Conventions

FEDER / REACT-EU

The project

The COVID-19 pandemic has severely affected the European Union in terms of health, social, and economic aspects. In response, the European Union has defined a recovery plan worth almost €50 billion, ‘Next Generation EU’. This plan, which is part of the ERDF (European Regional Development Fund) and REACT-EU (Recovery Assistance for Cohesion and the Territories of Europe) projects, is a testament to the EU's commitment to repairing the damage caused by the crisis and supporting recovery in the Member States.

In this context, the Grand Duchy of Luxembourg is receiving a financial contribution from the ERDF as part of the EU's ‘Investment for Growth and Employment’ 2014-2020 programme, which is designed to ‘help repair the damage caused by the crisis engendered by the COVID-19 pandemic and prepare for a green, digital and resilient economic recovery’.

The ERDF co-financing takes the form of a €35 million grant to subsidise the electrification of the General Road Transport Scheme (RGTR - Régime général des transports routiers) bus network. To this end, François Bausch, Deputy Prime Minister, Minister for Mobility and Public Works, and Franz Fayot, Minister of the Economy, signed an agreement.

Electrification of the RGTR bus network

One of the Government's priorities is to combat climate change, in particular by reducing CO2 emissions from combustion engine vehicles. Luxembourg's commitment is reflected in its ratification of the Paris Climate Agreement, which imposes strict operating conditions. With this in mind, the government programme of 3 December 2018 provides for the complete electrification of the RGTR network by 2030: ‘Pilot projects for electric bus lines will be continued with the aim of achieving zero emissions on the regional bus network of the General Road Transport Scheme (RGTR) in 2030’.

In September 2020, the Department of Mobility and Transport called for tenders to operate RGTR public road transport services. This contract takes account of these expectations by providing for the electrification of several bus routes either from the outset or during the term of performance of the agreement in question. This objective is in the spirit of Directive (EU) No 2019/1161 of the European Parliament and of the Council of 20 June 2019, amending Directive 2009/33/EC on the promotion of clean and  energy-efficient road transport vehicles, as the State of the Grand Duchy of Luxembourg intends to promote and stimulate the market for clean and energy-efficient vehicles.

In 2021, the RGTR bus network in Luxembourg had 465 public and school bus lines, with more than 9,000 daily journeys on weekdays and 81.5 million km travelled. In 2022, the number of passengers increased by 26% compared with 2021.

In 2022, the fleet will comprise a total of 1,396 buses, including the reserve, of which 158 will be electric. This number represents 11% of the RGTR fleet in 2022. By the end of November 2023, the number of electric buses had risen to 327. By 2024, the electrified network will be spread over 77 public bus routes. This development is closely linked to the subsidy of the electrification of the RGTR network by the ERDF/REACT-EU programme.

The buses put into service and eligible for ERDF co-financing are of 3 types, namely ‘midibuses’ (length 11m), ‘standard’ low-floor buses (14m), and ‘articulated’ low-floor buses (19m).

The ‘E-BUS RGTR’ project was therefore selected by the ERDF/REACT-EU to benefit from this co-financing, as it fits perfectly with the programme in question. The financial contribution began on 17 July 2022 with the entry into force of the new public service contracts for the operation of the RGTR network.