Eco-innovationinLuxembourg

EIOCountryProfile

2014-2015

Eco-InnovationObservatory

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 theEuropean Union and key economic regions around the globe, providing a much-neededintegrated information source on eco-innovation for companies and innovation serviceproviders,aswellasprovidingasoliddecision-makingbasisforpolicydevelopment.

The Observatory approaches eco-innovation as a persuasive phenomenon present in alleconomicsectorsandthereforerelevantforalltypesofinnovation,definingeco-innovationas:

“Eco-innovation isany innovationthatreducestheuseofnaturalresourcesanddecreasesthereleaseofharmfulsubstancesacrossthewholelife-cycle”.

Tofindoutmore,visitwww.eco-innovation.euandec.europa.eu/environment/ecoap

Any views or opinions expressed in this report are solely those of the authors and do notnecessarilyreflectthepositionoftheEuropeanCommission.

Eco-InnovationObservatoryCountryProfile2014-2015:Luxembourg

Coordinatoroftheworkpackage:TechnopolisGroupBelgium

Acknowledgments

Thisdocumenthasbeenpreparedwith thesupportof therepresentativesof theLuxembourgstateauthorities,namely:

• SimonePolfer–MinistryofEconomy,DirectorateforResearchandInnovation

• ChristianTock–MinistryofEconomy,DirectorateforSustainableTechnologies

AnotetoReaders

Any views or opinions expressed in this report are solely those of the authors and do notnecessarilyreflectthepositionoftheEuropeanUnion.Anumberofcompaniesarepresentedasillustrativeexamplesofeco-innovationinthisreport.TheEIOdoesnotendorsethesecompaniesandisnotanexhaustivesourceofinformationoninnovationatthecompanylevel.

This brief is available for downloaded from

https://ec.europa.eu/environment/ecoap/luxembourg

Tableofcontents

Summary...........................................................................................................................1

Introduction.......................................................................................................................2

1 |Eco-innovationperformance............................................................................3

2 |Selectedcirculareconomyandeco-innovationareasandnewtrends..............6

3 | Barriers and drivers to circular economy and eco-innovation inLuxembourg.....................................................................................................................11

4 |Policylandscape:towardscirculareconomyinLuxembourg...........................12

ANNEX: Policy measures addressing circular economy and eco-innovations inLuxembourg.....................................................................................................................18

1

Summary

In2015,eco-innovationandthecirculareconomyarefirmlyontheagendainLuxembourgandon the rise compared to previous years. The country is ranked third in the Eco-InnovationScoreboard (Eco-IS), and continues its significant progress in this domain. In 2012 and 2013,Luxembourgwasranked11thandseventhrespectively.

This positive progression was initiated under the leadership of the Luxembourg Green Party,which has been part of the country’s government since December 2013, and that of theLuxembourgEco-InnovationCluster.Thelatterworkscloselywiththegovernmentonpromotingthecirculareconomy,afocusthathasbeenreinforcedsincetheelectionofitscurrentpresidentafewyearsago.

TheSecretaryofState forSustainableDevelopment isalsoamemberof theGreenParty.Theparty is in charge of three ministries: the Ministry of Mobility, Spatial Planning andInfrastructure, the Ministry of Justice, and the Ministry for Environment and Climate. TheMinistersofMobility andEnvironment arepartof a “superministry” in chargeof sustainabledevelopment policies and initiatives which is a significant step for Luxembourg in generatingfuturesupportforpromotingeco-innovation.

Themost relevant eco-innovation trend over the past few years has been the focus of thegovernmentonthecirculareconomymodelasawayofdiversifyingtheeconomicactivitiesofthe country and promoting competitiveness. This view was further reinforced with thepublicationin2014ofastudybytheMinistryofEconomyassessingthebenefitstobeexpectedfrom a transition towards amore circular economy. In addition, in 2015, an inter-ministerialcommittee was created under the leadership of the State Secretary to bring together publicactorsandtoincreasecrossoverandconsensusaboutthecirculareconomy.

Other leading eco-innovation areas include the rational use of natural resources, materialscience,sustainablemobility,sustainablecitiesandcorporateandsocialresponsibility.Themaineco-innovationdriversofthecountryincludestrongpoliticalsupportandcommitmenttowardseco-innovationandsustainabledevelopment,andtherecognisedneedtodiversifytheeconomyforeconomicgrowthandproductivity.

InadditiontotheEco-InnovationClustermentionedabove,otherkeysupportedareas includemobility,sustainablecitiesandsmarttechnologies.

2

Introduction

Luxembourg is a small and stable high-income economy and has historically featured solidgrowth, lowinflationand lowunemployment.TheeconomicstrengthofLuxembourgreliesonaneconomicmodelbasedonattractivefiscalratesandgoodinfrastructure,whichhasenabledaneconomic transition fromtraditional industries to theservicessector.Today,Luxembourg’seconomy is dominated by services, including banking, insurance, real estate and services tobusinesses.In2015,theservicessectorrepresented87.7%ofthecountry’sGDP,and80%ofitsexports.

The economy is dependent on cross-border workers (primarily from Belgium, France, andGermany)forabout44%ofitslabourforce.Itshouldalsobenotedthat71%ofthelabourforcedoes not have Luxembourg nationality. As a consequence, Luxembourg has experiencedincreasedtransportflows,mainlybyroad,andthepopulationgrowthhasputgreaterpressureonhousing,publicservicesandinfrastructure.

The country has little natural resources and imports most of its raw materials and energysources.Consequently,itseconomyisparticularlyexposedtofluctuationsinmaterialpricesandcosts, putting pressure on the country’s industry. As for most European Union countries,Luxembourg’s industry is still suffering from the economic crisis, as well as increasingcompetition from emerging countries. In addition, high labour costs contribute to the slowdecline of the country’s industrial sector, and there is an increased number of unemployedpeoplewithnoorlowqualifications.

With the above in mind, eco-innovation is seen as a significant driver to stop the relativeeconomic decline of the country and to reverse the trend, through adapting new businessmodels,developingnewskillsandmarketsand increasing thecompetitivenessofLuxembourgcompanies.

3

1 |Eco-innovationperformance

TheanalysisinthissectionisbasedontheEU-28Eco-innovationscoreboard(Eco-IS)fortheyear2015.ViaitscompositeEco-innovationindex,producedbytheEco-InnovationObservatory(EIO),Eco-IS demonstrates the eco-innovation performance of a country compared with the EUaverageandwiththeEUtopperformers.Eco-IS isbasedon16 indicators,aggregatedintofivecomponents: eco-innovation inputs, activities and outputs, environmental and socio-economicoutcomes.

Figure1EU-28Eco-InnovationScoreboard2015,compositeindex

Source:EIO,2016

LuxembourgisrankedthirdintheEco-IS2015,whichisaconsiderableprogressioncomparedtoprevious years – the country was ranked 11th in 2011 and seventh in 2013. LuxembourgperformsabovetheEUaverageinresourceefficiencyoutcomesandsocio-economicoutcomes.Asin2013,thisperformanceisparticularlydrivenbyitstoprankinginmaterialproductivity–onanequalfootingwiththeNetherlands–andinexportsofproductsfromeco-industries–onanequal footingwithGermany. Luxembourg alsoperforms significantly above theEUaverage ineco-innovation outputs. In particular, it is ranked first for both eco-innovation-relatedpublicationsandeco-innovation-relatedmediacoverage–onanequalfootingwithFinlandandItalyrespectively.ItsperformanceisinlinewiththeEUaverageineco-innovationinputs,whilein2013LuxembourgperformedsignificantlyaboveEUaverageinthiscategoryofindicators.

4

Figure2Componentsoftheeco-innovationcompositeindexforLuxembourg2015

Source:EIO,2016

Eco-innovationinputs

Luxembourg’sperformanceineco-innovationinputsisinlinewithEUaverage,withanaverageindex of 103 against 100, positioning the country ninth in the EU. This result is driven byexcellent performance in R&D personnel and researchers, which represents 2.06% of totalemployment in2014.ThisputsLuxembourg justbehindDenmarkandFinland,withashareof2.11%. The overall performance is also significantly lower than in 2013, when the countryachieved a score of 142. Generally speaking, it should be noted that as a small country,Luxembourg often presents fluctuating values for a range of indicators, not only for eco-innovation inputs.A change ingovernmentbudgetoutlays immediately impacts the country’sscoresandcanpartlyexplainobservedchangesfromoneyeartoanother.

Eco-innovationactivities

Luxembourg ranks 14th on this indicator, with a score of 115, above the EU average andsignificantlyaboveits2013performance(score87).Thecountry’saveragescoreissignificantlyreduced by the low number of ISO14001 registered organisations. With only 70 registeredorganisations, this is in absolute value the third weakest performance in the EU, with onlyCroatia and Malta scoring lower. However, compared to the population of the country,Luxembourg is ranked 20th, above France and Germany. ISO14001 is mainly used in theconstruction sector in Luxembourg. When the government implements awareness-raisingevents,forexampleonthepromotionoftheISO14001norm,itmanagestoreachallcompaniesacrossLuxembourg,thankstothesmallsizeofthecountry,andcanmoreeffectivelyencouragecompaniestocommittosuchinitiatives.Itismoredifficult,however,tomaintainthistrendover

5

the years ahead. A reasonable assumption would be that firms interested in being certifiedwouldhavealreadydoneso.Dataregardingfirmsthathaveimplementedinnovationactivitiesaimingtoreducematerialandenergyinputperunitofoutputhavenotchangedsince2008.ThecountryperformsaboveEUaverage,howeverdata isnotavailable foranumberofcountries,suchasDenmark,theUnitedKingdomandSpain.

Eco-innovationoutputs

Luxembourgtopstherankingforeco-innovationoutputs,withascoreof205,morethantwicethe EU average and significantly higher than in 2013, when it achieved a score of 121. Thecountry is ranked first for both eco-innovation-related publications and for eco-innovation-relatedmediacoverage,onanequalfootingwithFinlandinthefirstcaseandwithItaly inthesecond. Although the absolute number of eco-innovation publications is among the lowest intheEU,Luxembourgisstillthemostactivecountrywhenconsideringthenumberofinhabitants.

Luxembourg also performs above the EU average for eco-innovation-related patents, despiteonly13suchpatentsbeingregistered inLuxembourg in2012,comparedto251 inAustria thesameyear. Basedonacalculationofabsolutevaluescomparedtothesizeof thepopulation,the two countries achieve results of the same order, and Austria is ranked only just beforeLuxembourg.

Resourceefficiencyoutcomes

Luxembourgtopstherankingforresourceefficiencyoutcomes,beforetheUnitedKingdomandthe Netherlands, with an average score of 131, close to its 2013 score (129). Luxembourg isranked first in material productivity at €3.29 of GDP per kilogramme of domestic materialconsumption (EUR/kg) compared to the EU average of 1.93 EUR/kg. Luxembourg performs inline with the EU average regarding energy productivity, with €8.61 of GDP per tonne of oilequivalent (EUR/toe), where the EU average is 8.34 EUR/toe. Its greenhouse gas (GHG)emissionsintensitystandsat0.30CO2equivalentpereuroofGDP,lowerthantheEUaverageat0.35buthigherthanthebestperformers,SwedenandFrance(0.27).Finally,waterproductivitydatahasnotchangedsincethelastreport,LuxembourgbeingrankedthirdafterIrelandandtheUnitedKingdom.

Socio-economicoutcomes

Luxembourgagaintopstherankingforsocio-economicoutcomes.Theresultisdrivenbyexportsofproductsfromeco-industries.In2014,theyamountedto€147million,translatinginto0.99%oftotalexports,muchlikeinGermany,comparedto0.67%onaverageintheEU.Employmentineco-industrieswas0.37%of total employmentacrossall companies,below theEUaverageat2.52%. However, national data based on STATEC indicate that in 2012, 2.5% of people wereemployedintheenvironmentalgoodsandservicessector(MinistryofEconomy,2015).Revenueineco-industriesin2014was0.39%oftotalrevenueacrossallcompanies,belowtheEUaverageat2.19%.

6

2 |Selectedcirculareconomyandeco-innovationareasandnewtrends

Efforts topromoteeco-innovationand thecirculareconomy in Luxembourgaremostly ledbypublic-private partnerships and structured around the Luxembourg Eco-Innovation Cluster,LuxInnovation(thenationalagencyforinnovationandresearch),theMinistryofEconomy,theMinistryofSustainableDevelopmentandInfrastructureandtheINTERREGNorthWestEurope(NEW)programmethatthelatterpromotes.

The Eco-Innovation Cluster gathers companies, research institutes and public organisationsinvolved in the field of eco-technologies, with the objective of creating and developing newsustainableopportunitiesthroughcollaborativeR&Dandinnovationprojectsinthefieldsofthecircular economy, eco-construction and eco-materials, renewable and alternative energies(biomass, biogas, photovoltaics, etc.), eco-design and eco-conception, and rational use ofenergy. Itsactivitiesalsoenableawareness-raisingontheopportunitiesofferedbythecirculareconomy.

LuxInnovation accompanies companies and researchers in developing and the implementinginnovative projects and supports the government in its innovation and R&D policies. It is anetworkofreferenceintheEUregardingR&DandinnovationandrepresentstheLuxembourgcontact point for the European Horizon 2020 programme. Its main focus areas include eco-technologies,materialsandproductiontechnologies.

The INTERREG North West Europe programme is a transnational European TerritorialCooperation Programme funded by the European Commission and involving Luxembourg,Ireland, the United-Kingdom, Belgium, Switzerland and parts of France, Germany and theNetherlands.TheprogrammeaimsatreinforcingterritorialcohesionacrossNorthWestEuroperegionsbyreducingdiscrepancies,promotinginnovation,reducingCO2emissionsandfosteringan efficient use of resources and rawmaterials. It is run under the framework of the Europe2020strategypromotingsmart,sustainableandinclusivegrowth1.

LeadinginnovativeareasinLuxembourghavebeenstablesince2013.Howevertherehasbeenanoticeableriseinattentiongiventothecirculareconomyandrelatedinitiatives.Overthepastfew years, focus on the circular economy has been reinforced, in linewith the government’scommitmentinDecember2013tofurtherencouragethedevelopmentofacirculareconomyinLuxembourg as a lever for competitiveness. The circular economy model is viewed as anopportunityforLuxembourgtodiversifytheeconomicactivitiesofthecountryandtoenhancecompanies’ competitiveness. Luxembourg wants to position itself as the material hub andserviceproviderwithitsborderingregionsandbeyond.

The Ministry of Economy, LuxInnovation and the Luxembourg Eco-Innovation Cluster closelyworktogetheronthepromotionofamorecirculareconomy.In2015,LuxInnovationcreatedanew support scheme – “Fit4Circular” – to help small and medium-sized enterprises (SMEs)

1Forfurther information,pleasevisit:http://www.fonds-europeens.public.lu/fr/programmes/interreg/interreg-nwe-2014-2020/index.html

7

transition towards a more circular economy (box 2.1). The President of the Eco-InnovationCluster, Roman Poulles, heads the strategy of the cluster, focusing on the following themes:mobility,thecirculareconomy,andsustainablecitiesandsmarttechnologies.Thestrategyalsosetsspecificgoalsfortheperiod2014-2020:creating3,000newjobs,partneringwith300newcompanies, creating 1,000 business opportunities and 10 new strategic internationalpartnerships. The cluster’s 2015 flagship projects include 22 circular economy demonstrationprojects,suchasaneco-businesspark,reverselogisticsorextendedlife-cycleassessment(LCA).In2015,theclusteralsoorganisedabusinesschallengeforteenagersfocussingoninventingacircular loop foreveryday lifeproducts to raise theirawareness (seebox2.2). Inaddition, the2015 agenda encouraged international cooperation and good practices, with the visit to theResource2015conferenceinLondonaimedathelpingbusinessestakestepstowardsresourceefficiencyandthecirculareconomy,aswellasthevisittothe“Assisesdel’économiecirculaire”inParisseekingtodevelopastate-of-the-artcirculareconomyinEurope.

The rational use of natural resources and material science are still strategic priorities inLuxembourg.Regardingmaterialscience,thefocusareasincludenewadvancedmaterials,bio-materialsandmaterialsforsustainableconstruction.Intelligentdesign,cradle-to-cradleandlife-cycle analysis approaches are taken into consideration, with a view to achieving a reducedcarbon footprint.With respect to the rational use of natural resources, the following sectorshavebeenidentifiedasbeingthemostpromisingforLuxembourg’seconomy:

• Biomassconversiontoenergybygasificationandcombustiontechnologies• Sustainablemobility• Energystorageandsmartgridsolutions• Small-scaleproductionunitsforenergygeneration.

Inaddition,theGovernmentencouragescompaniestouselessnaturalresources,tousethemmoreefficientlyandtoinvestmoreincleantechnologies.Toworktowardsthisgoal,alearningfactory(box2.3)hasbeensetupbyapublic-privatepartnershipforcompaniestolearnhowtoimprovetheirenergyperformance,productivityandorganisationandtotraintheiremployeesongreenpractices.

Low-carbon, sustainablemobility remains a key eco-innovation priority in Luxembourg and apromisingsectortofurtherdevelopthediversificationandgreeningoftheeconomythroughtheexperimentationofnewinnovativesolutionsinasmallandintegratedenvironment.InOctober2013,theMinistryofEconomyandForeignTradeandtheMinistryofSustainableDevelopmentand Infrastructures, together with Sales-Lentz and Volvo Buses, signed a Memorandum ofUnderstanding (MoU) on the establishment of Luxembourg as a test arena for a sustainablepublic transport system.TheMoU isbasedon the testingofVolvo’splug-inhybridsystemforelectricpublic transportation,whichhasbeen integrated into regular scheduledservices since2015.Thecentreisspecialisedinthetrainingofbusoperators,maintenance,safetyandrescuepersonnel. ItalsoworksasanR&Dcentreandservesasaplatformtodevelopnewservicesinthefieldofvehicle,fleetandtrafficmanagement(VolvoBuses,2013).

Luxembourgconsidersitselfasa“livinglaboratory”forsmartmobility.Itssmallsizeenablesittoexperimentwithnew services for themobilityofpeopleandgoods (freight), usingnewcleantechnologiesandthe InternetofThings.GiventherelianceofLuxembourgonforeignworkerscommuting to Luxembourg on a daily basis (estimated at around 170,000 per day), it is

8

important thatcommuting iscomfortableandconvenient inorder forLuxembourgcompaniestoremainattractiveandtomaintaintheeconomicactivityofthecountry.Toworktowardsthisobjective,newtrainstationshavebeenbuilt.1,400kmofbicyclepathsand850electricchargingpointsforcarswillbedevelopedby2020.Chargingpointswillnotablybeinstalledincompanycarparks.Userswillbeabletochoosetheirelectricitysupplierthroughanonlineplatformwiththe possibility to select green electricity suppliers. Finally, new tax abatements have beendecidedfor2016toencouragepeopleandcompaniestousemoreelectriccarsandbikes.

Sustainablecitiesandsmarttechnologiesareeco-innovationareasontherise. Inthelastfewyears,projectshavebeendevelopedtoenlargeLuxembourg’stechnicalcompetences, inordertofosterrenewableenergyandenergystorageandtherationaluseofnaturalresources(Eco-Innovation Cluster, 2014). In particular, households are being equipped with smart meteringsystems.By2019,itisexpectedthatmorethan90%ofhouseholdswillbenefitfromthissystemforelectricityandgas,andsmartmeteringsystemsforwaterconsumptionwillbeaddedlateraswell. Those smart metering systems enable more precise measurement and monitoring ofelectricityandgasconsumptionandproduction,tothenearestquarterofanhour.

CorporateSocialResponsibility(CSR)continuestobeaprioritythatisactivelypromotedbythegovernment and associations and adopted by an increased number of businesses inLuxembourg.CompanieshaveadoubleincentivetocommittoimprovetheirCSRcommitments.TheyconsiderCSRtoleadtobothimprovedbrandimageandeconomicbenefits.Companiesareaccompaniedintheircommitmenttoreportingofenvironmental,socialandsocietalimpactsbyseveral organisations such as IMS and INDR. IMS (Inspiring More Sustainability”) is anassociationencouragingcompaniestoplaceCSRresponsibilityattheheartoftheirstrategy.Towork towards this aim, IMS carries out awareness-raising communication campaigns andtraining, animates a CSRnetwork to engage stakeholders and foster innovation, andprovidesexpertise to propose concrete solutions for companies to improve their environmental, socialand societal impacts2. The INDR (Institut national pour le développement durable et laresponsabilitésocialedesentreprises–National Institute for thesustainabledevelopmentandsocialresponsibilityofbusinesses)wasfoundedbytheUnionofLuxembourgCompanies(Uniondes Entreprises Luxembourgeoises – UEL) to help companies be more competitive andsustainable3.TheINDRpromotessustainabilityandoffersanonlineplatformwherecompaniescanshareexperienceandbestpractices.

Fit4Circularity

Fit4Circularity is a new support scheme created in 2015 byLuxInnovation and targeting SMEs, following the Fit4DigitalandFit4Innovationinitiatives.

Fit4Circularity isdedicatedtohelpingSMEsthatarewillingtomake a more substantial commitment to sustainable development practices and toimplementacirculareconomyapproach.Theobjectivesaretolimittheuseofrawmaterials,

2IMSwebsite:http://imslux.lu/3INDRwebsite:http://indr.lu/

9

maximise the use of renewable sources, develop innovative products and services forsustainablegrowth,reduceenergyconsumptionandincreaserecyclability.

LuxInnovation, the Innovation Agency of Luxembourg, alongwith external consultants, willhelp SMEs apply for the scheme and implement their projects. Expected results of theFit4Circularity scheme are improved competitiveness and increased revenues for SMEs.Differentkindsofprojectscanbeeligibleforsupport:technologicalinnovation,organisationalinnovationandinvestment.

Keywords:circulareconomy,competitiveness,innovation

Source:http://en.luxinnovation.lu/News/Archives/Renforcer-sa-compétitivité-grâce-à-l’économie-circulaire

Contacts: Mr. Jean-Michel Ludwig, Head of Department Start-up Creation & SMEPerformance,LuxInnovation–jean-michel.ludwig@luxinnovation.lu/Tel.+352436263667

InnovationCampforyouth

Thisinitiativewasjointlyorganisedon12November2015bytheEco-InnovationClusterandthe non-profit association, Jonk EntrepreneurenLuxembourg, which gathers school and businessrepresentatives to promote the entrepreneurialspiritwithin education in Luxembourg. The campgatheredteenagersaged16to19andwasaimedat raising their awareness on the circulareconomy.

The business challenge that teenagers had tosolvewas the following: Each teamwasgivenanobject of everyday life and had to imagine asecondorathirdlifeforthem,takingthemoutoftheirlinearlifecycleandintegratingthemintoacircularloop.

It is particularly important to implicate the youth in such initiatives in order to raise theirawarenesstotherealityoffiniteresourcesandthenecessitytochangeconsumerbehaviour,sothatthenewgenerationismoreresponsibletowardstheenvironment.

Thefirstprizewaswonbyaprojectreinventingheadphones.Theteamimaginedheadphonesmade out of natural and recyclable materials and powered by the pulse of ears andpiezoelectricfibres.

Key words: circular economy, circular loop, linear life cycle, consuming behaviour, finiteresources.

(photo)Winnersofthecirculareconomychallenge

Source(incl.picture):http://jonk-entrepreneuren.lu/2015/11/le-9e-innovation-camp-avec-le-cluster-ecoinnovation-leconomie-circulaire/

10

LearningFactory

The Learning Factory was been set up in 2013-2014byajointventureincludingtheLuxembourgGovernment,theChamberofCommerce,theFedilBusiness Federation of Luxembourg,ArcelorMittal, Schneider Electric, Enovos Creos,

Sudstroum and the city of Esch. This project represents an investment of more than€2million.

TheLearningFactorywasestablishedasanexperimentalandsafe learningenvironment forbusinessestolearnhowtoimprovetheirenergyperformance,productivityandorganisationaswellastheskillsoftheiremployees.Thefactoryincludesexercisesrelatedtotheprocessesandequipmentinvolvedinmakingicedtea,sincethepreparationofthisdrinkaresimilartothosefoundinmanyotherfactories.Employeesintrainingcanpracticeonarealproductionline with optimised tools and under the supervision of experienced trainers. After thetraining, they canmore easily apply themethods and practices at their own facilities andprocessestoreduceenergyconsumptionandoperatingcosts.

Companies are interested in the Learning Factory because it enables them to achievesubstantialeconomicandenvironmentalbenefits.

Although the initiative mainly targets industries, other companies and administrations arealso welcome to use the factory since additional “lean-six-sigma” training sessions, acollaborativemethodology to improveperformanceand removewaste, areoffered tohelpcompanies from the services sector – such as banks or administrations – optimise theiroperationsandreducecosts.

Keywords:energyperformance,productivity,economicandenvironmentalbenefits

Source:www.learningfactory.lu

Contact:Ms.ClémentineHyeulle–info@learningfactory.lu/Tel.+35224559190

11

3 |Barriersanddriverstocirculareconomyandeco-innovationinLuxembourg

Themaindriversof eco-innovation in Luxembourghavenot changed fundamentally since thelast report.Howeveragrowinganddistinctattention ispaid to thecirculareconomyconceptcompared toa fewyearsagoandbusinessesare increasinglyawareof theeconomicbenefitsentailed.Driversforeco-innovationincludethefollowing:

- Strong political support and commitment towards eco-innovation, sustainabledevelopment and the circular economy. The government has the political will andcommitment to make the country a global technology hub for eco-innovation. Theobjective is to develop and grow in nichemarkets. The entry of theGreen Party intopower in 2013 has given additional strength to this sustained effort,with increasedopportunities for the expansion of the market for eco-innovations. Furthermore, thecirculareconomyassuchhasclearlybeenontheagendaofthegovernmentsince2014,andwillbeat leastuntil2018,wherepreviouslysustainabledevelopmentwastackledthroughinnovativetechnologies.

- Growingawareness frombusinessesof theeconomicbenefits theycanachieve fromfurther commitment to a circular economy. A strategic committee for a circulareconomywassetupwithinthegovernment,workingonpromotingtheconceptanditseconomic and environmental benefits among businesses. Companies are increasinglyawarethatthecirculareconomybringsconcretesolutionstothevolatilityofenergyandrawmaterialpricesandenables themto relyonamorestablebusinessmodel that isbeneficialtoboththeircompetitivenessandtheirenvironmentalimpact.

- Strongandcomprehensivesetofnationalenvironmentalandinnovation laws.Theseare largely based on European legislation and have been an effective tool forimplementingrelevantpoliciesandamaindriverforthepromotionofeco-technologiesandeco-innovation.

- Economicdiversification isapriority.To lower itsdependencyonthefinancialsector,Luxembourg has strived to diversify its economy for years and strongly supports anddevelops sectors such as clean technologies. The country also wants to continue topromote new concepts such as the circular economy, as a way of increasingcompetitiveness. Sustainable development in general, and green technologies, eco-innovationandthecirculareconomyinparticular,arepartofanationalplantodiversifythenationaleconomywithnewpromisingindustries.

While the circular economy is gaining momentum within the government and industry, thedownside is that funding is not always available for innovative projects due to a lack ofunderstandingorcommitmentfrombanks.Barriersthereforeincludethefollowing:

- Lack of understanding from banks about economic models sustaining the circulareconomy. A conference organised in 2015 at the European Investment Bank, onfinancingatransitiontowardsacirculareconomy,showedthatmanybankshave littleunderstandingofeconomicmodelssustainingthecirculareconomy.Thefinancialsector

12

thereforeneedsmorepilotprojects tobe implemented inorder tobetterunderstandthebenefitsandbemorewillingtograntcreditstoveryinnovativeprojects.

- Stress on resources to balance economic growth and environmental protection.LuxembourgenjoysacentralandstrategiclocationintheheartoftheEuropeanUnion.Itplaysanimportantroleinthegreaterregion,asit isthemaineconomicenginewithan important number of commuters and foreign residents. The interdependency ofLuxembourgand its geographicneighbours is strong,puttingpressureon thedemandfor housing, services and infrastructures, and to strong transport flows. This leads torisingenergydemand,inparticularforbuildingsandtransport.Alleco-innovationsthathaveabroader impactorthatrequireaholisticapproachtodevelopmentwillhavetobemadeincollaborationwiththeborderingregions,andmaterialflowswillneedtobecoordinatedandoptimised.

- Small national market for eco-innovations. Luxembourg is a small country with fewnatural resources and it imports most of its raw materials and energy sources. Itseconomyisthusparticularlyexposedtofluctuationsinmaterialpricesandcosts,puttingpressureonnational industries.Nevertheless,becauseof thesmallsizeof thecountryand the frameworkconditionsandpolicies inplace, the localmarket is flexible,whichmakes thecountryan idealplace to test innovativeR&D.Moreover, inorder tomakeinnovationsexpand,innovatorsneedtolookbeyondthenationalborders.

4 |Policylandscape:towardscirculareconomyinLuxembourg

TheLuxembourgGreenPartyhasbeenpartofthecountry’sgovernmentsinceDecember2013.In addition to a member of the Green Party being Secretary of State for SustainableDevelopment, the Greens are in charge of three Ministries: the Ministry of SustainableDevelopment,SpatialPlanningand Infrastructure; theMinistryof Justice;and theMinistry forEnvironment and Climate. TheMinisters ofMobility and Environment are a part of a “superministry”thatcoverssustainabledevelopment,whichis importantforLuxembourgintermsofgeneratingsupportforeco-innovation.

Thegovernmentpaysparticularattentiononthecirculareconomymodelbecauseofitsdesiretostrengthen thecompetitivenessof thecountry.Theaimof thismodel is two-fold: reducingthe environmental impact of Luxembourg’s industries and raising its competitiveness throughinnovative business models and cost reductions. The political support for such measures isstrengthened by the Green Party, and a Ministry of Economy that has been awarded morecompetenciesandresponsibilitiessincetheformationofthenewgovernmentinlate2013.

In2014,theMinistryofEconomy,oneofthemainstakeholdersinvolvedintheEco-InnovationCluster, commissioned a study entitled “Luxembourg as a Knowledge Capital and TestingGround for the Circular Economy – National Roadmap for Positive Impacts. Tradition,Transition, Transformation”. The aimof this studywas to investigate the current situation inLuxembourg, the economic potential of a circular economy and to develop a strategy toimplement such a paradigm shift. The study found that a circular economy is a source of

13

competitiveadvantage,asitwouldleadtoincreasedjobopportunities(morethan2,200jobsinthe next three years), important cost-savings (€300million to €1billion per year) and lesspressure on the environment. In addition, embracing a circular economy would increase theinflowofsecondaryrawmaterialsthatindustriesrelyon,reinforcingtheirinterdependencyandsubstantiallyreducingwasteproduction.Luxembourgisconsideredfertilegroundforthetestingof a circular economy, basedon the country’s values of “equity, cultural tolerance, economicstability,responsivegovernmentandmanageablesize”(EPEA,2014).

In order to work towards a more circular economy and to reap its expected benefits, thegovernment acknowledges that all relevant stakeholders must be united, in terms ofcoordinating their actions and sharing information. This was the rationale behind theestablishment of the inter-ministerial committee “Strategic group for a circular economy”,whichwassetupin2015,ledbytheStateSecretaryMrsFrancineClosener.

Among these coordinated actionswas the organisationof an international conferenceon thefinancing of a transition towards a circular economy in December 2015. It was held at theEuropeanInvestmentBank(EIB)headquartersintheframeworkoftheLuxembourgPresidencyof theCouncilof theEuropeanUnion fromJuly toDecember2015andthe InnovFinAdvisoryprogramme4onfinancingthecirculareconomy.ThePresidencyprovidedLuxembourgwiththeopportunity to engage in a partnership with the European Commission and the EuropeanInvestment Bank, with the objectives of raising awareness among the business and financialcommunities,toassessfuturefinancingneedsandtodeterminewhethertheexistingfinancialinstruments, inparticular the InnovFin financialproducts,are fit tosupport thetransitiontoamorecirculareconomy.Conclusionsandrecommendationswerepublishedinareportentitled“Assessment of access-to-finance conditions for projects supporting Circular Economy”.Accordingtothestudy,transitioningtoacirculareconomyisimperative,butmustbedoneinasystemic and integrated way to be effective, notably taking into account the regulatorylandscape,andtheneedtobuildintelligence,shareinformationandraiseawareness.Thiscouldbedone,forexample,bycreatingaplatformgatheringstakeholdersfrombusinessandfinancialcommunities and providing technical and investment advice to help promising projectsmaterialise.Thestudyalsofoundthatmarketforcesalonecouldcreateacirculareconomy,butonly slowly and with potentially high opportunity costs. Therefore, public intervention andsupport are crucial. Regarding financing, the European Investment Bank provides financialsupport through loans to firms, yet more needs to be done, especially for SMEs. Likewise,InnovFin can support projects that entail “technological innovation”, but projects based oninnovative organisation or business models, for example, are currently outside its scope.Eligibilitycriteriathusneedtobeexpanded.

Withregardtobusinesses,thegovernmenthasdevelopedatrademark–theSuperDrecksKëscht(seeboxonfollowingpage)– inorderto incentivisebusinessestobettermanagetheirwaste,rationalise their resource consumption and transition towards a more circular model. TheSuperDrecksKëschtisaparticularlyeffectivevehicleforthegovernmenttodeliveritsmessagestotheprivatesphere,giventhepopularityandrespectitholdsfrombusinesses.

InnovativecompaniesarealsofinanciallysupportedbytheLuxembourgFutureFund.Thefundwassetup in2015by theLuxembourgGovernment, theEuropean InvestmentFund (EIF)and

4InnovFinAdvisoryprogramme,websiteoftheEuropeanInvestmentBank:http://www.eib.org/products/advising/innovfin-advisory/index.htm?lang=en

14

the Société Nationale de Crédit et d’Investissement (SNCI). A total of €150million – with€30millioncomingfromtheEIFand€120millionfromtheSNCI–willbedeployedoverafive-year period. The goal of this fund is to support the diversification and the sustainabledevelopmentof theLuxembourgeconomy,attracting–directlyor indirectly–entrepreneurialactivitiestoLuxembourgthatare inanearlystart-upphase,developmentorgrowthphase,oractivitiesthatsupportinnovationingeneral.Themaintargetsectorsofthefundareinformationandcommunicationtechnologies(ICT),cleantechandothertechnologies,withtheexceptionofhealthtechnologies,whichalreadyhasadedicatedfund.TheLuxembourgFutureFundisgearedtowardsEuropeanSMEcompanies,andismanagedbytheexpertsoftheEuropeanInvestmentFundwhoalsoholdaminoritystakeintheFund.

Thecirculareconomyisalsofosteredbythegovernmentthroughthedevelopmentofeconomicactivity zones and ‘eco-neighbourhoods’ based on circular principles. These zones promotelow-carbon mobility, industrial symbiosis and collaborative consumption (equipment,machinery,cars,facilities,nurseries,resources,electricitysupply,withpurchaseagreementsatapreferentialrate,etc.).ThedemonstratorcityWiltz(seeboxbelow)andtheeco-parkWindhof5,set up in 2011, are successful examples of this policy. The government’s fiscal reform ofFebruary2016willalsoencouragesustainablemobilitywithaspecifictaxrebateasof20176.

Finally,theGovernment’spoliciesandeffortstopromoteagreenerandmorecirculareconomyareshowcasedonitswebsiteLetzGreen(seeboxbelow).

SuperDrecksKëscht

TheSuperDrecksKëschtisatrademarkdevelopedbytheLuxembourggovernmenttomanagewaste.Actionsandcampaignsarecarriedoutby the Ministry of Sustainable Development and Infrastructure, theChamber of Trade and the Chamber of Commerce, under a statemandatetodevelopinnovativeservicestobusinessesandcitizens.Itisbased on the EU waste hierarchy strategy, which prioritisesprevention, then reuse and recycling, over waste disposal such aslandfill.

TheSuperDrecksKëschtencouragessustainableconsumptionthroughthe provision of guidelines with information on purchasing eco-products or using cleaningproducts in anenvironmental friendlyway. It alsoorganises thecollection and ecological recycling of batteries and chargers. In addition, theSuperDrecksKëschtfavoursreverseconsumption.Thisentailstakingbackconsumergoods,aswell as reverse production. Substances are stored in a warehouse before they undergo asecondsortingprocessandspecialtreatmentstoachieveahigherrecyclingrate.

TheSuperDrecksKëschtwasrecognisedbytheEuropeanCommissionandawardedthe“bestpractice”labelinthefieldofnaturalresourcespreservationandclimateprotection.ItisalsoISO14001 (norm for environmentmanagement) and ISO14024 (quality label) certified. Its

5EcoparcWindhofwebsite:http://www.ecoparc.lu/6MinistèredesFinances,February2016,“Réformefiscale:impôtallégéetpluséquitabledesménages,réductiondelachargefiscalepourlesentreprises”,availableat:http://www.mf.public.lu/actualites/2016/02/reforme_fiscale_290216/index.html

15

concepthasalsobeenexportedtoNorwayandSwitzerland.

GivenSuperDrecksKëscht’swidepopularity,withmorethan4,000members,thegovernmentworkswithittopromoteacirculareconomyamongbusinesses.

Keywords:wastemanagement,reverseconsumption,reverseproduction,recycling.

Source:https://www.sdk.lu/index.php/en/

Contacts:Mr.GuettiCarlo,Coordinationofconsultationforcompanies–carlo.guetti@sdk.lu/Tel.+352488216215

Mr.ThomasHoffman,Coordinationofpublicrelationsandcommunication–thomas.hoffmann@sdk.lu/Tel.+352488216217

Wiltztobecomecirculareconomyhotspot

On 13 October 2015, theMinister of Economy announced its intention to turn the city ofWiltz into a circular economy hotspot, with several pilot projects being launched todemonstrate their potential and to inspire other actors in the adoption of the circulareconomyprinciples.Theideaistobuildonexistingopportunitiesandtodevelopaknow-howthatwouldthenenablenewinnovativeprojectstodevelop.

Whileunveilingtheproject,theMinisteroftheEconomy,MrsFrancineClosener,announcedthat theapproachadoptedwasbothbottom-upand top-down, inorder to supportprivateinnovativeinitiativesandlocalauthoritieswillingtoimplementcirculareconomyprojects.

The main initiative at Wiltz is the rehabilitation of industrial sites to be replaced by aresidentialcomplexona28-hectaresurface.Otherprojectsinclude:

- theopeningofa“RepairCafé”anda“fablab”(includinga3Dprinter);

- the construction of a positive-energy building, including six dwelling units,made ofcompletelyreusablematerials;

- theintegrationin2016-2017ofacourseoncirculareconomyinthefutureuniversityofWiltzinthefieldsofarchitectureanddesign;

- theintegrationofcirculareconomyprinciplesinthecity’sSalzbaacheconomiczone.

Keywords:circulareconomy,repaircafé,fablab,3Dprinting,positive-energybuilding

Source:http://letzgreen.lu/wiltz-become-circular-economy-hotspot

16

LetzGreen–LuxembourgisGreen

LetzGreen is a website created by theMinister of Economy to raiseawareness, to share best practicesregarding clean technologies, energyefficiency, green buildings and thecircular economy, and to promote agreenereconomy.

“LetzGreenisLuxembourg’sprojecttopromotethecleantechnologiessectortobecomeoneoftheprincipalpillarsoftheeconomy.Withaspecialfocusoncirculareconomy,Luxembourgaims to remain competitive by providing affordable energy to industry while furtherdeveloping a thriving renewables sector. The government is focused on providing anattractive economic environment for entrepreneurs to generate profits whilst cuttingpollution,wasteandenergyuse.

Thegovernment’spriorities for theemergingcleantechnologiessectorareprimarilyenergyefficiency and green buildings. These will be emphasised by linking energy policy witheconomicdiversificationpolicy,focusingresearchontherationaluseofnaturalresourcesandinnovative materials. To do this, the government continues to actively support thedevelopment of Luxembourg’s existing companies, encouraging their export activities byputting Luxembourg on the map for clean technologies. It will also maintain a favourablebusinessenvironmentbykeepingVAT rates, corporate tax, and labour costsat competitivelevels.”

Key words: clean technologies, energy efficiency, green building, circular economy,competitiveness

Source:http://letzgreen.lu

Contacts:

Dr Helena Burg, ProgrammeManager, National Research Fund – helena.burg@fnr.lu / Tel.+35226192555

DrChristianTock,DirectorateforNewTechnologies,MinistryofEconomy–christian.tock@eco.etat.lu/Tel.+35224788413

17

References

Chambre de Commerce du Grand-Duché de Luxembourg, 2015, Traits caractéristiques de l’économieluxembourgeoise. Available at:http://www.cc.lu/fileadmin/user_upload/cc.lu/Luxembourg_une_economie_dynamique/Ecolux_CC_FR_02_2015.pdf

DiPillo,N.,2015,«Le“must-have”de l’année: L’économiecirculaire s’imposeprogressivementcommenouveaumodèle»,inWort,23December2015.

EcoInnovation Cluster, 2014, Luxembourg EcoInnovation Cluster Presentation. Available at:http://www.cc.lu/uploads/media/Conf%C3%A9rence_diplo_23_04_2014_Marcel_Klesen.pdf

EcoInnovationCluster,2015,EcoInnovationCluster:Activities–JanuarythroughOctober2015.Availableat:http://www.ecoinnovationcluster.lu/

EPEAInternationaleUmweltforschungGmbHwithReturnityPartners,fortheMinistryofEconomy,2014,Luxembourg as a knowledge capital and testing ground for the circular economy.National roadmap topositive impacts. Tradition, Transition, Transformation. Available at:http://www.ecoinnovationcluster.lu/Services/Circular-Economy

EuropeanInvestmentBank(EIB), InnovFinAdvisory,EuropeanCommission,2015,Assessmentofaccess-to-finance conditions for projects supporting Circular Economy – Final Report. Available at:http://www.innoventerprise-conference.eu/

European InvestmentFund,SociétéNationaledeCréditetd’Investissement, 2015,EntréeenactionduLuxembourg Future Fund pour le soutien des PMEs. Communiqué de Presse. Available at:http://www.eif.org/what_we_do/equity/news/lff-fr.pdf

Ludwig,J.-M.,2015,FitForCircularity–Présentationduprogramme,LuxInnovation

Ministry of Economy, 2015, Bilan Compétitivité, 2015 – Stabilité dans un environnement à risques,Perspectives de politique économique, n°30, October 2015.

18

ANNEX:Policymeasuresaddressingcirculareconomyandeco-

innovationsinLuxembourg

Groupofpolicymeasures Typeofpolicymeasure

Specificmeasure

Pleaseprovidereferencetoorbriefsummaryofspecificmeasures(national,regional)

Focusofpolicymeasure(tickifrelevant)

Circulareconomy

Genericfocusoneco-

innovation

Resourceefficiencyimproveme

nt

Energyefficiencyimprovement

Reductionof

emissionsincl.CO2

Otherrelevantareas(e.g.renewableenergy,etc)

SUPPLYSIDEFOCUS

Equity/business

support

Publiclyco-fundedventurecapitalfunds

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

X

The non-profit organisation “Luxembourg Private Equity & Venture

Capital Association” (www.lpea.lu) offers a good insight on how theLuxembourgmarketisstructured.

X

Structures with a European reach, such as for example Oraxys

(www.oraxys.com), have their offices in Luxembourg and specialise ininvestmentsinclean-technologiesandpublichealthandenergy.

X

Publicguaranteefunds

The“LuxembourgFutureFund”initiative X

The Luxembourg State Bank “Société Nationale de Crédit et

d’Investissement”(SNCI–www.snci.lu)isapublic-lawbankinginstitutionspecialised in medium- and long-term financing ofLuxembourg-basedcompanies. SNCI’s financing instruments are investments in fixed assets,innovationsandexports.

X

SupportforR&D

inpublicsector

andindustry

R&Dfunding

The Luxembourg Law on Promotion of Research, Development and

Innovation, of 5 June 2009, based on Commission Regulation (EC) No.800/2008of6August2008declaringcertaincategoriesofaidcompatiblewiththecommonmarketinapplicationofArticles87and88oftheTreaty(GeneralblockexemptionRegulation)andtheR&D&IGuidelinesbytheEUCommission(2006/C323/01),hasbeenprolongedtillendof2014andwillberewritteninordertobeinlinewiththeupcomingnewEUregulationonStateAid.

X

19

Groupofpolicymeasures Typeofpolicymeasure

Specificmeasure

Pleaseprovidereferencetoorbriefsummaryofspecificmeasures(national,regional)

Focusofpolicymeasure(tickifrelevant)

Circulareconomy

Genericfocusoneco-

innovation

Resourceefficiencyimproveme

nt

Energyefficiencyimprovement

Reductionof

emissionsincl.CO2

Otherrelevantareas(e.g.renewableenergy,etc)

Innovation loan provided by the “Société Nationale de Crédit etd’investissement” (SNCI) is an instrument aimed at co-financingexpenditures of R&D projects involving the launch of a new product orservice or the development of newmanufacturing or commercialisationprocesses. The innovation loan is an additional instrument to the R&DincentiveschemeoftheMinistryoEconomyandForeignTrade.

X

X

X

Financial support of the Ministry of Higher Education and ResearchprovidesfundstoR&Dprojectsinpublicorganisations.ThepriorityoftheprogrammeistosupportpublicorganisationsintheirR&Dprojects.

R&DincentiveschemeoftheMinistryofEconomyandForeignTrade(RDILaw of 5 June 2009). The objective of the scheme is to co-financeinvestmentsofgeneraleconomicinterestinR&Dsoughtbyprivate-sectorbusinesses and research centres to stimulate the development of R&Dactivities within these organisations. The beneficiaries are industrialundertakings, service providers with a key impact on economicdevelopment,andprivate-sectorresearchcentres.Ittakestheformofanoutright grant. Co-financing covers fundamental research (up to 100%),applied research (up to 80%) and pre-competitive development (up to60%)dependingonthesizeofthecompanyandwhetherthecompanyiscollaboratingwitharesearchinstituteornot.

Collaborativegrants

ERA-Net ECO-Innovera. It funds transnational and multidisciplinary R&Dprojects considering social, environmental, market and technologicalissues.

X X X

FNRCOREThematicProgramme. Theaimof theprogramme is to fosterscientific quality in areas of socio-economic relevance. There are fiverelevance themes for funding. Two are of particular relevance for eco-innovation: sustainable resource management; and new functional andintelligentmaterialsandsurfaces,andnewsensingapplications.Thecallsfor proposals are addressed to public institutions, Luxembourgadministrations, and public establishments authorised to undertake R&Dactivitiesortechnologytransferintheirrespectivefieldsofactivity.

X X

R&Dinfrastructure TheLuxembourgUniversityCampus inEsch-Belval. Thegovernmenthas X X

20

Groupofpolicymeasures Typeofpolicymeasure

Specificmeasure

Pleaseprovidereferencetoorbriefsummaryofspecificmeasures(national,regional)

Focusofpolicymeasure(tickifrelevant)

Circulareconomy

Genericfocusoneco-

innovation

Resourceefficiencyimproveme

nt

Energyefficiencyimprovement

Reductionof

emissionsincl.CO2

Otherrelevantareas(e.g.renewableenergy,etc)

investedmorethan€1billioninthiscampus.Itisbuiltonformerindustrialgrounds where the government had to tackle the challenge ofdecontaminationofpartiallypollutedgrounds.Astudywascommissionedby the Fonds-Belval to investigate the potential for renewable energy intheurbancontextatEsch-Belval.

The two main public research centres, Gabriel Lippman

(www.lippmann.lu) and Tudor (www.tudor.lu), are being merged into asingleLuxembourgInstituteofScienceandTechnologyallowingsynergiesbetweendepartmentsfocusingoneco-innovations.

X

Fiscalmeasures

TaxincentivesforR&Dandstart-ups

Comprehensivesupportforstart-upsanddevelopmentisprovidedbythe“BusinessPortail”(www.guichet.lu)

X

TaxincentivesforR&Dpersonnel

Education,

trainingand

mobility

Tailoredtrainingcoursesforcompanies,entrepreneurs

Trainingclassesareorganisedbythe“Institutnationalpourledéveloppementdelaformationprofessionnellecontinue”(http://www.infpc.lu/INFPC/Article/Accueil/fr)theChamberofCrafts(www.cdm.lu)andtheLuxembourgSchoolforCommerce(LSC–http://www.lsc.lu/)

X

Advise/consultingforstart-ups,companies,entrepreneurs

Technoport – enterprise and innovation centre. The Luxembourggovernmentcreatedthecentre inordertodiversifytherangeofsupportservicesonoffer to innovativebusinesses inLuxembourg.ThemissionofTechnoport is to support promoters of innovative projects at the ideastageandtoprovideongoingassistanceuptothestart-upphase;aswellas to provide temporary accommodation for domestic and foreignbusinesses at the development stage seeking a temporary foothold inLuxembourg.(See:www.technoport.lu)

X

21

Groupofpolicymeasures Typeofpolicymeasure

Specificmeasure

Pleaseprovidereferencetoorbriefsummaryofspecificmeasures(national,regional)

Focusofpolicymeasure(tickifrelevant)

Circulareconomy

Genericfocusoneco-

innovation

Resourceefficiencyimproveme

nt

Energyefficiencyimprovement

Reductionof

emissionsincl.CO2

Otherrelevantareas(e.g.renewableenergy,etc)

WithintheTechnoport,afablabhasbeenputintoplaceinordertooffercompanies an open prototyping platform whereknowledge sharingisessential.Toolssuchas3Dprinters,CNCmillingmachines,alasercutteroravinylcutter,aswellastechnicalandlogisticalassistance,areavailabletofacilitate invention. But equal emphasis is put on fostering amultidisciplinaryandintergenerationaldynamicbetweenstart-ups,artists,designers, architects, engineers, hobbyists, researchers, students and soon.

X

The Luxembourg Government recently launched the “Learning Factory”(www.learningfactory.lu), turning resource productivity and leanoperationsintocompetitiveadvantage.

X

Placementschemesforstudents

SinceLuxembourgisamulticulturalcountrywithnearly50%ofinhabitantsbeing of foreign nationality, and nearly 70% of the workforce beingforeign,multipleuniversities,researchinstitutions,companiesandpublic

institutions promote placement schemes for students abroad and in

Luxembourg.

X

SupportforR&Dworkersrecruitments

ATTRACT Programme. The aim of the programme is to build on theexcellence, dynamism and creativity of research in Luxembourg byattracting young researchers with a high level of ability in science ortechnologyandprovenexperienceinaprofessionalresearchcontext.Thefieldsof research targetedare thoseprioritisedbypublic-sector researchbodiesinLuxembourg.TheprogrammeisdesignedforresearchersnotyetestablishedinLuxembourg.Itoffersresearcherstheopportunitytosetuparesearchteamwithinapublic-sectorresearchinstitutioninLuxembourg.

X

NationalResearchTrainingGrantScheme.TheschemesupportsPhDandpostdoctoral research training in Luxembourg and abroad. It aims atdevelopinghumanresourcesinpriorityresearchareasinthecountry.TheNationalResearch Fund (FNR)manages the scheme.Grants are awardedforaperiodofbetween3and4years.

X

22

Groupofpolicymeasures Typeofpolicymeasure

Specificmeasure

Pleaseprovidereferencetoorbriefsummaryofspecificmeasures(national,regional)

Focusofpolicymeasure(tickifrelevant)

Circulareconomy

Genericfocusoneco-

innovation

Resourceefficiencyimproveme

nt

Energyefficiencyimprovement

Reductionof

emissionsincl.CO2

Otherrelevantareas(e.g.renewableenergy,etc)

Networksand

partnerships

Competencecentres,clusters,science-technology

parks

TheEco-Innovation Clusterwww.ecoinnovation.lu is part of the ClustersProgramme launched by the Ministry of Economy and Foreign Trade in2002.Itisanactivenetworkthatsupportsactorsoftheclean-technologiessector in Luxembourgwith the goal of creating and developing new andsustainable business opportunities through collaborative R&D andinnovationprojects. It isoneofthekeyelementsoftheEco-technologiesActionPlanofLuxembourg,launchedinFebruary2009.Theclustercoversmany different areas, such as: eco-construction and eco-materials; eco-design and eco-conception; the rational use of energy; and renewableenergies. It has a special focus towards concepts based on the “circulareconomy”,“smartmobility”andsustainableconstruction.

X X X X X X

Technologyplatformsandinnovationnetworks

The National Agency for Innovation “Luxinnovation”(www.luxinnovation.lu)offersawiderangeofintegratedandpersonalisedservices, which are based on a sectoral approach and providedfree ofchargetobusinessesofanysize,aswellasinnovativestart-upsandpublicresearch organisations. It coordinates the Luxembourg Cluster Initiative(www.clusters.lu) and helps companies understand the European andNationalStateAidRegimes.

X X X X X X

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

X

The“CentrevirtueldelaConnaissancesurl’Europe”(http://www.cvce.eu/),the“Centred’étudeseuropéennesRobertSchuman”(http://www.cere.public.lu/fr/index.html),andthe“Institutd’Étudeseuropéennesetinternationals”(http://www.ieis.lu/)aredifferentplatformsofferingimportantservicestothegeneralpublicinLuxembourgandabroad.

X

The Luxembourg Foresight Exercise was a participative processundertakenbytheLuxembourg“Fondsnationalde larecherche”(FNR) in2006-2007. The Foresight Exercise aimed at identifying national researchprioritiesinthepublicsectorwithsocio-economicinterestforLuxembourg

X

23

Groupofpolicymeasures Typeofpolicymeasure

Specificmeasure

Pleaseprovidereferencetoorbriefsummaryofspecificmeasures(national,regional)

Focusofpolicymeasure(tickifrelevant)

Circulareconomy

Genericfocusoneco-

innovation

Resourceefficiencyimproveme

nt

Energyefficiencyimprovement

Reductionof

emissionsincl.CO2

Otherrelevantareas(e.g.renewableenergy,etc)

society. It was based on a close involvement of stakeholders from theresearchcommunity,society,andtheeconomyofLuxembourg,aswellasanumberofinternationalexperts.

The Ministry of Economy runs the “Observatoire de la Compétitivité”http://www.odc.public.lu/ delivering on a regular basis the most recentfiguresonthecompetitivenessoftheLuxembourgeconomyincomparisonwithothercountries.Thenationalstatisticsportalwww.statec.luisalsoavery open and transparent portal where information of all sectors andtopicsarefreelyaccessibletocompaniesandpeople.

X

DEMANDSIDEFOCUS

Regulationsand

standards

Regulations,targets,cap&tradeschemes

TheAirQualityPlanforLuxembourgCity.Themainobjectiveistorestrictexceedingthenitrogenoxide(NOx)limitsinthecitycentreofLuxembourg.Someofthemeasuresproposedincludeanacceleratedrenewalofthecitybus fleet, the creation of a tramway, and the prohibition of trucks incertaincriticalsectorsofthecity.

X X

Public

procurement

“Green“publicprocurementofgoodsandservices

X

R&Dprocurement

Pre-commercialprocurement

24

Groupofpolicymeasures Typeofpolicymeasure

Specificmeasure

Pleaseprovidereferencetoorbriefsummaryofspecificmeasures(national,regional)

Focusofpolicymeasure(tickifrelevant)

Circulareconomy

Genericfocusoneco-

innovation

Resourceefficiencyimproveme

nt

Energyefficiencyimprovement

Reductionof

emissionsincl.CO2

Otherrelevantareas(e.g.renewableenergy,etc)

Technology

Transfer

Advisorysupportfortechnologyadopters

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

Financialorfiscalsupportfortechnologyadopters(e.g.grantsforpurchasingnew

technology)

Aid for environmental protection and the rational use of energy in

artisanal and commercial SMEs. The subsidy aims to encourage andsupport the investment inenvironmentalprotectionand therationaluseofnatural resources. It financesall investments thatallowSMEs tomeetEUenvironmentalstandardsforaperiodofthreeyearsfromtheadoptionof these standards; all other investments directed to produce energysavings, renewable energies, or the combined production of energy andheat; and all expenses incurred by SMEswhen using external consultingwith the objective of making progress in the field of environmentalprotectionandtherationaluseofnaturalresources.

Aid for investment in environmentalprotectionand the rationaluseof

naturalresources.Sameasabove,butfocusingonalltypesofenterprises.It concerns all investments in the field of environmental technologies orenvironmentally friendly processes (compliance with EU norms,investmentsinenergysavings,co-generationofrenewableenergysources,energyproductionfromrenewableenergies,andenvironmentalstudies).

X

X

X

X

X

X

X

Supportof

privatedemand

Taxincentivesforconsumers(e.g.forpurchasing

environmentallyefficientproducts)

Demandsubsidies(e.g.eco-vouchers,consumer

subsidies)

PRIMeCAR-e.AspartofthepromotionofcarswithlowCO2emissionstheLuxembourg government offers the buyer of a new car (registered inLuxembourg) a subsidy related to the amount of CO2 emissions of €750,€1,500or€3,000.

X

PRIMe CAR-e plus. Financial subsidy for individuals and enterprises to X

25

Groupofpolicymeasures Typeofpolicymeasure

Specificmeasure

Pleaseprovidereferencetoorbriefsummaryofspecificmeasures(national,regional)

Focusofpolicymeasure(tickifrelevant)

Circulareconomy

Genericfocusoneco-

innovation

Resourceefficiencyimproveme

nt

Energyefficiencyimprovement

Reductionof

emissionsincl.CO2

Otherrelevantareas(e.g.renewableenergy,etc)

purchase a low CO2 emissions car associatedwith the substitution of anoldcarofmorethan10years.TheamountofthesubsidydependsontheCO2emissionsofthenewcar,andcanbeof€1,500or€1,750.

PRIMeCool.Financialgrantsofbetween€100and€150forthepromotionofelectricalappliancesandrefrigeratorsatlowenergyconsumption(A++)

X

PRIMe House. Financial grants for individuals targeting energy savingmeasures and the use of renewable energies in the housing sector. Thegrants can reach €15,000 for low energy houses, or up to €40,000 forpassivehouseswithtechnicalequipmentsuchasheatingpumpsandsolarand thermal installations.Grantsarealsoavailable forencouragingcleanenergies in exiting buildings older than 10 years, where the potentialenergysavingsareparticularlyimportant.Theschemealsoencouragestheuse of solar and thermal heating pumps, boilers that run on pallets andwoodchips,andthereplacementoflow-efficiencyboilers.

X X X

Awarenessraisingandinformationprovision

AbouttheEco-InnovationObservatory(EIO)

The Eco-Innovation Observatory (EIO) is the initiative financed by the European Commission’sDirectorate-General for the Environment. The Observatory is developing an integrated informationsource and a series of analyses on eco-innovation trends andmarkets, targeting business, innovationserviceproviders,policymakersaswellasresearchersandanalysts.

VisitEIOandDGENVEco-innovationActionPlan(EcoAP)websiteandregistertogetaccesstomoreinformationandtoaccessallEIOreports,briefsanddatabases.

www.eco-innovation.euec.europa.eu/environment/ecoap