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EIO Country Profile 2013 Eco-innovation in Luxembourg

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EIO Country Profile

2013

Eco-innovation in Luxembourg

Eco-innovation in Luxembourg 1

Eco-Innovation Observatory

The Eco-Innovation Observatory functions as a platform for the structured collection and analysis of an extensive range of eco-innovation information, gathered from across the European Union and key economic regions around the globe, providing a much-needed integrated information source on eco-innovation for companies and innovation service providers, as well as providing a solid decision-making basis for policy development.

The Observatory approaches eco-innovation as a persuasive phenomenon present in all economic sectors and therefore relevant for all types of innovation, defining eco-innovation as:

“Eco-innovation is any innovation that reduces the use of natural resources and decreases the release of harmful substances across the whole life-cycle”.

To find out more, visit www.eco-innovation.eu

Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Commission.

Eco-innovation in Luxembourg 2

Eco-Innovation Observatory Country Profile 2013: Luxembourg

Author: Lorena Rivera León

Coordinator of the work package: Technopolis Group Belgium

Eco-innovation in Luxembourg 3

Acknowledgments

The author would like to thank Simone Polfer, representative of the government of the Grand Duchy of Luxembourg, Ministry of Economy, Directorate for New Technologies, for her valuable support in the preparation of this report.

A note to Readers

Any views or opinions expressed in this report are solely those of the authors and do not necessarily reflect the position of the European Union. A number of companies are presented as illustrative examples of eco-innovation in this report. The EIO does not endorse these companies and is not an exhaustive source of information on innovation at the company level.

This brief is available for downloaded from www.eco-innovation.eu/countries

Comments on this brief are welcomed and can be provided at www.eco-innovation.eu/luxembourg

Eco-innovation in Luxembourg 4

Table&of&contents&

Summary .............................................................................................................................................. 5!

1! | Introduction................................................................................................................................... 6!

2! | Eco-innovation performance ....................................................................................................... 7!

3! | Selected eco-innovation areas and new trends......................................................................... 9!

4! | Eco-innovation barriers and drivers in Luxembourg .............................................................. 10!

5! | Eco-innovation policy landscape.............................................................................................. 11!

6! | Good practice examples ............................................................................................................ 12!

Eco-innovation in Luxembourg 5

Summary Compared to 2011, the eco-innovation landscape in Luxembourg is stable. Luxembourg is ranked number 7 in the eco-innovation Scoreboard (Eco-IS) 2013. As it was in the case in all previous editions of the scoreboard, the country has above-average overall performance. This year Luxembourg made a considerable increase in performance in comparison to its 11th position of the Eco-IS 2012.

The Luxembourg Green Party is part of the country’s new government since December 2013. In addition to holding the Secretary of State for Sustainable Development, the Greens are in charge of three Ministries: the Ministry of Mobility, Spatial Planning and Infrastructure; the Ministry of Justice; and the Ministry for Environment and Climate. The Ministers of Mobility and Environment are a part of a “super ministry” of sustainable development which itself is a relevant step for Luxembourg to generate future support for supporting eco-innovation. The new government is planning changes in different areas including energy and climate policy, and bringing energy efficiency to the highest political priority.

The most relevant new eco-innovation trend is the focus in the new government’s programme on the circular economy model as a way of diversifying the economic activities of the country and promoting competitiveness. Other leading eco-innovation areas include the rational use of natural resources, material science, sustainable mobility and sustainable cities and smart technologies. The main eco-innovation drivers of the country are a strong political support and commitment towards eco-innovation and sustainable development, and the need to diversify the economy for economic growth and productivity.

A new President has been elected as the head of the Luxembourg Eco-Innovation Cluster. His election has resulted in a renewed strategy for the cluster with a focus around three themes: mobility, circular economy, and sustainable cities and smart technologies. The strategy also sets specific goals for the period 2014-2020.

Eco-innovation in Luxembourg 6

1 | Introduction

Luxembourg is a small and stable high-income economy and has historically featured solid growth, low inflation and low unemployment. The economic strength of Luxembourg is the consequence of an economic model based on attractive fiscal rates and good infrastructures, which allowed an economic transition from traditional industries to the services sector. Today, Luxembourg’s economy is dominated by services, including banking, insurance, real state and services to businesses. The services sector represents more than 80% of Luxembourg’s GDP.

Its economy depends on foreign and cross-border workers for about 60% of its labour force. As a consequence Luxembourg experiences increased transport flows, mainly by road; and the population growth has put greater pressure for housing, public services and infrastructure.

The country has little natural resources and it imports most of its raw materials and energy. Its economy is particularly exposed to fluctuations in material prices and costs putting high pressure on the national industry. As for most of the EU countries, Luxembourg’s industry is still suffering from the economic crisis as well as increasing competition from emerging countries. In addition, high labour costs contribute to the slow decline of the country’s industrial sector with an increased number of unemployed people with no or low qualifications.

Eco-innovation is seen as a driver to stop the relative decline of the country and to reverse the trend through new business models, skills and new markets.

Eco-innovation in Luxembourg 7

2 | Eco-innovation performance

The analysis in this section is based on the EU28 Eco-innovation scoreboard (Eco-IS) for the year 2013. Eco-IS via its composite Eco-innovation index demonstrates the eco-innovation performance of a country compared with the EU average and with the EU top performers. Eco-IS is based on 16 indicators, which are aggregated into five components: eco-innovation inputs, eco-innovation activities and eco-innovation outputs as well as environmental outcomes and socio-economic outcomes.

Figure 2.1 EU28 Eco-innovation scoreboard 2013, composite index

Source: EIO, 2013

Luxembourg is ranked number 7 in the Eco-IS 2013. As was in the case in previous editions of the scoreboard, the country has above-average overall performance. This year Luxembourg made considerable increases in performance in comparison to its 11th position of the Eco-IS 2012. The country performs well and above average in relation to eco-innovation inputs, eco-innovation outputs, and resource efficiency outcomes and is located below average in eco-innovation activities and particularly on socio-economic outcomes. The country has the best performance in the EU in relation to total R&D personnel and researchers (together with Finland), material productivity (together with Malta) and in exports of products from eco-industries as a percentage of total exports (together with Denmark).

Socio-economic outcomes are the component in which Luxembourg has its worst performance. Even though Luxembourg’s exports of products from eco-industries represent about 70% more of the EU average, the employment and the turnover in eco-industries remains low and represents only a small fraction of the EU average (1% and 13%, respectively). This structure reflects a fast

Eco-innovation in Luxembourg 8

growing outward-looking eco-industry that still only plays a relatively marginal role in the national economy.

Figure 2.2 Components of the eco-innovation composite index for Luxembourg, 2013

Source: EIO, 2013

Total R&D personnel and researchers as a percentage of total employment was at 2.26% in 2012, which is the highest in the EU and largely above the average of 1.2%. In addition, this year the component of eco-innovation inputs reflects better the investments of the private sector on environmental R&D and venture capital. The country is well positioned in the total value of green early investments between 2010-2013, but stills ranks below other EU leaders such as Finland, Ireland, the UK, Sweden and Belgium.

In relation to eco-innovation activities, the country continues to have very low numbers of registered organisations to the ISO 14001 (only 51 per million population in 2012). The size of the country is however an important determinant of these low levels.

Eco-innovation in Luxembourg 9

3 | Selected eco-innovation areas and new trends

The most relevant new eco-innovation trend is the focus in the new government’s programme on the circular economy model as a way to diversifying the economic activities of the country and promoting competitiveness increases. The Ministry of Economy is ordering a study to investigate the current situation in Luxembourg, the economic potential of a circular economy and a strategy to implement such a paradigm shift. The circular economy is seen as a source of competitive advantage as it would lead to an important reduction in waste production and a stronger interdependency from inflowing material streams. Luxembourg wants to position itself as the material hub and service provider with its bordering regions and beyond. Additional support is coming from the Luxembourg Eco-Innovation Cluster, whose new elected President is strongly in favour of a circular economy and declared it to be a priority of the cluster.

There have not been any other major changes in the leading eco-innovation areas in Luxembourg. As it was initially reported in the latest eco-innovation in Luxembourg update in 2012, the eco-technologies Action Plan is oriented towards the development of two strategic priorities: the rationale use of Natural Resources and Material Science. Both continue to be eco-innovation priority areas in Luxembourg. Regarding Material Science, the focus areas include new advanced materials; bio-materials; and materials for sustainable construction. Intelligent design, cradle-to-cradle and life cycle analysis approaches are taken into consideration in view of achieving a reduction of the carbon footprint. With respect to the Rational Use of Natural Resources, the following sectors have been identified as being the most promising for Luxembourg’s economy: biomass conversion to energy by gasification and combustion technologies; sustainable mobility in general; energy storage and smart grid solutions; and small-scale production units for energy generation.

Sustainable Mobility remains a key eco-innovation area in Luxembourg and as a promising sector for the diversification and greening of the economy. In October 2013, the Ministry of Economy and Foreign Trade and the Ministry of Sustainable Development and Infrastructures, together with Sales-Lentz and Volvo Buses signed a Memorandum of Understanding (MoU) on the establishment of Luxembourg as a test arena for a sustainable public transport system. The MoU is based on the testing of Volvo’s plug-in hybrid system for electric public transportation that will be integrated into regular scheduled services as from 2015. The agreement also involves the setup of a charging infrastructure, and the set-up of a Training and Control Centre in Luxembourg. The centre will be specialised in the training of bus operators, as well as of maintenance, safety and rescue personnel. It will also work as an R&D centre and serve as a platform to develop new services in the field of vehicle, fleet and traffic management (Volvo Buses, 2013).

Sustainable cities and smart technologies are eco-innovation areas on the rise. Over the last years there have been supporting projects in Luxembourg to enlarge the technical competences of the country, in order to foster renewable energy and energy storage and the rational use of natural resources (EcoInnovation Cluster, 2014a). Some of the most emblematic examples of these eco-innovations have been described in detail in the good practice database of the eco-innovation observatory1 (i.e. the “Neobuild” Innovation Centre for Sustainable Construction and the Sustainable urbanisation project Schmeltz).

Corporate Social Responsibility continues to be a horizontal priority actively promoted by the government and adopted by a large amount of businesses in Luxemburg. In this regard, most attention is paid to environmental responsibility (Didier, 2014).

1 See here: http://www.eco-innovation.eu/index.php?option=com_labels&view=label&label=luxembourg-&Itemid=160

Eco-innovation in Luxembourg 10

4 | Eco-innovation barriers and drivers in Luxembourg

The main drivers of eco-innovation in Luxembourg are:

• Strong political support and commitment towards eco-innovation and sustainable development. The government has the political will and commitment for making the country a global technology hub for eco-innovation. The objective is to develop and grow in market niches. The entry of the Green Party in power gives additional strength to this sustained effort giving ampler opportunities for the expansion of the market for eco-innovations.

• Strong and comprehensive set of national environmental and innovation laws. These are largely based on European legislation and have been an effective tool for implementing relevant policies and a main driver for the promotion of eco-technologies and eco-innovation.

• Economic diversification is a priority. To lower its dependency on the financial sector, Luxembourg has been trying to diversify its economy for years and is strongly supporting and developing sectors like clean technologies, and promoting new concepts such as the circular economy as a way of increasing competitiveness. Sustainable development in general, and green technologies, eco-innovation and the circular economy in particular, are part of a national plan to diversify the national economy to new promising industries.

• Growing demand for eco-innovation products and services

Some other issues act as barriers but in some cases also as drivers to eco-innovation given the specificities of Luxembourg:

• Geographic location. Luxembourg plays an important role in the greater region, as it is the main economic engine with an important number of commuters and foreign residents. The interdependency of Luxembourg and its geographic neighbours is strong, putting pressure on the demand for housing, services and infrastructures, and to strong transport flows. This leads to rising energy demand, in particular for buildings and transport. All eco-innovations that have a broader impact or that require a holistic approach to development will have to be made in collaboration with the bordering regions, and material flows will need to be coordinated and optimised.

• Small national market for eco-innovations. Luxembourg is a small country with few natural resources and it imports most of its raw materials and energy. Its economy is thus particularly exposed to fluctuations in material prices and costs putting high pressure on the national industry. Because of the small size of the country and the framework conditions and policies in place, the local market is flexible and it makes it a good place to test innovative R&D. Moreover, in order to make innovations expand, innovators need to look beyond the national borders.

Eco-innovation in Luxembourg 11

5 | Eco-innovation policy landscape

The Luxembourg Green Party is part of the country’s new government since December 2013. In addition of holding the Secretary of State for Sustainable Development, the Greens are in charge of three Ministries: the Ministry of Mobility, spatial planning and infrastructure; the Ministry of Justice; and the Ministry for Environment and Climate. The Ministers of Mobility and Environment are a part of a “super ministry” of sustainable development which itself is a very relevant step for Luxembourg in regard of the prospects that it could generate for supporting eco-innovations.

In addition, thriving to strengthen the competitiveness of the country, the government is giving special focus to a circular economy model. The aim of this model is two-fold, reducing the environmental impact of Luxembourg’s industry and raising its competitiveness through innovative business models and cost reductions. The political support for such measures is strengthened by the Green party being part of the government and a Ministry of Economy that has been awarded more competencies and responsibilities after the formation of the new government in late 2013.

The new government is planning changes in different areas including energy and climate policy, bringing energy efficiency to the highest political priority. The government intends to create an ambitious political, legal and financial framework in order to make Luxembourg one of the most energy-efficient economies. In the housing sector, a number of measures are to be implemented to promote the creation of sustainable housing and habitats. The government is planning to set up a financial institution, taking the model of a “climate bank” in order to promote improvements to the energy consumption of old buildings and reduce national energy consumption. In addition, the government continues to support the establishment of the National Green Building Council, which will be a collaborative and exchange platform for all stakeholders in the sustainable construction sector. It will also undertake the establishment of a competence centre dedicated to sustainable construction in order to strengthen research and innovation in the sectors concerned (MyEnergy, 2014).

A new President has been elected at the head of the Luxembourg EcoInnovation Cluster, Roman Poulles. His election has resulted in a renewed strategy for the cluster with a focus around three themes: mobility, the circular economy, and sustainable cities and smart technologies. The strategy also sets specific goals for the period 2014-2020: creating 3000 new jobs, partnering with 300 new companies, creating 1000 business opportunities and 10 new strategic international partnerships. Up to the end of 2013, the cluster had 71 members, out of which 61 are private sector companies and 21 are new members. Among the Flagship projects for 2013, the cluster has adopted a systemic approach to mobility by integrating mobility concepts within a “Smart City” approach; and has commanded a feasibility study on the economic impact and the opportunities of the Circular Economy model, which will be published in June 2014. Moreover, the EcoInnovation Cluster has been involved in several cross-cluster projects in relation to Materials, Automotive Components and ICTs (EcoInnovation Cluster, 2014b).

The Luxembourg Government recently launched the “Luxembourg Future Fund” initiative, jointly with the European Investment Fund (FEI). The goal of this fund is to support the diversification and the sustainable development of the Luxembourg economy by contributing in attracting to Luxembourg, directly or indirectly, entrepreneurial activities that are in an early start-up phase, development or growth phase, or activities that support innovation in general. The target sectors in which the Fund will invest abroad are mainly Cleantech and ICT. It is geared towards European SME companies, and is managed by the experts of the European Investment Fund who also holds a minority stake in the Fund.

Eco-innovation in Luxembourg 12

6 | Good practice examples

The Learning Factory

Based on the “learning-by-doing” concept, the Learning Factory is a new initiative aimed at helping companies in Luxembourg by offering practical training in energy efficiency and optimisation of processes. It is a training infrastructure and provides real insights into resource productivity turning it into competitive advantage. It is an instrument to promote reducing energy inefficiency in industry and SMEs. The project foresees a model factory consisting in a real production system with a production line, an assembly line, operators, back office, etc. This holistic approach to energy efficiency rests upon three interacting pillars: infrastructure management (formal structures, processes and systems used to reach business objectives); operative systems (the way physical assets and resources are configured and optimised to create value and minimise loses); as well as mindsets, capabilities and behaviours (i.e. the way people think, feel and behave in the workplace, both individually and collectively). Examples of course topics include energy efficiency, lean manufacturing and safety mindset.

Application of similar models in other countries and across a broad range of industries has shown that achieving the first 10% of savings is easy; and that improvements of more than 20% can be captured through a combination of operational changes and limited capital investments (Learning Factory, 2013).

Keywords: energy efficiency, learning-by-doing, resource productivity

Internet links: http://www.learningfactory.lu/

Contacts for further information: Jean Schummers, Director. Tel: (+352) 24 55 91 90, Email: [email protected]

Pictures and sources: http://www.learningfactory.lu/

Eco-innovation in Luxembourg 13

The Hollerich Village

Hollerich Village is a 3.6 hectare ex-industrial site in the heart of the city of Luxembourg that aims to offer a high quality of life for residents while reducing their environmental impact. The Schuler Group, a family-owned Luxembourgish company who wants to turn the village into a groundbreaking pilot to demonstrate how sustainable development can be delivered in practice, manages the eco-district. Other partners involved in the project include Polaris Architects Planners, Goblet Lavandier & Associates, the research centre Henri Tudor, nature & emwelt and BioRegional. The overall aim is to create an urban hub that strengthens the local economy and boosts the competitiveness of companies in construction and sustainable development. Construction of the site is still a few years away. However, the Action Plan explains how energy consumption will be reduced and 100% of the heat and 20% of the electricity generated onsite. The remainder will be delivered through an offsite project that Schuler Group is currently investigating. Nature and food-production are a key part of the action plan, which includes uncovering and re-naturalising of a river and a large community garden. The project also considers a partnership with the Centre of Ecological Learning Luxembourg that will bring beehives into the heart of the city of Luxembourg.

Keywords: eco-district, sustainable development, sustainable construction, sustainable cities

Internet links: http://www.hollerichvillage.lu/

Contacts for further information: Schuler Sarl. Tel: (+352) 2630 960, Email: [email protected]

Pictures and sources: http://www.hollerichvillage.lu/

Eco-innovation in Luxembourg 14

Tarkett – innovative and sustainable flooring and sports surface solutions

Tarkett provides integrated and coordinated flooring and sports surface solutions to professionals and end-users. The company has worldwide presence and it employs 150 people in its R&D department, deployed in its international research and innovation centre in Wiltz, Luxembourg and 24 regional centres and application labs in more than 10 countries. In 2011, Tarkett adopted the cradle-to-cradle approach, promoting in particular eco-design with materials that better protect health and the environment. The overall objective of the company is to develop products that could be re-used, at the end of their usage life, in their own production cycle or by other industries. Tarkett has already achieved significant results at each step of the product life: three product ranges have been awarded with cradle-to-cradle certifications; most vinyl products are made from a significant proportion of recycled materials and are all 100% recyclable; water consumption was reduced by 24% between 2010 and 2012, thanks in particular to closed-loop water circuits set up in half of the production sites; and energy consumption was reduced by 5% between 2010 and 2012 because of industrial improvements, including the implementation at some plants of energy production systems using biomass.

Tarkett announced its decision to use phthalate-free plasticisers in its vinyl flooring production in Europe in 2014. These new phthalate-free products have been designed to improve indoor environment and air quality. Tarkett’s Luxembourg site started production of this phthalate-free technology for residential flooring in January 2014 and will do the same for all professional flooring ranges by mid-2014. Tarkett is one of the first companies to join the “Circular Economy 100” Programme launched on February 2012 by the Ellen MacArthur Foundation. This programme aims at creating a network of one hundred companies in order to promote the development of the circular economy model for economic growth. It has also a long-term partnership with the Henri Tudor research centre on Life Cycle Assessment to measure the impact of their products throughout their life and use.

Keywords: sustainable flooring, sustainable construction, eco-design, cradle-to-cradle, circular economy

Internet links: http://www.tarkett.com/en/content/innovation

Contacts for further information: http://www.tarkett.com/en/content/contact

Pictures and sources: http://www.tarkett.com/en/categorie/sustainability-0; http://www.tarkett.com/en/content/innovation

Eco-innovation in Luxembourg 15

References

DIDIER, D. 2014. An Inventory of the Current Situation - Luxembourg on the road towards a more responsible approach. The Standard. Luxembourg.

ECOINNOVATION CLUSTER 2014a. Luxembourg EcoInnovation Cluster Presentation. Luxembourg.

ECOINNOVATION CLUSTER 2014b. A new start to the EcoInnovation Cluster - Turning Innovation into Business, Members Meeting. Luxembourg EcoInnovation Cluster.

LEARNING FACTORY 2013. Learning Factory Capability Centre Luxembourg - Turning resource productivity and lean operations into competitive advantage. Luxembourg.

MYENERGY 2014. MyEnergy Days 2014 - Le salon de la rénovation énérgetique. MyEnergy Luxembourg.

VOLVO BUSES. 2013. Luxembourg test arena for a sustainable public transport system [Online]. Luxembourg. [Accessed 7 May 2014 2014].

Eco-innovation in Luxembourg 16

ANNEX 1. Policy measures addressing eco-innovations in Luxembourg Focus of policy measure (tick if relevant)

Group of policy measures

Type of policy measure

Specific measure Please provide reference to or brief summary of specific measures (national,

regional)

Generic focus on

eco-innovation

Resource efficiency improvem

ent

Energy efficiency improvem

ent

Reduction of emissions incl. CO2

Other relevant

areas (e.g. renewable

energy, etc)

Legal framework for venture capital and private equity companies (SICAR). The law offers a flexible legal framework for private equity and venture capital companies.

X

The non-profit organisation “Luxembourg Private Equity & Venture Capital Association” – www.lpea.lu offers a good insight on how the Luxembourg market is structured.

X Venture capita funds

Structures with a European reach, such as for example Oraxys (www.oraxys.com) have their office in Luxembourg and specialised in investments into clean-technologies and public health and energy.

X

The “Luxembourg Future Fund” initiative X

Equity/business support

Public guarantee funds The Luxembourg State Bank “Société Nationale de Crédit et d’Investissement” www.snci.lu is a public-law banking institution specialized in medium and long term financing of Luxembourg based companies. SNCI’s financing instruments are investments in fixed assets, innovations and exports.

X

The Luxembourg Law on Promotion of Research, Development and Innovation of 5th June 2009, based on Commission Regulation (EC) No. 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation) and the R&D&I Guidelines by the EU Commission (2006/C 323/01) has been prolonged till end of 2014 and will be rewritten in order to be in line with the upcoming new EU regulation on State Aid.

X

Innovation loan provided by the “Société Nationale de Crédit et d’investissement” (SNCI). It is an instrument aimed at co-financing expenditures of R&D projects involving the launch of a new product or service or the development of new manufacturing or commercialisation processes. The innovation loan is an additional instrument to the R&D incentive scheme of the Ministry of the Economy and Foreign Trade.

X

Financial support of the Ministry of Higher Education and Research. It provides funds to R&D projects in public organisations. The priority of the programme is to support public organisations in their R&D projects.

SUPP

LY S

IDE

FOC

US

Support for R&D in public

sector and industry

R&D funding

R&D incentive scheme of the Ministry of Economy and Foreign Trade (RDI Law of 5th June 2009). The objective of the scheme is to co-finance investments of general economic interest in R&D sought by private-sector businesses and research centres to stimulate the development of R&D activities within these organisations. The beneficiaries are industrial undertakings, service providers with a key impact on economic development, and private-sector research centres. It takes the form of an outright grant. Co financing covers fundamental research (up to 100%), applied research (up to 80%) and pre-competitive

X

Eco-innovation in Luxembourg 17

development (up to 60%) depending on the size of the company and whether the company is collaborating with a research institute or not. ERA-Net ECO-Innovera. It funds transnational and multidisciplinary R&D projects considering social, environmental, market and technological issues. The National Research Fund (FNR) has reserved a budget of €500k for the funding of the participation of Luxembourg-based researchers from the public research institutions. The first joint call (deadline September 2011) focuses on resource efficiency as a main driver of eco-innovation including new business models and systemic approaches addressing paradigm change, sustainable industrial processes and products, and recycling and waste re-use.

X X X X X

Collaborative grants FNR CORE Thematic Programme. The aim of the programme is to foster scientific quality in areas of socio-economic relevance. There are only six relevance themes for funding. Two are relevant for eco-innovation: sustainable resource management; and new functional and intelligent materials and surfaces, and new sensing applications. The calls for proposals are addressed to public institutions; Luxembourg administrations and public establishments authorised to undertake R&D activities or technology transfer in their respective fields of activity.

X X

A new University Campus is built in the south of Luxembourg in Esch-Belval (www.fonds-belval.lu). The Government is investing more than 1 billion Euros in this campus. It is built on former industrial grounds where the government has to tackle the challenge of decontamination of partially polluted grounds. Many eco-innovations flow into this project. Recently a study has been performed commissioned by the Fonds-Belval to investigate the potential for renewable energy in the urban context at Esch-Belval.

X

R&D infrastructure

The two main public research centres Gabriel Lippman (www.lippmann.lu) and Tudor (www.tudor.lu) are being merged into a single Luxembourg Institute of Science and Technology allowing synergies between departments focusing on eco-innovations.

X

Tax incentives for R&D and start-ups

Comprehensive support for start-ups and development is provided by the “Business Portail” (www.guichet.lu)

X Fiscal measures

Tax incentives for R&D personnel

Tailored training courses for companies, entrepreneurs

Training classes are organised by the « Institut national pour le développement de la formation professionnelle continue » http://www.infpc.lu/INFPC/Article/Accueil/fr; by the Chamber of Crafts www.cdm.lu and the “Luxembourg School for Commerce (LSC)“- http://www.lsc.lu/

X

Technoport – enterprise and innovation centre. The Luxembourg government created the centre in order to diversify the range of support services on offer to innovative businesses in Luxembourg. The mission of Technoport is to support promoters of innovative projects at the idea stage and to provide ongoing assistance up to the start-up phase; as well as to provide temporary accommodation for domestic and foreign businesses at the development stage seeking a temporary foothold in Luxembourg. – www.technoport.lu

X

Education, training and

mobility

Advise/consulting for start ups, companies,

entrepreneurs

Within the Technoport, a fabrication lab has been put into place in order to offer X

Eco-innovation in Luxembourg 18

companies an open prototyping platform where knowledge sharing is essential. Tools such as 3D printers, CNC milling machines, laser cutter or a vinyl cutter as well as technical and logistical assistance are available to facilitate invention but equal emphasis is put on fostering a multidisciplinary and intergenerational dynamic between start-ups, artists, designers, architects, engineers, hobbyists, researchers, students and so on.

The Luxembourg Government recently launched the “Learning Factory” (www.learningfactory.lu) turning resource productivity and lean operations into competitive advantage.

X X

Placement schemes for students

Since Luxembourg is a multicultural country with nearly 50% of foreigners living in the country and nearly 70% of foreigners being part of the workforce, there exist multiple relations with universities, research institutions, companies and public institutions promoting placement schemes for students abroad and in Luxembourg.

X

ATTRACT Programme. The aim of the programme is on building on the excellence, dynamism and creativity of research in Luxembourg by attracting young researchers with a high level of ability in science or technology and proven experience in a professional research context. The fields of research targeted are those prioritised by public-sector research bodies in Luxembourg. The programme is designed for researchers not yet established in Luxembourg; It offers researchers the opportunity to set up a research team within a public-sector research institution in Luxembourg.

Support for R&D workers recruitments

National Research Training Grant Scheme. The scheme supports PhD and postdoctoral research training in Luxembourg and abroad. It aims at developing human resources in priority research areas in the country. The National Research Fund (FNR) manages the scheme. Grants are awarded for a period of between 3 and 4 years.

Competence centres, clusters, science-technology parks

The Eco-Innovation Cluster www.ecoinnovation.lu is part of the Clusters Programme launched by the Ministry of the Economy and Foreign Trade in 2002. It is an active network that supports actors of the clean-technologies sector in Luxembourg with the goal of creating and developing new and sustainable business opportunities through collaborative R&D and innovation projects. It is one of the key elements of the Eco-technologies Action Plan of Luxembourg, launched in February 2009. The cluster covers many different areas such as eco-construction and eco-materials; eco-design and eco-conception; the rational use of energy; and renewable energies. A special focus is geared towards the concept of the “circular economy”, “smart mobility” concepts and sustainable construction.

X X X X X

The National Agency for Innovation “Luxinnovation” (www.luxinnovation.lu) offers a wide range of integrated and personalised services, which are based on a sectoral approach and provided free of charge to businesses of any size, to innovative start-ups and to public research organisation It coordinates the Luxembourg Cluster Initiative www.clusters.lu and helps companies understand the European and National State Aid Regimes.

X X X X X

Networks and partnerships

Technology platforms and innovation networks

The public research institutes offer technology platforms too (www.lippmann.lu, www.tudor.lu, www.uni.lu, www.ceps.lu, www.crp-sante.lu).

Eco-innovation in Luxembourg 19

The Centre virtuel de la Connaissance sur l’Europe »- http://www.cvce.eu/; the « Centre d’études européennes Robert Schuman » http://www.cere.public.lu/fr/index.html; and the « Institut d’Études européennes et internationales » http://www.ieis.lu/ are different platforms offering important services to the general public in Luxembourg and abroad.

Foresight and common vision building

The Luxembourg Foresight Exercise was a participative process undertaken by the Luxembourg “Fonds national de la recherche” (FNR) in 2006-2007. The Foresight Exercise aimed at identifying national research priorities in the public sector with socio-economic interest for Luxembourg society. It was based on a close involvement of stakeholders from the research community, society, and the economy of Luxembourg as well as a number of international experts.

X

Market intelligence and other forms of

information sharing

The Ministry of Economy runs the “Observatoire de la Compétitivité” http://www.odc.public.lu/ delivering on a regular basis the most recent figures on the competitiveness of the Luxembourg economy in comparison with other countries. The national statistics portal www.statec.lu is also a very open and transparent portal where information of all sectors and topics are freely accessible to companies and people.

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Regulations, targets, cap & trade schemes

The Air Quality Plan for Luxembourg City. The main objective is to restrict exceeding the nitrogen oxide (NOx) limits in the city centre of Luxembourg. Some of the measures proposed include an accelerated renewal of the city bus fleet, the creation of a tramway, and the prohibition of trucks in certain critical sectors of the city.

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Regulations and standards

Performance standards, labeling, certification

The Government has given the responsibility to the “L’Institut Luxembourgeois de la Normalisation, de l’Accréditation, de la Sécurité et qualité des produits et services “ www.ilnas.lu to care about performance standards, labelling and certification.

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“Green“ public procurement of goods

and services

A study has been launched by the Ministry of Economy to investigate this topic. It will be published in 2014 and actions will be taken in this area by the administrations.

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R&D procurement Public procurement

Pre-commercial procurement

A study has been launched by the Ministry of Economy to investigate this topic. It will be published in 2014 and actions will be taken in this area by the administrations.

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Advisory support for technology adopters

This task is mainly covered by the public research institutions such as www.tudor.lu and www.lippmann.lu and special departments such as www.veille.lu or www.brevet.lu, a web portal dedicated to intellectual property and technology watch.

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Technology Transfer

Financial or fiscal support for technology

adopters (e.g. grants for purchasing new

technology)

Aid for environmental protection and the rational use of energy in artisanal and commercial SMEs. The subsidy aims to encourage and support the investment in environmental protection and the rational use of natural resources. It finances all investments that allow SMEs to meet EU environmental standards for a period of three years from the adoption of these standards; all other investments directed to produce energy savings, renewable energies, or the combined production of energy and heat; and all expenses incurred by SMEs when using external consulting with the objective of making progress in the field of

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Eco-innovation in Luxembourg 20

environmental protection and the rational use of natural resources.

Aid for the investment in environmental protection and the rational use of natural resources. Same as above, but focusing on all types of enterprises. It concerns all investments in the field of environmental technologies or environmentally friendly processes (compliance with EU norms, investments in energy savings, co-generation of renewable energy sources, energy production from renewable energies, and environmental studies).

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Tax incentives for consumers (e.g. for

purchasing environmentally efficient

products)

Tax reductions for products and services (e.g. VAT reductions)

PRIMe CAR-e. As part of the promotion of cars with low CO2 emissions the Luxembourg government offers the buyer of a new car (registered in Luxembourg) a subsidy related to the amount of CO2 emissions of 750 Euros, 1500 Euros or 3000 Euros.

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PRIMe CAR-e plus. Financial subsidy for individuals and enterprises to purchase a low CO2 emissions car associated with the substitution of an old car of more than 10 years. The amount of the subsidy depends on the CO2 emissions of the new car, and can be of 1500 Euros or 1750 Euros.

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PRIMe Cool. Financial grants of between €100 and €150 for the promotion of electrical appliances and refrigerators at low energy consumption (A++)

X Demand subsidies (e.g. eco-vouchers, consumer

subsidies) PRIMe House. Financial grants for individuals targeting energy saving measures and the use of renewable energies in the housing sector. The grants can reach €15k for low energy houses, or up to €40k for passive houses with technical equipment such as heating pumps and solar and thermal installations. Grants are also available for encouraging clean energies in exiting buildings older than 10 years, where the potential energy savings are particularly important. The scheme also encourages the use of solar and thermal heating pumps, boilers that run on pallets and wood chips, and the replacement of low-efficiency boilers.

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Support of private demand

Awareness raising and information provision

About the Eco-Innovation Observatory (EIO)

The Eco-Innovation Observatory (EIO) is an initiative financed by the European Commission’s Directorate-General for the Environment. Since 2009 the Observatory has been developing an integrated information hub on eco-innovation addressed to business, policy makers, innovation service providers and researchers. The EIO supports the implementation of the European Eco-Innovation Action Plan of the European Commission.

Visit our website and get full, free access to the EIO’s reports and databases.

www.eco-innovation.eu