OECD Environmental Performance Reviews: Luxembourg 2020
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Luxembourg has made progress in decoupling environmental pressures from economic growth, treating wastewater and managing waste and materials. It has also positioned itself as an international centre for green finance. Yet, it remains one of the most carbon- and material-intensive economies in the OECD. The country is a crossroads for freight traffic and attracts thousands of daily cross-border commuters. This exacerbates greenhouse gas emissions, air pollution and road congestion. Urban sprawl, landscape fragmentation and agriculture exert strong pressures on biodiversity.
To steer its economy towards a greener model, Luxembourg has set ambitious environmental objectives. Greening taxation, providing stronger price signals, promoting eco-innovation and the circular economy, mainstreaming biodiversity into all policies, and investing in low-carbon infrastructure and sustainable mobility, should be priorities.
This is the third Environmental Performance Review of Luxembourg. It evaluates progress towards green growth and sustainable development, with special chapters focusing on two major issues: air quality and mobility, and biodiversity.
Also available in: French
Effective carbon tax rates are among the lowest in OECD Europe
Effective tax rates on CO2 emissions from energy use in the road and non-road sectors, OECD Europe, 2018
Also available in: French
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