New Luxembourg strategy for the circular economy

Moving towards a circular economy is a strategic priority in Luxembourg. Adopting a circular approach, where goods and services are produced and exchanged based on a circular management of materials that take into account the limits and regenerative capacities of the planet, is crucial in view of the country’s limited resources. The new strategy provides a common vision of the implementation of a circular economy in Luxembourg and offers practical guidelines to citizens, businesses, municipalities and state administrations.

A central link in the value chain

Ministers Turmes, Dieschbourg and Fayot presenting Luxembourg's circular economy strategyThe strategy has been jointly developed by the Ministry of Energy and Spatial Planning, the Ministry of the Economy, the Ministry of the Environment, Climate and Sustainable Development and the Ministry of Finance. “Ever since we carried out a first study in 2014, the Ministry of the Economy has recognised the potential of the circular economy for Luxembourg and the opportunity it represents for companies,” said Minister Franz Fayot when presenting the strategy. “In the meantime, many initiatives have emerged and the circular economy has become a government priority. The objective of the strategy and its planned actions is two-fold: firstly, to accelerate the deployment of the circular economy at the national and regional level, and secondly, to position Luxembourg as a centre of expertise and an international leader in the field.”

The circular economy has become a government priority.

For Carole Dieschbourg, Minister for the Environment, Climate and Sustainable Development, the circular economy is an essential link in the sustainable development value chain: “The rapid expansion of the circular economy is a necessary condition for succeeding with our national strategic efforts to fight the climate crisis, protect resources and promote sustainable finance.”

Rethinking the economy

The government has far-reaching ambitions in the field. “This national strategy will make our society more sustainable by rethinking our entire economy from A to Z,” said Minister for Energy Claude Turmes. “It will provide Luxembourg’s key sectors with a toolbox to bring together public and private players and to develop the vision through concrete projects.”

The circular economy strategy includes three main components:

  • It identifies methods and tools in the fields of regulations and standards, financial aspects (e.g. incentives in the form of subsidies or taxes) and knowledge management (education, training and public research) where the government can act to stimulate innovation, as well as in the area of digitalisation and ICT support;
  • It proposes a methodology to activate processes and tools in key economic sectors through concrete projects piloted by public bodes but implemented together with other main stakeholders;
  • It outlines a mechanism for close and continuous consultation between the ministries in charge of the strategy, as well as communication tools aimed at supporting those managing concrete projects.
Photo: © SIP / Emmanuel Claude

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