OECD Environmental Performance Reviews: Luxembourg 2020
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
Towards green growth
Chapter 3 analyses Luxembourg’s progress towards achieving a greener and more inclusive economy. It looks at efforts to build a sound policy and institutional framework for sustainable development. It reviews steps taken to green the tax system, by using energy and transport taxes to pursue environmental objectives and removing environmentally harmful subsidies. In addition, this chapter examines investment in sustainable infrastructure and services and the country’s eco-innovation performance, as well as opportunities for greening the financial sector. Finally, it briefly reviews progress in mainstreaming environmental considerations into development co-operation.
Also available in: French
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