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Luxembourg Launches €5M “Smart City” Funding Initiative

Luxembourg’s Ministries of Economy and Environment have introduced a €5 million funding program to support “Smart City” projects for municipalities and municipal unions. The initiative aims to encourage digital solutions for efficient resource and energy use, improving residents’ quality of life.

Eligible projects include smart parking systems, traffic light optimization, automated water level monitoring, and leak detection in pipelines. Financial support is capped at €500,000 per project, with higher co-financing available for joint applications or municipalities with fewer than 3,000 residents.

The two-phase application process will accept submissions in two rounds: the first by November 16, 2025, and the second by March 15, 2026. The program will run for two years.