Continue increased subsidies for heating system replacement and energy-efficient refurbishment!
The government has decided not to extend the increased subsidies (“top up”) in the energy sector (renewable energies, refurbishments, etc.) under the “Solidarity Pact 2.0”, which expire at the end of the year.
Even without these “top ups”, Luxembourg has quite generous subsidies in the energy sector compared to other EU countries. A number of municipalities also provide additional financial assistance.
It is therefore understandable that the “top-up” subsidies for solar installations introduced as part of the “Solidarity Pact 2.0” will not be continued, as the subsidies for these in particular are very high.
However, the government’s decision not to extend the “top-ups” for the replacement o fossil-fuelled heating systems and the energy-efficient renovation of homes is extremely problematic in the eyes of the Mouvement Ecologique. The replacement of heating systems based on fossil fuels, in particular with heat pumps, is of paramount importance for the energy transition. This is also cited as a central measure in the national energy and climate plan, to which the new government has also committed itself in accordance with the coalition agreement. The same applies to energy-efficient refurbishment!
Heat pumps, for example, are currently far more expensive than fossil-fuelled heating systems. Without the increased subsidies, many homeowners will therefore probably continue to fall back on fossil-fuelled systems.
High subsidies make sense as long as sensible and important alternative future technologies have not yet reached the “mainstream”, partly because of their costs. This is still the case with heat pumps in existing buildings. We also know that energy-efficient refurbishment is also associated with high costs…
The government has now announced that it is working on a new subsidy system, although it is still unclear what this means in detail.
The Mouvement Ecologique is in favour of continuing the “top-up” subsidies for heat pumps and energy renovation until this new system has been established and put into practice. It would be irresponsible to cancel the current increased subsidies before the new system is in place.
This is essential, especially for financially weaker households, but also for the so-called middle class. The ecological transition can only succeed if the social dimension is taken into account. It should also be noted that although the government’s coalition agreement provides for the introduction of improved instruments to support financially weaker households, this has understandably not yet happened. General aid must not be reduced under any circumstances before these new systems have been introduced.
Luxembourg will be represented at the international climate conference (COP28) in the coming weeks. The new government has repeatedly emphasised that it considers the energy and climate crisis and increased energy independence to be a priority.
Unfortunately, this policy is not off to a good start so far and the Mouvement Ecologique is counting on improvements being made to the decision. In terms of political credibility, but above all to tackle the climate crisis in a real way and to ensure a certain social justice in this regard.
Mouvement Ecologique asbl
1.12.2023
(Translated with Deepl)