Luxembourg has made progress in decoupling environmental pressures from economic growth,
treating wastewater and managing waste and materials. It has also positioned itself
as an international centre for green finance. Yet, it remains one of the most carbon-
and material-intensive economies in the OECD. The country is a crossroads for freight
traffic and attracts thousands of daily cross-border commuters. This exacerbates greenhouse
gas emissions, air pollution and road congestion. Urban sprawl, landscape fragmentation
and agriculture exert strong pressures on biodiversity.
To steer its economy towards a greener model, Luxembourg has set ambitious environmental
objectives. Greening taxation, providing stronger price signals, promoting eco-innovation
and the circular economy, mainstreaming biodiversity into all policies, and investing
in low-carbon infrastructure and sustainable mobility, should be priorities.
This is the third Environmental Performance Review of Luxembourg. It evaluates progress
towards green growth and sustainable development, with special chapters focusing on
two major issues: air quality and mobility, and biodiversity.
Published on November 13, 2020Also available in: French