In terms of residential buildings, an ambitious timetable has been drawn up to gradually increase the energy performance requirements for new residential buildings. Since 1⁰ January 2017, all new constructions for residential use must meet the AA energy class standard, which makes Luxembourg one of the precursors of the EU to impose such a criterion. Since energy renovation is often quite expensive, the Government has set up a climate bank since January 2017”. This initiative is part of the &quot;Klimabank an nohaltegt Wunnen&quot;&gt; package, published at the end of 2016. By implementing these new provisions, the Government aims to promote both the sustainable construction of new residential buildings, energy sanitation of existing residential buildings and the development of renewable energies in the field of housing (see under the chapter Sustainable housing). The second Action Plan to reduce CO2 emissions includes measures relating to transport, buildings, energy efficiency and renewable energies, industry, information and awareness, advice and energy training. This second Action Plan will soon be four years old, and it does not cover the new commitments of the Paris agreement and those proposed within the EU by 2030. Luxembourg will thus prepare during the year 2017 a third Action Plan to reduce CO2 emissions which will also include a longer-term vision and objectives (2050) for the decarbonisation of the Luxembourg economy. For functional buildings, in particular new buildings, the requirements in terms of energy performance will be gradually reinforced, in particular by new methods of financing intended to carry out the gradual renovation of all existing buildings on the basis of an inventory of state buildings.