OECD Environmental Performance Reviews luxEmbOuRg latest reviews available OECD Environmental • Germany 2001 Topics covered: • Iceland 2001 Performance Reviews • Norway 2001 Air and Water • Portugal 2001 Waste and Materials Management • Slovak Republic 2002 luxEmbOuRg Nature and Biodiversity • Japan 2002 Environment-Economy Interface • United Kingdom 2002 • Italy 2002 Environment-Social Interface • Netherlands 2003 International Commitments and Co-operation • Poland 2003 • Mexico 2003 • Austria 2003 O • Canada 2004 E C • Sweden 2004 D • Spain 2004 E This book is part of the OECD Environmental • France 2005 n v Performance Reviews Programme which conducts peer • Chile* 2005 ir • Czech Republic 2005 o reviews of environmental conditions and progress in n • United States 2006 m each member country. It scrutinises efforts to meet both • Korea 2006 e n domestic objectives and international commitments. • New Zealand 2007 t a The analyses presented are supported by a broad • China* 2007 l P range of economic and environmental data and lead • Belgium 2007 e r • Switzerland 2007 f to recommendations for further environmental and o sustainable development progress. • Denmark 2008 rm • Australia 2008 a A second cycle of Environmental Performance Reviews, • Hungary 2008 nc covering all member countries, will be completed •• TFuinrlkaenyd 22000089 e R in 2010. It focuses on environmental management, e • Greece 2009 v sustainable development and international • Luxembourg 2010 ie w commitments. • Ireland 2010 s * Non-OECD member country. l u x E m The full text of this book is available on line via this link: b www.sourceoecd.org/environment/9789264077270 O u Those with access to all OECD books on line should use this link: R www.sourceoecd.org/9789264077270 g SourceOECD is the OECD’s online library of books, periodicals and statistical databases. For more information about this award-winning service and free trials ask your librarian, or write to us at [email protected]. www.oecd.org/publishing iSbn 978-92-64-07727-0 -:HSTCQE=U\\W\U: 97 2010 01 1 P OECD Environmental Performance Reviews LUXEMBOURG ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT The OECD is a unique forum where the governments of 30 democracies work together to address the economic, social and environmental challenges of globalisation. The OECD is also at the forefront of efforts to understand and to help governments respond to new developments and concerns, such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, the CzechRepublic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The Commission of the European Communities takes part in the work of the OECD. OECD Publishing disseminates widely the results of the Organisation’s statistics gathering and research on economic, social and environmental issues, as well as the conventions, guidelines and standards agreed by its members. This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. ISBN 978-92-64-07727-0 (print) ISBN 978-92-64-07728-7 (PDF) Series: OECD Environmental Performance Review ISSN 1990-0104 (print) ISSN 1990-0090 (online) Also available in French: Examens environnementaux de l’OCDE : Luxembourg Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda. © OECD 2010 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. OECD Environmental Performance Reviews: Luxembourg 3 FOREWORD The principal aim of the OECD’s Environmental Performance Reviews programme is to help member countries improve their individual and collective performances in environmental management with the following primary goals: – to helpi ndividual governments assess progress; – to promote a continuous policy dialogue among member countries, through a peer review process; and – to stimulate greater accountability from member countries’ governments towards their public opinion, within developed countries and beyond. Environmental performance is assessed with regard to the degree of achievement of domestic objectives and international commitments. Such objectives and commitments may be broad aims, specific qualitative goals, precise quantitative targets or a commitment to a set of measures to be taken. Assessment of environmental performance is also placed within the context of historical environmental records, the present state of the environment, the physical endowment of the country in natural resources, its economic conditions and demographic trends. These systematic and independent reviews have been conducted for all member countries as part of the first cycle of reviews. The OECD is now engaged in the second cycle of reviews directed at promoting sustainable development, with emphasis on implementation of domestic and international environmental policy, as well as on the integration of economic, social and environmental decision making. The present report reviews environmental performance of Luxembourg. The OECD extends its most sincere thanks to all those who helped in the course of this review, to the representatives of member countries to the Working Party on Environmental Performance, and especially to the examining countries (Belgium and the United Kingdom) and their experts. The OECD is particularly indebted to the government of Luxembourg for its co-operation in expediting the provision of information and the organisation of the experts’ mission to Luxembourg, and in facilitating contacts with many individuals both inside and outside administrative and governmental structures. The present review benefited from grant support from Czech Republic and Switzerland. The OECD Working Party on Environmental Performance conducted the review of Luxembourg at its meeting on 7October2009 and approved its conclusions and recommendations. Rob Visser, Acting Director, Environment Directorate © OECD 2010 OECD Environmental Performance Reviews: Luxembourg 5 TABLE OF CONTENTS 1. CONCLUSIONS AND RECOMMENDATIONS......................................... 15 1. Environmental Management........................................................................ 16 Strengthening the implementation and efficiency of environmental policies..... 16 Air ............................................................................................................ 17 Water............................................................................................................ 18 Waste and materials...................................................................................... 19 Nature and biodiversity................................................................................ 20 2. Towards Sustainable Development............................................................... 22 Integrating environmental concerns into economic decisions...................... 22 Integrating environmental and social decisions........................................... 23 3. International Co-operation........................................................................... 25 Part I ENVIRONMENTAL MANAGEMENT 2. AIR AND WATER.......................................................................................... 27 Recommendations.............................................................................................. 28 Conclusions....................................................................................................... 28 Air ............................................................................................................ 28 Water............................................................................................................ 29 1. Air Management........................................................................................... 30 1.1 Air quality........................................................................................... 30 1.2 Air pollutant emissions....................................................................... 33 1.3 Assessment......................................................................................... 36 2. Water Management....................................................................................... 38 2.1 The state of resources......................................................................... 38 2.2 Water pricing...................................................................................... 44 3. Governance................................................................................................... 47 Selected Sources................................................................................................ 55 3. WASTE AND MATERIALS MANAGEMENT........................................... 57 Recommendations.............................................................................................. 58 Conclusions....................................................................................................... 58 1. Management and Action Framework........................................................... 59 1.1 Legislative and regulatory framework................................................ 59 1.2 Planning and implementation............................................................. 60 © OECD 2010 6 OECD Environmental Performance Reviews: Luxembourg 2. Current Situation.......................................................................................... 60 2.1 Objectives........................................................................................... 60 2.2 Trends in waste generation and management..................................... 63 3. Waste Reduction and Materials Recovery.................................................... 67 3.1 Municipal waste.................................................................................. 67 3.2 Preventing consumer waste generation.............................................. 71 3.3 Industrial, commercial and service waste........................................... 71 3.4 Optimising material flows and resource productivity........................ 74 4. Treatment and Disposal of Final Waste........................................................ 74 4.1 Municipal waste.................................................................................. 74 4.2 Non-household waste......................................................................... 75 5. Particular Flows............................................................................................ 75 5.1 Hospital and similar waste.................................................................. 75 5.2 Inert waste........................................................................................... 76 6. Financing and Coherent Management.......................................................... 76 6.1 Expenditure and costs......................................................................... 76 6.2 Funding for municipal waste management......................................... 76 6.3 Assessment......................................................................................... 78 7. Polluted Sites and Soils................................................................................ 79 Selected Sources................................................................................................ 81 4. NATURE AND BIODIVERSITY................................................................... 83 Recommendations.............................................................................................. 84 Conclusions....................................................................................................... 84 1. Objectives..................................................................................................... 85 2. Status of Species and their Habitats............................................................. 86 2.1 Terrestrial and aquatic species............................................................ 86 2.2 Habitats............................................................................................... 86 3. The Policy Framework for Nature Conservation and Biodiversity.............. 92 3.1 Institutional framework...................................................................... 92 3.2 Legislative framework........................................................................ 92 3.3 National Plan for Nature Conservation.............................................. 94 3.4 Funding frameworks........................................................................... 95 4. Protected Areas and Species........................................................................ 97 4.1 Protected areas.................................................................................... 97 4.2 Species management.......................................................................... 100 5. Conservation outside Protected Areas.......................................................... 100 5.1 Land use management........................................................................ 100 5.2 Territorial planning............................................................................. 102 6. International Co-operation........................................................................... 103 Selected Sources................................................................................................ 105 © OECD 2010 OECD Environmental Performance Reviews: Luxembourg 7 Part II SUSTAINABLE DEVELOPMENT 5. ECONOMY-ENVIRONMENT INTERFACE.............................................. 107 Recommendations.............................................................................................. 108 Conclusions....................................................................................................... 108 Integrating environmental concerns into economic decisions...................... 108 Strengthening the implementation and efficiency of environmental policies110 1. The Environment and Economic Growth..................................................... 110 1.1 The years2000-07: strong growth and decoupling?.......................... 111 1.2 The period2008-09: crisis and opportunities?................................... 114 2. Institutionalising Sustainable Development................................................. 117 2.1 Institutions.......................................................................................... 117 2.2 From PNDD1 to PNDD2.................................................................... 117 2.3 Assessment......................................................................................... 118 3. Sustainable Development in Practice: Market-Based Integration................ 119 3.1 Energy taxes........................................................................................ 119 3.2 Transport taxes.................................................................................... 121 3.3 Assessment......................................................................................... 122 4. Sustainable Development in Practice: Sector Policies................................. 123 4.1 Energy................................................................................................. 123 4.2 Transportation..................................................................................... 127 5. Environmental Policy Implementation......................................................... 129 5.1 Objectives........................................................................................... 129 5.2 Institutions.......................................................................................... 130 5.3 Legislation.......................................................................................... 132 5.4 Regulatory instruments....................................................................... 134 5.5 Economic instruments........................................................................ 137 5.6 Voluntary instruments......................................................................... 138 5.7 Territorial planning............................................................................. 139 5.8 Expenditure on environmental protection.......................................... 140 Selected Sources................................................................................................ 143 6. SOCIAL-ENVIRONMENTAL INTERFACE............................................... 145 Recommendations ............................................................................................. 146 Conclusions....................................................................................................... 146 1. Environment and Health............................................................................... 147 1.1 Policy objectives and institutions....................................................... 147 1.2 Health status and trends...................................................................... 150 1.3 Environment-related health risk factors.............................................. 151 © OECD 2010 8 OECD Environmental Performance Reviews: Luxembourg 2. Environmental Democracy........................................................................... 152 2.1 Access to environmental information................................................. 153 2.2 Production and dissemination of environmental information............ 153 2.3 Access to justice in environmental matters........................................ 154 2.4 Public participation............................................................................. 154 3. Local Initiatives............................................................................................ 155 4. Environmental Education and Awareness.................................................... 157 5. Employment and the Environment............................................................... 158 Selected Sources................................................................................................ 160 Part III INTERNATIONAL COMMITMENTS 7. INTERNATIONAL CO-OPERATION......................................................... 161 Recommendations.............................................................................................. 162 Conclusions....................................................................................................... 162 1. Official Development Assistance (ODA)..................................................... 165 1.1 Luxembourg sets the example............................................................ 165 1.2 ODA and environment........................................................................ 167 2. Trade and Environment................................................................................ 167 2.1 Multinational business guidelines...................................................... 167 2.2 Trade in hazardous substances............................................................ 168 2.3 Trade in endangered species............................................................... 171 3. Climate Change............................................................................................ 171 3.1 Objectives and trends.......................................................................... 171 3.2 The National Strategy......................................................................... 172 3.3 Post-Kyoto.......................................................................................... 176 4. Regional Co-operation................................................................................. 177 4.1 Frameworks for co-operation............................................................. 177 4.2 Transboundary waters......................................................................... 178 4.3 Air pollution....................................................................................... 182 Selected Sources................................................................................................ 185 © OECD 2010