The Environment Agency has suspended the processing of 7,000 applications for eco grants - primarily affecting bicycle subsidies - due to pending legislative approval in the Chamber of Deputies.
In mid-May, Minister of Energy Lex Delles and Minister of the Environment Serge Wilmes introduced a package of measures under the slogan “Simple - Quick - Renewable” to promote renewable energy. This followed the announcement of a new climate bonus for bogs and meadows, designed to enhance their financial viability.
However, as RTL recently reported, several climate bonus programmes face delays. The Environment Agency currently lacks the legal authority to disburse funds, leaving it unable to process payments.
2024 saw significant adjustments to Luxembourg’s environmental subsidy programmes. The Climate Bonus “Mobility” programme, which covers grants for bicycles, electric cars and other sustainable transport, was extended twice. The first extension in April 2024 covered the months of April, May and June, while a second extension in June 2024 included July, August and September. The old subsidy rates and rules remained in effect until 30 September 2024, with updated terms taking effect on 1 October 2024.
The subsidy reduction implemented on 1 October 2024 prompted a surge in applications as residents rushed to benefit from the more generous grants before the deadline.
However, even processed applications remain unpaid - both those submitted during the second extension period (July-September 2024) and those under the new system (since 1 October 2024) - due to the ongoing legislative delay.
According to detailed figures provided by the Environment Agency to RTL as of 19 May 2025, 7,000 applications are currently awaiting payment. The breakdown is as follows:
1 July – 30 September 2024: 496 applications
Since 1 October 2024: 626 applications
Total: 1,122 applications
1 July – 30 September 2024: 5,587 applications
Since 1 October 2024: 291 applications
Total: 5,878 applications
This backlog thus primarily stems from applications filed in summer 2024 when news of the impending subsidy cuts spread.
The Environment Agency emphasised that while payments cannot yet be made, applications are being processed as much as possible to facilitate swift payment once the necessary legislation passes.
The current impasse rests firmly with lawmakers. Environment Minister Serge Wilmes recently acknowledged that while the government adapted existing regulations promptly, complications arose during the legal formalisation process. These delays were compounded by the Council of State issuing formal objections to the proposed bill twice.
Prime Minister Luc Frieden had already addressed eco grants and the climate bonus programme in his State of the Nation address in 2024. By now, the Prime Minister has already given his 2025 State of the Nation address, and yet the legislative holdup persists. With no definitive timeline for resolution, applicants face continued waiting, as the Environment Agency cannot estimate when payments for the climate bonus “mobility” might commence. Minister Wilmes remains cautiously optimistic about a near-term breakthrough.
Looking ahead, proposed legislative changes aim to reduce financial burdens on applicants through a pre-authorisation system. This reform would allow residents to pay only the difference after subsidies, with approved amounts going directly to vendors rather than requiring full upfront payment from applicants. These modifications are expected to extend to the climate bonus “mobility” programme - contingent upon the bill’s eventual passage through parliament.
