Taking action in Luxembourg for the climate

More than 90 participants from government, academia, economic institutions, municipalities, civil society and international organisations gathered today at Neimënster Abbey for the symposium “Competitiveness within a Safe and Just Operating Space”, organised by the Luxembourg Climate Policy Observatory (Observatoire de la politique climatique – OPC). The event explored how societies can thrive economically while also safeguarding planetary boundaries and human wellbeing.

In light of the new energy-price support measures announced on the 9th and 14th of July 2026, the OPC wishes to reaffirm its earlier position on fossil fuel subsidies.1 The OPC recognises the importance of protecting households from sudden increases in energy prices, especially those already facing financial insecurity. However, broad and insufficiently targeted energy-price subsidies, especially if they support energy produced from fossil fuels, are not the right answer. They reduce the incentive to save energy, delay the shift away from fossil fuels, and risk locking households, firms and public budgets into a costly and climate-damaging dependency and higher energy costs.