Environmental aid for industrial businesses.

This page was last modified on 05-02-2018

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 subsidies.

Applications for financial aid are to be submitted to the Ministry of the Economy's Department for Research and Innovation or the General Directorate for SMEs and Entrepreneurship.

Forms / Online services

Carry out your procedure:

Who is concerned

Businesses concerned

The financial aid is available to any business or natural person holding a business permit and whose primary or ancillary business involves carrying out an industrial activity in Luxembourg.

All businesses which meet the general conditions that apply to State aid are entitled to this type of aid.

Craft and commercial businesses must send their application for environmental aid to the General Directorate for SMEs and Entrepreneurship at the Ministry of the Economy.

Eligible investments

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.

Duration and deadlines

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 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.

How to proceed

Submitting the application

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 file is complete, they have to send it:

  • by email (.pdf and .doc files) to loi.environnement@eco.etat.lu or to info.aide.pme@eco.etat.lu. The subject line in the email must state the company name and the project name;
  • and by post to the Ministry of the Economy's Research and Innovation Directorate or to the General Directorate for SMEs and Entrepreneurship.

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 degree of aid that may be granted under all aid schemes, expressed as a percentage of eligible expenses. 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 %
70 % in the case of ecological innovation
50 %
60 % in the case of ecological innovation
40 %
50 % in the case of ecological innovation

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 50 % 40 % 30 %
Investment aid for the production of energy from renewable energy sources 60 % 55 % 45 %
Investment aid for the remediation of contaminated sites 100 % 100 % 100 %
Investment aid for the district heating or cooling distribution network 65 % 55 % 45 %
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 %

Accumulation rules

Aid granted under the different schemes may be accumulated with other aid compatible with the common market as long as it is granted in respect of other eligible costs.

However, this aid may not be combined with other national or EU aid covering all or part of the same eligible costs if such an accumulation will lead to an amount of aid which exceeds the maximum limits allowed.

Repayment

Businesses that were granted aid shall be obliged to repay said aid if:

  • they knowingly provide false or incomplete information, or;
  • they do not respect the conditions under which the aid was granted, or;
  • they sell the assets for which the aid was granted or stop using said assets before the end of a 5-year period starting from when the aid was first paid.

Regardless of the reason for repayment, the business must repay the capital grant or the amount of the gross interest subsidy, plus legal interest.

However, businesses may send a reasoned request to the Minister of the Economy if they wish to put forward specific circumstances justifying the non-repayment of all or part of the aid.

In the event of the voluntary cessation of activity, businesses must immediately inform the Minister of the Economy who may request partial or full repayment of the aid granted.

Who to contact

Ministry of the Economy
19-21, boulevard Royal
L-2449 - Luxembourg
Luxembourg
Phone: (+352) 247-84162
Email loi.environnement@eco.etat.lu

Ministry of the Economy

B.P. 535 - L-2914 - Luxembourg
Luxembourg
Phone: (+352) 247-84712
Fax: (+352) 247-74701
Email info.aide.pme@eco.etat.lu

5, avenue des Hauts-Fourneaux
L-4362 - Esch-sur-Alzette
Luxembourg
Phone: (+352) 43 62 63-1
Fax: (+352) 43 81 20
Email info@luxinnovation.lu