The Luxembourg Negative Emissions Tariff (L-NET) is carbon dioxide removal (CDR) demand support legislation developed in 2021-2022 by OpenAir members in collaboration with Sven Clement, Member of the Luxembourg Parliament.
Summary
The Luxembourg Negative Emissions Tariff (L-NET) is carbon dioxide removal (CDR) demand support legislation developed in 2021-2022 by OpenAir members in collaboration with Luxembourg Member of Parliament Sven Clement.. The legislation was introduced by Deputy Clement in the Luxembourg Parliament (i.e. Chamber of Deputies) in November 2022.
The proposed policy borrows from several general features of the renewable energy feed-in tariff (FIT) model which has been successfully implemented in multiple EU member states (most consequentially, Germany) and other nations globally to drive investment, adoption and cost reduction for solar and wind technologies.
Advocacy
The L-NET was introduced in Parliament in November 2022
Links
* Legislation copy on Github (English version)
Mission Team
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OpenAir Mission Moderator: Chris Neidl (Discord/Discourse: @Neidl_c)
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OpenAir Advocates: Eduardo Eischen (Discord: @Eduardo_97)
Next Weekly Mission Meetup
2022-12-28T14:00:00Z (Every Wednesday on Zoom)
Policy Overview
Summary
As law the L-NET would direct the state to implement a performance-based incentive program to drive investment in emerging negative emissions technologies (NETs). The policy’s design draws inspiration from key elements of the renewable energy feed-in tariff (FIT) FIT, including:
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A direct payment scheme that compensates diverse project types for the removal and/or storage of carbon dioxide (mt CO2) from the atmosphere. Unlike with competitive procurement or advanced market commitment (AMC) models, prospective project developers will be automatically eligible for L-NET payment contracts provided that 1. projects comply with eligibility criteria established by the Ministry of the Environment, and 2. annual budget allocations for the L-NET program have not been exhausted for the given year in which the application has been submitted.
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Multi-year contracts for project owners that will ensure sustained payment for services rendered, set at fixed rates or ‘tariffs’ for mt CO2/removed that provide a guaranteed return and therefore investor certainty.
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Chain-of-Custody based eligibility that limits CDR technology choices to those that can be metered and reported in real-time.
Videos
- L-NET Announcement and Interview - Deputy Sven Clement - November 2022
- L-NET Straw Proposal and Policy Overview - January 2022
- L-NET Mission Kickoff - Sven Clement and Dr. Greg Nemet.