3FOOD

Third Industrial Revolution Consulting Group
Figure 10: Schematic View of a PV/Storage Hybrid System for Community Grid Electrification
Action Plan for SusTech Sector Financing
The development of a SusTech sector—analogous to Luxembourg’s financial technology
(FinTech) sector—would not only aid in the transition from the current fossil-fuel based
economy to an economy powered by sustainable energy. It would also result in job growth for
both vocational and knowledge workers. The energy transition requires ongoing development
in the area of energy conversion and storage technologies, as well as experimentation with new
products and services enabled through advancements in smart grid infrastructure. Enabling a
SusTech sector within Luxembourg will assist in the creation of new economic activity and build
new businesses locally (as opposed to importing). The development of a viable SusTech sector
in Luxembourg can be supported through projects recommended by the Finance WG (e.g., the
use of blockchain technology, the establishment of a secure data vault for smart contracts).
However, two challenges will need to be addressed if this vision for Luxembourg’s SusTech
sector is to be realized:
Increase R&D expenditures. R&D intensity in Luxembourg, as measured by R&D
expenditures as a percentage of GDP, has been declining since the turn of the century. 22
While public R&D intensity has increased, business R&D intensity has dropped
dramatically, as has the sum of the two. This trend will have to be reversed if a viable
SusTech sector is to be created.
Create a favorable environment for entrepreneurship. The Finance Working Group has
identified the need to further encourage development of the entrepreneurial culture in
Luxembourg. 22 While initiatives to encourage startups and draft legislation to facilitate
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