The Luxembourg Chamber of Commerce has announced its stance on the plans for housing and energy efficiency upgrades.

The legislative package “Klimabank an nohaltegt Wunnen” comprises the reform of financial aid, which has been given the name “Prime House”, the introduction of a certification of sustainability for accommodation, the creation of a “one-stop shop” for all housing-related assistance, and the implementation of climate loans at reduced and zero rates.

This set of reforms aims to encourage more energy-efficient housing or the installation of technical equipment which promotes renewable energy sources in this sector, as well as promoting the production of renewable energy and the sustainable renovation of buildings older than ten years.

Such reforms should enable the construction sector to contribute to the ambitious climate targets which Luxembourg has set itself for 2020 and beyond. For instance, they should help with the reduction of greenhouse gas emissions and the increased use of renewable energy sources.

Nevertheless, the Chamber of Commerce has pointed out some problems with the reforms. One notable issue is that whilst the government appears to be confronting the major challenge of renovating Luxembourg’s housing stock, it does not seem to have followed the recommendations of several key figures to further sustain housing supply.

Further criticism includes the idea that the “Prime House” scheme, which is set to come into force on 1 January 2017, is an extension rather than a large reform. Likewise, the Chamber of Commerce considers it essential to encourage greater focus on sustaining housing supply to in order to testore better balance between supply and demand on the national real estate market, and through different mediums.

However, the Chamber of Commerce has shown its support for the certification of housing sustainability, which replaces a simplistic and inadequate system, as well as plans for a “one-stop shop” for all housing aid.