triggers shuttle bus despatches; smart building management in Roeser enabling remote control of heating and lighting; and a flood management system in Wasserbillig where sensors link weather data to water levels, alerting technical services instantly during rises.
Projects are eligible for subsidies covering up to 50% of costs, or 60% for inter-municipal collaborations. Small municipalities with fewer than 3,000 inhabitants receive an additional 10%, plus €25,000 if they engage external support. “In the best-case scenario, 80% of project costs can be co-financed for projects spanning two years,” summarised Environment Minister Serge Wilmes. He encouraged more municipalities to participate and propose collaborative projects to maximise aid. Subsidies are capped at €500,000 per project.
A total budget of €5 million had been allocated for developing “Smart City” projects. To date, only €937,749 has been disbursed to the six projects selected in the first wave. “Consequently, there is a budget of €4 million remaining,” Minister Delles noted.
Syvicol head Emile Eicher described the initiative as “particularly exciting” because it aims to encourage municipalities to take calculated risks in developing new management tools and to build their confidence. He stressed that the financial risk for a municipality in developing a pilot project is minimal, while the programme offers the opportunity to gather data that could justify more significant future investments.
Eicher also identified a current challenge: the link between municipalities and innovative local businesses. “What’s missing is that new, highly innovative Luxembourgish companies are not well-known and don’t have the trust of the municipalities, which are a bit reluctant because they don’t want to take too high a risk,” he acknowledged.
