Menu Close
BGL logo The bank for a changing world

 

Take Advantage of the Climate Loan in Luxembourg 

A loan with preferential rates

Supported by the Luxembourg government, this loan offers advantageous financing conditions.

Eligible energy renovation works

This loan can finance sustainable renovations such as insulation, installation of efficient heating systems, or solar panels (*).

Can be combined with "Klimabonus" grants

This financing can be supplemented by additional financial aid through the "Klimabonus" grants.

What Is the Climate Loan?

The Climate Loan is a financing scheme supported by the Luxembourg government. It aims to encourage energy renovations through an interest subsidy on the loan.

Conditions for granting the interest subsidy:
  • The loan must be secured by a mortgage
  • The property must be located in Luxembourg
  • The property must have served as a primary residence for at least ten years
Main advantages:
  • Subsidized interest rate capped at 1.5% (not exceeding the loan’s effective rate)
  • Maximum eligible amount: EUR 100,000
  • Subsidy duration: 15 years from the first installment
  • Total subsidy capped at 10% of the borrowed capital allocated to the works

How to Obtain a Climate Loan?

The Climate Loan is intended for homeowners wishing to carry out sustainable renovations in a property over 10 years old, used as a primary residence in Luxembourg. It is offered by approved banks such as BGL BNP Paribas and must be secured by a mortgage.

 

un.png


Schedule an appointment with an advisor

Meet with your advisor to discuss your project and assess possible financing solutions.

  
deux.png
Prepare your application 

Obtain certified energy advice, establish your Energy Performance Certificate (EPC), and gather validated quotes for the planned works.

  
numero-trois.png
Start your renovation works

Once financing is approved, begin your renovation works based on the quotes validated by the energy advisor.

  
numero-4.png
Activate the subsidies 

After completing the works and paying the invoices, you can apply for Klimabonus subsidies.

  
Learn more
See all steps on Guichet.lu

Public funding opportunities to strengthen Your Climate Loan 

The Luxembourg government actively supports energy renovation works through several public subsidies. These can be combined with your Climate Loan to finance your projects under favorable conditions.

To learn more about eligibility, procedures, or estimate your subsidy, the websites guichet.lu and klima-agence.lu offer simulators, practical advice, and all the necessary information.

 

What Are the Main Government Subsidies? 

  • Climate Loan with Subsidy

    Finances renovations of homes over 10 years old. The government covers part of the loan interest, up to 10% of the amount borrowed from the bank.

  • "Klimabonus" Grants

    Direct aid for insulation, ventilation, renewable installations (heat pump, solar, etc.), or window replacements.

  • Energy Advice

    Mandatory in some cases, this diagnosis by a certified advisor is subsidized by the government and guides you toward coherent and effective renovation choices.

  • Renewable Electricity Bonus

    Producing your own energy? The government supports you with a bonus for each kWh injected into the national grid.

  • Reduced VAT Rate

    A super-reduced rate of 3% for energy renovation works, up to EUR 50,000 per property.

Good to Know

Not all works benefit from the reduced VAT rate. For example, fitted kitchens, special technical equipment such as alarm systems, interior blinds and curtains, or landscaping are not eligible. The guichet.lu portal lists all available energy renovation aids. Take time to research thoroughly before starting your works, especially if you plan to include these subsidies in your renovation budget.

Learn more on Guichet.lu

Learn More About "Klimabonus" Grants

"Klimabonus" grants are financial aids offered by the Luxembourg government to encourage sustainable energy renovations. They cover part of the costs of certain works, depending on their nature, energy performance, and the type of property.

Note: To benefit from the interest subsidy linked to the Climate Loan, you must first have obtained a "Klimabonus" grant for the works financed by this loan.

Additionally, some works require mandatory certified energy advice before starting the project.

See eligible works

Works Eligible for Klimabonus 

  • Building Sanitation
    • Insulation of exterior walls
    • Roof insulation
    • Insulation of walls against ground or unheated areas
    • Insulation of the upper slab against unheated attic
    • Insulation of the lower slab against unheated basement or exterior
    • Replacement of windows and patio doors
  • Technical Installations
    • Installation of controlled ventilation (centralized or decentralized)
    • Solar thermal and photovoltaic installations
    • Installation of a heat pump, boiler, wood or pellet stove, or connection to a district heating network

How to Apply for "Klimabonus" Grants?

  1. Get personalized advice
    Contact a certified energy advisor to define your works and priorities.

  2. Submit your application
    Apply for preliminary approval on Guichet.lu

  3. Monitor implementation
    Hire a certified company and monitor implementation with your energy advisor.

  4. Finalize your application
    Receive the contractor’s invoice and final report, then request the Klimabonus payment.
Apply for Klimabonus grants
Subsidies simulator from Klima-Agence

Special Energy Advisory Offer with Actif Consulting

Planning to sell, rent, or renovate a property in Luxembourg? It’s essential to obtain an Energy Passport (CPE) or consult a certified energy advisor. This helps assess your property’s energy performance and enhance your project’s value.

Thanks to our partnership with the certified energy consultancy firm Actif, benefit from a full energy audit or expert advice.

From 09/10 to 31/12 2025, enjoy an exclusive 20% discount on an energy audit or consultation for your property.(1)

 

Learn more about energy advice
Contact us

Frequently Asked Questions 

  • icone faq question
    What Is Energy Renovation?

    Energy renovation includes all works that allow a building to:  

    • consume less energy
    • better withstand climate and weather hazards (extreme heat, cold, storms), and floods
    • reduce its carbon footprint

    Examples of such works: 

    • replacing an old heating system with a more efficient model
    • insulating walls, roofs, floors, or windows to prevent heat loss
    • installing solar panels
    • setting up appropriate ventilation
    • etc.

    These transformations aim to reduce energy consumption and greenhouse gas emissions for more sustainable housing.

  • icone faq question
    What’s the Difference Between a Climate Loan and an Energy Renovation Loan?

    Climate Loan

    Energy Renovation Loan

    Specific to energy works in homes over 10 years old

    Usable for any type of renovation, energy-related or not

    Subsidized by the Luxembourg government

    No specific public support

    Mortgage required

    Can be granted without collateral

    Energy diagnosis (EPC) required

    Energy diagnosis not mandatory
  • icone faq question
    Is Energy Advice Mandatory?

    In some cases, energy advice is not mandatory—for example, solar panels or a boiler equipements. You may however, still be eligible for susidies. Only works related to the building’s external envelope require energy advice.

Do you have a sustainable renovation project?

Our experts are available to advise you.

Schedule an appointment

(*) Depending on the nature, energy performance, and type of property concerned.

(1) From 09/10 to 31/12 2025. Offer subject to terms and conditions and approval of your application by the bank.

May be worth looking into…

Energy Performance Certificate (CPE)

Learn everything about this essential document for your real estate projects.

Learn more

Energy Renovation: Perceptions and Beliefs of Luxembourgers

Discover how Luxembourger’s view energy renovation, based on a unique study across seven European countries.

Learn more

Fixed, Variable, Adjustable Rates: Pros and Cons

Found your ideal home? Understand rate types to choose the best financing.

Learn more