The European Commission has issued a decision not to raise objections to Luxembourg's State Aid scheme (SA.120921) aimed at promoting the transition to a net-zero economy. This scheme, operating under the Clean Industrial Deal State Aid Framework (CISAF) and Article 107(3)(c) of the Treaty on the Functioning of the European Union, will utilize direct grants as its aid instrument. The primary objectives are environmental protection and sectoral development, with the scheme authorized to run until December 31, 2030.

Companies operating in Luxembourg seeking to align with net-zero transition goals may be eligible for support through this scheme. Compliance officers should review the specific criteria and application process for direct grants under this framework. While the decision date is March 27, 2026, the notification date was November 7, 2025, indicating the scheme is under review and likely to be implemented soon. Entities should prepare to apply for funding if their activities align with the scheme's environmental and sectoral development objectives.