Investment aid for the protection of the environment
Businesses that invest in eco-technology or environmentally-friendly processes may be eligible for specific financial aid.
Aid is granted in the form of a capital grant or interest relief.
Who is concerned
Businesses concerned
The financial aid is available to any business or natural person holding a business permit.
Eligible costs
An applicant's guide (guide du requérant) is made available to help fill in the application.
The financial support scheme provides for several types of investment (schemes) which may be eligible for public financial aid:
- investments enabling businesses to exceed EU environmental protection standards or to increase the level of environmental protection despite the absence of such standards;
- early adaptation to future EU standards;
- investments in energy efficiency measures;
- investments in high-efficiency cogeneration;
- investments in the production of energy from renewable energy sources;
- investments in the remediation of contaminated sites;
- investments in the district heating or cooling distribution network;
- investments in the recycling or re-use of waste;
- investments in energy infrastructures;
- aid for environmental studies.
Prerequisites
All businesses which meet the general conditions that apply to State aid are entitled to this type of aid.
How to proceed
Filing an application
In any case, aid applications must be submitted prior to starting the works, i.e. before:
- the beginning of construction works in relation with the investment;
- the first legally binding order of equipment or any other commitment making the investment irreversible.
The purchase of land and the preparatory work such as applying for and receiving authorisations and carrying out feasibility studies are not considered as a commencement of works.
In the case of a repurchase of assets, the commencement of works is the moment the assets which are directly related to the acquired establishment are purchased.
Applicants have to complete the application form for investment aid for a project on environmental protection and join the supporting documents listed in the form.
They can use the applicant's guide (guide du requérant) in force at the time of the application to compile their application file.
Once the application is completed and signed by a person authorised to sign on behalf of the company, the application must be submitted in electronic format or sent by post to the Ministry of the Economy. In the event of a submission by post, the following must be indicated on the envelope:
Ministère de l'Economie
Demande d'aides d'Etat
L-2937 LUXEMBOURG
Maximum amount of financial aid
The amount of aid varies between 10 % to 100 % of the investments, depending on the type of project and the type of business applying for aid.
The table below summarises the maximum amount of aid that may be granted under all aid schemes, expressed as a percentage of eligible costs. Each line represents a specific aid scheme or measure.
Degree of aid depending on the type of scheme
| Small business | Medium business | Large business | ||
| Investment aid allowing businesses to go beyond the EU standards on environmental protection or to increase the level of environmental protection in the absence of EU standards | 60 % |
50 % |
40 % |
|
Investment aid for early adaptation to future EU standards |
20 % 15 % |
15 % 10 % |
10 % 5 % |
|
| Investment aid for energy efficiency measures | 50 % | 40 % | 30 % | |
| Investment aid for high-efficiency cogeneration | 65 % | 55 % | 45 % | |
| Investment aid for the production of energy from renewable energy sources | ||||
a) Identifiable separate investment or investment as a deduction from a counterfactual reference |
65 % | 55 % |
45 % | |
b) Investment in certain smaller installations (without deduction from a counterfactual reference) |
50 % | 40 % | 30 % | |
| Investment aid for the remediation of contaminated sites | 100 % | 100 % | 100 % | |
| Investment aid for the district heating or cooling distribution network | ||||
a) Production plant |
65 % | 55 % | 45 % | |
b) Distribution network |
cannot exceed the difference between the eligible costs and the operating profit over the relevant lifetime of the investment | |||
| Investment aid for the recycling or re-use of waste | 55 % compliance with the principle of waste hierarchy |
45 % compliance with the principle of waste hierarchy |
35 % compliance with the principle of waste hierarchy |
|
| Investment aid for energy infrastructures | aid which does not exceed the difference between the allowable costs and the operating margin of the investment | |||
| Aid for environmental studies | 70 % | 60 % | 50 % | |
Payment of aid
The capital subsidy and repayable advance are paid out after the implementation of the investments or expenditures concerned. However, one or more advance payments may be made along with the investments or costs occurring.
Aid in the form of equity contributions may be paid before the completion of the project whereas aid granted in the form of interest relief is transferred to cover the payment of interest as provided for in the loan contract benefiting from interest relief measures.