Green Budgeting specifies which investments and policy measures of the annual and multi-annual budget follow an environmental purpose. Indeed, green budgeting practices in Luxembourg have been successful in introducing green awareness into policymaking and a steady improvement of the practices is observed. One example, being the introduction of a carbon tax in 2021, where half of the revenue collected is to be reinvested in green projects and the other half will support the poorest households to adapt to the green transition.