Brussels, 25/03/2009 (Agence Europe) - In its report on Luxembourg's energy policy, published on 20 March, the International Energy Agency (IEA) welcomed the progress accomplished by the Grand Duchy since 2004 in deregulating its electricity and natural gas markets, and its active participation in developing the Central West European regional electricity system. Luxembourg was also praised for its revision of the requirements for energy efficiency in buildings and its projects for improving energy performance in all sectors. Its progress is also due to a support system for renewable energy sources and changed taxation to reflect C02 emissions from cars. On the other hand, the IEA underlines the difficulties Luxembourg has experienced in attaining its climate targets, particularly because of the geographical situation of the road transit country, as well as its small size which prevents it developing more ambitious targets on renewables. The IEA is therefore recommending that Luxembourg adopt a medium and long term climate strategy, which should include a special section on transport and exchanging certificates for renewables as part of the directive on renewable energy. The IEA also stresses the urgency of Luxembourg adopting a plan for ensuring its energy security, particularly oil supplies. More than 85% of its strategic oil stocks are held by neighbouring countries and more than half of its storage capacity could close over the next five years. Luxembourg is urged to improve this situation without delay. (E.H./transl.rh)