On 2nd December 2025, members of the Cluster for Logistics gathered at EY Luxembourg for an insightful forum on Decarbonization & Tax Strategy in Transition. The discussions highlighted how sustainability and tax frameworks are shaping the future of logistics in Luxembourg and beyond.
🚛 Why Sustainability Matters for Logistics
• Logistics is at the heart of global supply chains, and sustainability is no longer optional—it’s a strategic imperative.
• Key sustainability trends include digitalization, green energy adoption, and circular supply chain models.
• European and international regulations are accelerating the transition, requiring companies to adapt proactively.
Luxembourg’s Path Forward
• The Integrated National Energy and Climate Plan 2021–2030 (PNEC) sets ambitious targets for emissions reduction and energy efficiency.
• Local initiatives are driving sustainable logistics, from multimodal transport hubs to green fleet incentives.
• Decarbonization means reducing carbon intensity across operations—through electrification, renewable energy, and smarter resource use.
🛠️ Transition & Risk Mitigation
• Key pillars of a concrete transition plan: governance, measurable targets, innovation, and stakeholder engagement.
• Practical steps for decarbonization include energy audits, investment in clean technologies, and transparent reporting.
• The Voluntary Sustainability Reporting Standard for SMEs (VSME) was introduced as a tool to help smaller enterprises align with sustainability goals.
• AI is emerging as a powerful enabler, helping organizations operationalize performance while addressing sustainability challenges.
💶 Tax Strategy in Transition
The second part of the forum focused on fiscal reforms and compliance:
- New Investment Tax Credit (ITC): modernization to support digital transformation, ecological transition, and energy efficiency.
- ITC key figures for 2024 were presented, showing strong incentives for sustainable investments.
- Logistics & Transfer Pricing: key points for cross-border operations.
- VAT treatment of transport services: recent CJEU cases and upcoming changes to watch.
- Direct Tax Compliance: ensuring businesses remain aligned with evolving frameworks.
✨ The forum reinforced that logistics is both a driver and beneficiary of sustainability and tax innovation. By embracing decarbonization and leveraging new fiscal tools, Luxembourg’s logistics sector is positioning itself at the forefront of Europe’s green and digital transition.
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