The primary objective of the Luxembourg Development Cooperation is the eradication of poverty, particularly in less developed countries. Its actions and projects are conceived in the spirit of sustainable development, which is reflected in its social, economic and environmental aspects – focusing mainly on men, women and children.

These actions are seen primarily as part of the implementation of the Millennium Development Goals by 2015. The main sectors of Luxembourg Development Cooperation's involvement are in the social domain: healthcare, education, including training and professional insertion measures, as well as integrated local development. Appropriate initiatives in the field of microfinance are both encouraged and supported, both on the conceptual or operational level.

At the same time the Luxembourg Cooperation is actively participating in the discussion on, and the defining of, new standards for the harmonisation and increased quality of international development aid.