Businesses in Luxembourg: who is really banking on the green economy?

This article is part of our monthly series: “Green jobs in Luxembourg”.

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Each Tuesday, find a different article on our site:

• Everything you need to know about green jobs in Luxembourg (read here)
• Training and retraining: the keys to accessing green jobs (read here)
• Green jobs: 3 sectors in full transformation in Luxembourg (read here)
• Businesses in Luxembourg: who is really banking on the green economy?

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In Luxembourg, the ecological transition is no longer a simple speech: many actors are transforming their economic models. But which companies are really undertaking the change and creating green jobs?

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Major pioneer groups: energy, mobility and sustainable finance

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In Luxembourg, several major groups have already taken a significant step forward in the ecological transition.

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Encevo, the CFL and ArcelorMittal Luxembourg have launched structural programs combining decarbonization, energy efficiency, fleet electrification and infrastructure renovation.

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In general, transformation goes beyond simply replacing technology. It involves a global reorganization of the business model, integrating waste reduction, site energy optimization, improvement of employee mobility and adaptation to new environmental standards.

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From this perspective, finance is a major driver of this dynamic thanks to the Luxembourg Green Exchange (LGX), an essential platform for sustainable finance (see video below). The OECD recalls that the LGX “plays a pioneering role in sustainable finance”, and List more than 2,100 green bonds from 60 countries.

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This increase in power generates the need for new skills: technicians specialized in renewable energies, engineers in energy efficiency or experts in sustainable mobility.

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Companies that really go green are those that measure their impacts, reorganize their value chain and publish concrete results.

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SMEs and impact startups: a driver of local innovation

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While major groups lead the way, SMEs and startups are one of the main drivers of Luxembourg's green economy.

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We can cite Orbisk, which is developing an artificial intelligence solution dedicated to the fight against food waste, or Ouni (Organic Unpackaged Natural Ingredients), a pioneer in packaging-free distribution, which demonstrate that ecology can go hand in hand with economic performance.

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According to the Luxinnovation annual report 2024, 891 companies were supported that year, a significant portion of which were involved in sustainability-related projects.

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This dynamic favors the emergence of new hybrid jobs combining tech, circularity, green logistics or shared mobility. It also reinforces the dissemination of transversal skills throughout the economic ecosystem.

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The role of public policies: subsidies, taxation and regulatory framework

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In Luxembourg, the public authorities have largely contributed to accelerating the ecological transition thanks to an arsenal of financial aid and support mechanisms.

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The Ministry of the Environment, Climate and Sustainable Development (MECDE) and Luxinnovation support projects through targeted grants, tax credits for green investments or programs such as the Green Transition Fund and Neistart Lëtzebuerg.

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These policies create an environment conducive to innovation, reduce entry barriers for green projects, and reinforce the country's attractiveness as a European hub for sustainable finance.

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Impact on employment: a double speed transition

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The ecological transition is profoundly transforming the labor market. On the one hand, sectors related to energy renovation, charging infrastructures or carbon-free mobility services create new jobs. On the other hand, some traditional sectors, such as conventional road transport or fossil fuel activities, are experiencing a slowdown.

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A recent OECD report highlights that while employment remains robust, the number of vacancies remains above the pre-pandemic average, which implies a need for rapid adaptation of skills.

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This represents a major challenge for HR services: supporting retraining, anticipating tomorrow's qualifications and avoiding fractures between growing sectors and declining activities.

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Evaluating commitments: from ambitions to results

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The green transition therefore requires constant vigilance in order to avoid commitments remaining at the declarative stage. A study on sustainable finance, entitled” A Reality Check on Green Finance ” highlights a certain recent stagnation in Europe despite the amounts mobilized.

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Luxembourg has a clear ambition in terms of the green economy and mobilizes many players: large companies, SMEs, startups and public authorities. The ecological transition is a major driver of innovation, competitiveness and attractiveness. But this transformation must be accompanied by measurable commitments, real investments and skills development.

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For businesses, this means integrating sustainability into the core of their strategy. For employees and candidates, the green economy represents a source of opportunities and a favorable ground for professional retraining.

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Examples of actors to follow in Luxembourg

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Several companies illustrate this transition in concrete terms:

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Encevo Group strengthens the production of green electricity and develops smart grids by following a carbon neutrality objective by 2040.

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ArcelorMittal Luxembourg focuses on recycled steel through its XCarb™ program and aims to reduce emissions by 30% by 2030.

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The CFL are continuing to modernise the energy of the railway fleet with the ambition of reaching 100% green electricity by 2026.

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Orbisk reduces food waste by 30% in pilot establishments.

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Ouni extends its network of zero waste stores and creates local jobs.

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BGL BNP Paribas invests in ESG funds and manages 2.4 billion euros in sustainable assets.

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FAQS

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How to recognize a company that is truly committed to the green economy?
A committed company measures its impacts, publishes sustainable reporting and implements concrete actions, such as reducing CO₂ or green investments.

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Do SMEs and startups play an important role in the green economy in Luxembourg?
Yes, they carry a large part of green innovation and benefit from the support of actors such as Luxinnovation.

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What are the main obstacles to the green transition of Luxembourg companies?
The major obstacles are the cost of investments, the lack of skills and the difficulty in accurately measuring impacts.

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