The government must set the necessary framework for the energy transition: electricity prices for heat pumps and
electric cars must be cheaper than fossil fuels – financially weak households must be given more support.

If we want to limit the global temperature increase and tackle the climate catastrophe, the energy transition must be a success. This is in the interest of people living today, but also of future generations!

However, the energy transition can only be successful if it is a coherent strategy that regulates infrastructure expansion and ensures social support measures. In view of the considerable challenges for society, the state and the economy, the available funds must be used as efficiently as possible and targeted incentives must be created. The additional costs of delaying the energy transition and fossil fuel lock-in should also motivate rapid action.

The instruments are known: priority must continue to be given to energy conservation, energy efficiency, the development of renewable energies, the use of public transport, etc.

The systematic installation of heat pumps for heating buildings and e-mobility, instead of gas, diesel and petrol, are central pillars in the effort to reduce greenhouse gases. That is why they are also essential instruments of the national climate and energy plan.

Renewable energies are worthwhile for society, because fossil energies (including CO₂ emissions, air pollution, flooding…) cause costs in the trillions worldwide. For the end consumer, renewable energies currently also offer price advantages, as they are cheaper than fossil energies. But certain developments are causing debate: the prices for electricity at public charging stations for e-cars rose by 50%, the electricity pricing was reformed, and the electricity price cap is to be lifted in 2026, causing electricity to become more expensive.

The sense of insecurity is therefore great among some citizens:

In view of the removal of the electricity price cap, recent and expected developments, is it still financially worthwhile to buy an electric car or install a heat pump, or will you even be at a disadvantage compared to owners of combustion engines and gas heating systems? Where are these increases coming from anyway? How can peak loads in electricity consumption be avoided so that you don’t have to pay higher prices under the new tariff structure?

It should be noted that Luxembourg has low energy prices overall (electricity, gas, diesel, petrol) compared to other countries. In the opinion of the Mouvement Ecolologique, there is no way around the fact that the prices of fossil fuels – diesel, petrol, gas – will continue to rise. The costs to society arising from their use are too high. They are too responsible for climate change and damage to health caused by poor air quality. Dependence on authoritarian states is also too great.

But the good news is that there are alternatives – in other words, the expansion of renewable energies. These also create jobs and reduce long-term geopolitical dependencies.

That is why the government must go much further than in the past in creating the right incentives to promote the expansion of renewable energies and the energy transition.

In the view of Mouvement Ecologique, the following measures are central:

1. Electricity from renewable energies must be and remain cheaper than fossil fuels!

1. 1. Electricity pricing through greater public participation in network costs
   2. Gradual increase of the CO₂ tax until 2030
2. The ecological transition must be socially just
3. The state and municipalities have a duty to provide clear rules and collective solutions for a fair energy transition
4. Targeted information campaigns on the energy transition and tips on how to act

The energy transition can only succeed if people are taken along and know that it is fair and efficient.

That is why it is important to set the framework conditions today so that people – but also the economy – have confidence in political decision-making processes and continue to be willing to switch to heat pumps, solar panels and electric cars, among other things, and to redesign their production processes.

The current uncertainty among consumers regarding the development of electricity prices is an obstacle to the energy transition. The instruments used are also currently insufficient.

The state is required to put forward a medium- and long-term strategy that takes into account social criteria and the potential consequences for individual companies or company divisions. This must ensure that the appropriate incentives are in place to promote the switch to renewable energy more consistently and to reduce the consumption of fossil fuels.

The press release is also available as a PDF. in the downloads.

Mouvement Ecologique asbl

20.02.2025