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Luxembourg is one of the smallest countries in the world. At 2,586km², it鈥檚 less than half the size of Prince Edward Island.

In such a small country, energy is a big challenge, said its Minister of the Economy Franz Fayot in an interview with Prof. Karl Moore for Forbes.com. Luxembourg doesn鈥檛 have fossil fuel resources, or a lot of sunshine to fuel solar panels. With such a limited amount of land, there isn鈥檛 even much space for wind turbines. That has led the tiny country to invest in energy efficiency.

It is encouraging its citizens to adopt e-mobility, and to use geothermal energy sources in new construction projects. And through its innovation agency Luxinnovation, the country is investing in innovative companies, including energy projects beyond its own very limited territory.