The "Klimabonus Wunnen" scheme, which provides financial support for energy-efficient home renovations, has been extended until 2035, with the extension applied retroactively from 1 January.
From now on, upfront financing will also be available for heat pumps. In addition, subsidies for installations will now be paid as flat-rate amounts rather than being calculated based on performance, in an effort to encourage the selection of optimally sized systems rather than simply the most powerful ones.
The Green Party (Déi Gréng) backed the reforms, although their MP Joëlle Welfring expressed concerns about the shift to flat-rate subsidies. She argued that the capacity of an installation should depend on technical requirements rather than household income.
Minister for the Environment, Climate, and Biodiversity Serge Wilmes rejected claims that the changes were motivated by cost-cutting, emphasising that for all but the most powerful systems, the level of financial support will actually increase. He also stressed that a number of subsidies will continue to be means-tested.
Responding to a question from Luxembourg Socialist Workers’ Party (LSAP) MP Franz Fayot, Minister Wilmes noted that there are still 2,000 outstanding subsidy applications under the old system.
He said efforts are underway, including the involvement of external firms, to reduce the backlog to under five months. Over the summer, civil servants will also tackle the backlog of more than 500 applications submitted under the new regime.
A majority of MPs also approved amendments affecting affordable housing. Under the revised law, affordable homes are now classified as being "of public interest," paving the way for public-private partnerships between public authorities and private developers.
During the debate, Déi Gréng MP Meris Sehovic and Déi Lénk MP David Wagner expressed regret that the state does not have greater financial resources to purchase more housing itself.
