LUXEMBOURG Trends and Developments Contributed by: Nathalie Prüm-Carré, Inès Goeminne and Georges Gratia, Elvinger Hoss Prussen
Insufficient plots for compensation measures The Law of 18 July 2018, as amended, provided for a transitional provision allowing the use of the eco- points system in cases where compensation pools are not available in sufficient quantity at the time when project developers cause ecological damage. However, in certain ecological sectors, the State and municipalities do not yet have a sufficient number of plots of land to carry out compensation measures. In order to remedy this situation, the Law of 11 July 2025 extended the transitional period that was due to expire on 9 September 2025 by a further eight years, until 9 September 2033. This extension avoids administrative and legal dead- locks for construction or development projects. It also gives public authorities the time they need to com- plete the national ecological infrastructure and ensure effective compensation in each environmental sector. Biotopes Symbiosis between animal species and urbanisation In a recent decision (Administrative Court ruling of 24 April 2025, docket No 51649C), the Administra- tive Court reiterated that the mere presence of animal species on a plot of land, including bats, cannot auto- matically be equated with a building ban. Established case law considers that this issue should be viewed not in terms of a building ban, but in terms of “sym- biosis” – ie, “living together”. The Court thus emphasised that human construc- tions have always created living spaces for certain species (bats and certain birds). Therefore, it cannot be inferred that such a presence necessarily excludes any possibility of construction. Municipal Planning “Green zone bis” One of the important developments in Luxembourg is the ongoing reform of municipal planning. A bill (No 8578) tabled in the Chamber of Deputies on 9 July 2025 and a draft Grand-Ducal regulation aim to intro- duce a new land use zone into the general develop- ment plan (PAG) of municipalities, called the “green zone bis”.
In general, the green zone is governed by a non- constructability principle. However, over time, certain old buildings in the green zone, including residential houses, have become subject to more restrictive regu- lations under nature conservation legislation. Objective of the reform The new “green zone bis” is intended for “discon- nected clusters” ( îlots déconnectés ) in which existing dwellings are located in what is now a green zone – ie, in one of the parts of the national territory not primarily designated for urban development. The main objective of this reform is to simplify admin- istration procedures and create an appropriate zoning system to cover and regulate disconnected clusters. Authorisation and supervision A key point of the reform is that a building permit from the minister responsible for the environment will no longer be required for buildings in green zone bis are- as that meet the criteria defined in the municipality’s general development plan (PAG). The PAGs will focus in particular on land use so that new constructions or extensions to existing construc- tions have no significant impact on the natural envi- ronment and landscape. The requirements applicable to parcels classified as green zone bis will be set at the PAG level. Limits of the scheme The green zone bis will not allow the creation of new housing units. The aim of this new zone is therefore not to increase the density of the sites covered by such units. Renewable Energies Directive (EU) 2023/2413 on renewable energies A bill of law (No 8508) is currently seeking to amend the Law of 15 May 2018 on environmental impact assessment, as amended. This bill has not yet been definitively adopted and is subject to change before it comes into force. The purpose of this bill is to imple- ment into Luxembourg law certain provisions of Direc- tive (EU) 2023/2413 of the European Parliament and of the Council of 18 October 2023 amending Direc- tive (EU) 2018/2001, Regulation (EU) 2018/1999 and
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