Country Notes from OECD Economic Policy Reforms: Going for growth 2011 presenting OECD recommendations for structural reform priorities for individual countries.
Since the last review in 2004, Luxembourg has reformed its energy policies across all sectors, has fully liberalised its electricity and natural gas markets, and is actively participating in the development of the evolving Central West European regional electricity system. Luxembourg has also prepared a broad action plan on energy efficiency, improved the support system for renewable energy sources and revised taxes to mitigate climate change.
The country’s energy policy in the coming decade will be shaped by the EU 2020 targets that call for substantial reductions in greenhouse gas emissions, and strong increases in renewable energy and energy efficiency. These targets will be hard to meet, given that roughly half of energy-related CO2 emissions come from transport fuel use by foreign truckers and motorists, and that Luxembourg’s potential for producing much more renewable energy is limited.
Luxembourg is heavily dependent on oil. Although oil sources are well diversified by country of origin, more than 85% of oil stocks are held in neighbouring countries and often based on short-term leasing contracts. This leaves the country vulnerable to potential oil supply disruptions. Luxembourg should swiftly implement a plan to improve the security of oil supply.
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This note, taken from Chapter 3 of Economic Policy Reforms: Going for Growth 2009, contains information about the progress in implementing reforms in line with the 2008 priorities for Luxembourg.
Luxembourg is today one of the main international centres for investment funds. Besides the sector’s direct and indirect employment effects, the most important effect is the large tax revenue generating capacity of the sector, accounting directly for over 20% of aggregate tax revenues.
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Agri-environmental indicators for Luxembourg and data on the environmental performance of Luxembourg agriculture. Extract from the OECD publication Environmental Performance of Agriculture in OECD Countries since 1990 (2008).
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Links to sites from Luxembourg on agri-environmental issues.
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Working Group on Bribery Phase 2bis report on Luxembourg
Too many workers leave the labour market permanently due to health problems, and yet too many people with a disabling condition are denied the opportunity to work. This is a social and economic tragedy common to virtually all OECD countries, and an apparent paradox that needs explaining.
Luxembourg has brought about a profound change for the better in its economy. What can be done to ensure these changes continue in the long term and in co-operation with its neighbours? The OECD Territorial Review of Luxembourg explores these questions.