The Mouvement Ecologique recently had a promising first exchange with Minister Lex Delles.

The Mouvement Ecologique recently had a promising first exchange with Minister Lex Delles.

Orientation of Luxembourg’s economic policy …

The first topic of discussion was the general direction of Luxembourg’s economic policy. In this regard, the Mouvement Ecologique referred to the initiatives of the previous governments: Both the “Rifkin Strategy” and the “Luxembourg Strategy 2050” of the previous government – despite all the criticism that was raised – had the merit of raising fundamental questions: how the economy could be made less vulnerable, especially in times of multiple crises, how the goal of a circular economy could be achieved, how regionalisation could be ensured, etc. The concern of the Mouvement Ecologique is that every new minister starts a new strategy process. The result is that although every government is working on a debate about the direction of economic policy, no progress is being made in concrete terms to the extent necessary to make the economy more sustainable.

Minister Lex Delles stated that the strategies mentioned were still a basis for reflection for his ministry.

In this context, the Mouvement Ecologique argued that limit values from a health or environmental perspective should not be exceeded by the establishment of a new business. In the Google dossier, for example, according to the limited information available, water consumption for cooling purposes would exceed the available resources.

In other cases, however, it may well be that existing businesses already have such high emissions that a new business – even if it were to produce more cleanly than others – would exceed the permitted limit values on site. It would be necessary to draw up concepts for entire industrial zones and, if necessary, encourage existing companies whose emissions could be reduced to optimise their production methods. In general, it would be necessary to make activity zones more sustainable. For example, greening would also be an issue in order to improve the quality of the workplace.

… through concrete projects

The minister stated that he would approach the general discussion about the economic development of the country in a very concrete way, which would result in three pilot projects concerning activity zones, among other things:
– In an industrial zone, the extent to which “mutualisation” could take place, i.e. mutual use of material flows, rooms (e.g. shared canteens) etc. by companies based there, would be investigated;
– In a further zone, approaches to denser construction methods and thus to a space-saving utilisation of the available space should be initiated, e.g. multi-storey buildings (
– Finally, in a third measure, in the sense of decarbonisation.
Lessons for a generalised approach should then be drawn from these projects. Results should be available by 2025 if possible.

The Mouvement Ecologique welcomed this approach in principle, but also argued that mobility aspects should also be included. Especially if activity zones are to be used more “densely”, which is to be welcomed, the number of traffic movements would possibly increase. It would therefore make sense to create proper mobility concepts for entire zones (customised bus routes and timetables, car sharing, parking space management, organisation of carpooling opportunities, etc.).
The Minister welcomed this suggestion and indicated that he would also take concrete action in this area and implement a mobility concept as part of a pilot project. The aspect of greening should also be included.

“Sustainability” or “compatibility check” for companies

In this context, the Mouvement Ecologique also raised the issue that the so-called “compatibility check” for businesses should be disclosed (this contains the elements of a “sustainability check”). Among other things, this is intended to regulate which environmental criteria a company must respect if it wants to set up or expand its activities in Luxembourg.
If the government had had such an instrument in place years ago, the controversies surrounding Fage, Knauff and Google could probably have been avoided. Because then the companies would have been aware of the conditions from the outset. In this context, the Mouvement Ecologique also raised the issue that the so-called “compatibility check” for businesses should be disclosed (this contains the elements of a “sustainability check”). Among other things, this is intended to regulate which environmental criteria a company must respect if it wants to set up or expand its activities in Luxembourg.
If the government had had such an instrument in place years ago, the controversies surrounding Fage, Knauff and Google could probably have been avoided. Because then the companies would have been aware of the conditions from the outset.

The Minister stated that a catalogue of criteria was available and would also be used when requesting the approval of new businesses that have a significant national or regional impact. The Mouvement Ecologique again asked to be given access to the criteria, which the Minister agreed to in principle.

Mercosur treaty
During the meeting, the Mouvement Ecologique also pointed out that a sustainable economic policy would mean that Luxembourg would have to reject the so-called Mercosur treaty (the free trade agreement between Europe and 5 South American countries, including Brazil and Argentina).

Deal with the issue of growth
Another point of the discussion was the issue of growth. It is known that the current government is focussing on growth and that the Mouvement Ecologique, on the other hand, is in favour of making the Luxembourg social system less dependent on growth.
This is because no one can know whether annual growth of 3-4% would materialise in this form in the future, even if this were the aim. The Covid crisis, the war in Ukraine and the resulting supply problems, etc. have sufficiently demonstrated this.
The Mouvement Ecologique presented the Minister with an analysis that the WIFO (Austrian Institute of Economic Research) had prepared on the subject on behalf of the Mouvement Ecologique.

Expanding heating networks
Energy issues were another point on the agenda. In particular, the aspect of the (expansion) construction of heating networks was discussed. The construction of heating networks is the ultimate prerequisite for the energy transition. However, many specific questions regarding implementation have not yet been clarified, meaning that construction is not progressing. For example, questions such as: Who maintains heating networks? What competences do municipalities have? These questions have not yet been sufficiently clarified.
In this context, the Minister stated that heating plans are currently being planned for larger municipalities. In addition to demand and potential, the conditions under which municipalities can operate a heating network are also to be analysed. Concrete measures and recommendations for the general planning of heating networks should then be derived from this. However, this planning will not be finalised for a few years.

The Mouvement Ecologique welcomed this approach in principle, but warned against taking too long in view of the urgency of the dossier and at the same time called for additional initiatives. Stagnation in this area would not be acceptable. Among other things, it was suggested that at least all interested municipalities and stakeholders should be involved so that they can explain which aspects require clarification on their part. The Minister then suggested that key issues should be identified in a further dialogue.

16.02.2024