Simulation of Luxembourg's economic energy transition

STATEC has developed the projections for the update of the integrated National Energy and Climate Plan (PNEC). STATEC models were used to simulate major economic trends and quantify past and future measures impacting energy consumption and greenhouse gas (GHG) emissions. This analysis compares the respective trajectories in relation to emissions targets, and assesses the potential impact at the macroeconomic level. It shows that the overall target would be reached by 2030, and that Luxembourg would gradually approach carbon neutrality by 2050. The energy transition would probably have only a negligible impact on activity from a macroeconomic point of view, especially by 2030. Increased investment (private and public) and lower energy expenditure are nevertheless likely to have a positive, albeit marginal, impact on activity.