The government is set to introduce a new climate bonus regime on 1 October, aiming to enhance social justice and ecological sustainability through reformed subsidies for housing and mobility, including incentives for used electric cars and CO2-neutral technologies.
After Prime Minister Luc Frieden announced the introduction of "pragmatic climate policies with incentives that motivate people to participate", Environment Minister Serge Wilmes provided further details at a press conference on Friday.
The new climate bonus regime will come into force on 1 October 2024. The aim is to achieve greater social justice, and to this end, the criteria for receiving the subsidies have been reformed to be more ecological and apply to both housing and mobility.
For example, high-consumption electric cars will no longer be eligible for subsidies in the future, and electric cars must be owned for at least three years. In addition, the government is introducing new subsidiaries for used electric cars, according to Wilmes: "The car must be registered in Luxembourg, and has to have been on the market for at least three years before it can be sold. You also have to keep the car for two years to receive the premium of €1,500. Otherwise, you have to pay back the premium."
David Glod, Deputy Director of the Environment Adminstration, observed that the new climate bonus seems to have been well-received by people: "What really interest people at the moment is everything related to technical installations, so from heat pumps to photovoltaic systems. Last year, we received almost twice as many enquiries as the year before. And what you can see now is that because of the war in Ukraine and the gas shortage, an awareness that we are dependent on fossil fuels has emerged. That's why people are more interested in investing in CO2-neutral technologies."
Wilmes also noted that prices of electric cars and photovoltaic systems are going down, which is why the government has decided to adapt the subsides. In the future, the bonus system will also work like the so-called 'tiers payant' (direct payment) system: "We are also working on a pre-financing project for subsides in the Ministry of the Economy. The first one will likely be introduced for photovoltaic systems in the autumn. This means that those making an enquiry only have to pay what is left over."
Wilmes hopes that this will motivate even more people to transition or to renovate.
You can find the full statement from the Environment Ministry, as well as the presentation of the subsidies, on the ministry's website.
