Major Developments

Luxembourg is advancing rapidly toward its climate goals, with legally binding targets to reduce emissions by 55% by 2030 and achieve net-zero by 2050. The country’s Integrated National Energy and Climate Plan (PNEC) sets a target for 49% of the car fleet to be electric by 2030.

To support this transition, Luxembourg offers generous financial incentives for zero-emission vehicles, including up to 86,000 Euros for new BEVs and FCEVs, and 81,500 Euros for second-hand BEVs. Public transport is also undergoing electrification, with 30% of buses already electric and full electrification of city buses expected by 2026. The rail network is over 90% electrified, and all passenger trains run on renewable electricity.

Charging infrastructure is expanding, with over 2,755 AC and 520 DC public charging points available nationwide. Digitalisation efforts include smart metering and the launch of the Leneda energy data platform. Luxembourg is also testing smart grid technologies through the Creos Living Lab and is actively participating in Task 53  Interoperability of Bidirectional Charging.

Sector Insights

As of January 2025, electric vehicles make up 10.79% of Luxembourg’s registered car fleet, with 7.07% being BEVs and 3.72% PHEVs. Between January and September 2025, 33.7% of newly registered cars were electric, showing strong market momentum.

In public transport, regional buses (RGTR) achieved 44.65% electric mileage in the first half of 2025, while the city of Luxembourg (AVL) is on track to fully electrify its bus lines by the end of 2026.

Luxembourg’s charging infrastructure is highly accessible. Nearly all residents are within five minutes of an AC charger and ten minutes of a DC charger. The country also leads in digitalisation, with widespread smart metering and a national platform for energy data. Smart grid pilots are exploring real-world applications of EVs, solar panels, batteries, and heat pumps.

Efforts to integrate renewable energy include financial support for Home Energy Management Systems (HEMS), launching in October 2026, and incentives for V2G-ready wall boxes.

Outlook

Luxembourg plans to introduce new legislation to support the “Right to Plug,” making it easier for tenants and co-owners to install private chargers. Incentive schemes will be updated to align with EU regulations (GBER and AFIR).

Charging infrastructure will continue to grow, with increased support for smart and V2G-ready systems. The rollout of HEMS subsidies will encourage integrated energy management in homes, while bidirectional charging capabilities will expand.

Public transport electrification will progress, with more regional and city buses transitioning to zero-emission models. These developments reinforce Luxembourg’s position as a leader in sustainable mobility and EV integration in Europe.