Investment aid for the protection of the environment

Last update

Businesses that invest in eco-technology or environmentally friendly processes may be eligible for specific financial aid.

The aid may take the form of a capital grant, a recoverable advance payment, an interest relief, a guarantee or a loan.

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 (French, Pdf, 1.44 Mb) (guide du requérant) is available to help businesses fill in their 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

Submitting the application

The application for investment aid for the protection of the environment is to be submitted using the online assistant available on MyGuichet.lu.

The person submitting the application (the applicants themselves or their representatives) must have a LuxTrust product or an electronic identity card.

The application must be submitted before the commencement of the work.

How to create a business eSpace on MyGuichet.lu

There are 2 possible scenarios:

  1. You are a new user of MyGuichet.lu. You must:
    • first register on MyGuichet.lu; and
    • then create a business eSpace.
  2. You already have a private eSpace on MyGuichet.lu. You can directly create a business eSpace without having to register again.

Further information as well as tutorials in relation with the business eSpace are available in our dedicated help page.

Before work starts means 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.

Maximum amount of financial aid

The amount of aid varies between 10 % to 100 % of the eligible costs, 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
more than 3 years prior to the entry into force of standards
between 1 and 3 years prior to the entry into force of 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 eligible costs and the operating margin of the investment
Aid for environmental studies 70 % 60 % 50 %

Payment of the aid

The capital subsidy and repayable advance are paid out after the completion of the project, programme or activity.

However, one or more advance payments may be made as the investments are made.

The application for payment of the aid is to be submitted using the online assistant available on MyGuichet.lu. This can be done in 2 different ways:

  1. in a detailed manner, where each individual cost is reported: to be used if there are 10 invoices or less to be declared; or
  2. in a summarised manner, where the total per type of cost is reported: to be used if there are more than 10 invoices to be declared.

Details of the documents to be provided depending on the cost statement templates are available under 'Pièces à joindre à la démarche en ligne MyGuichet.lu de demande de paiement' below.

The person submitting the payment application (the applicants themselves or their representatives) must have a LuxTrust product or an electronic identity card (eID).

Online services and forms

Who to contact

  • Ministry of the Economy General Directorate - Industry, New Technologies and Research (Financing and State Aid)

    Address:
    19-21, boulevard Royal L-2449 Luxembourg Luxembourg
    L-2914 Luxembourg
    Email address:
    FAE@eco.etat.lu

Related procedures and links

Procedures

Tutorials

Links

Publications

Legal references

Your opinion matters to us

Tell us what you think of this page. You can leave us your feedback on how to improve this page. You will not receive a reply to your feedback. Please use the contact form for any specific questions you might have.

Fields marked with an asterisk (*) are mandatory.

Did you find what you were looking for?*
How would you rate this page?*
Very poor
Very good

Leave a comment to help us improve this page. Do not provide any personal information such as your email address, name, telephone number, etc.

0/1000

Please rate this page

Your opinion has been submitted successfully!

Thank you for your contribution. If you need help or have any questions, please use the contact form.

Would you like to help us make digital public services more user-friendly by submitting your suggestions for improvement?

Then visit Zesumme Vereinfachen, the online participation platform dedicated to administrative simplification in Luxembourg.

Let's simplify things together

An error occurred

Oops, an error has occurred.