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The Netherlands gives more tax breaks to companies for using oil, gas and coal than expected. The so-called fossil subsidies are worth an annual sum of between €39.7 billion and €46.4 billion, according to leaked Budget Day documents from Climate Minister Rob Gitten.
The Ministry had previously assumed an amount of 4.5 billion euros, while the accounts of private environmental organizations reached 37.5 billion euros.
There have been heated debates recently about fossil subsidies, which are financial arrangements that favor the use of fossil fuels. bee more The use of oil, gas or coal is often relative less The tax to be paid.
This concerns major steel companies, inland shipping, greenhouse horticulture, coal-fired power stations and oil refineries. Airlines, for example, do not pay taxes on kerosene in the Netherlands, which generates more than 2 billion euros annually, according to leaked documents.
Environmental organizations, such as the action group Extinction Rebellion, have recently taken action, including occupying the A12 motorway in The Hague.
The House majority and outgoing Economic and Climate Affairs Minister Çeten believe that fossil subsidies should be phased out, but there is debate about the pace and how to do this. Gitten also initially wanted to identify the financial incentives involved, and asked the Central Planning Bureau (CPB) and the Netherlands Environmental Assessment Agency (PBL) to conduct an inventory. All types of arrangements are included.
The piece is mainly descriptive and Gitten has not yet presented a business plan. Clearly, the phasing out of disguised subsidies amounting to €6.2 billion has begun. Greenhouse horticulture will receive fewer tax benefits and the car tax exemption for older cars will be reduced from 2028.
“Fossil fuel subsidies must be phased out,” Cetin answers. “This is how we say goodbye to the old economy and create space for new jobs and prosperity.” X On the news that fossil subsidies are higher than expected.
“The then Cabinet also said this in 2009. Since then, government support for fossil fuels has increased,” Extinction Rebellion also responds to X On the minister.
“It’s always worse than we think,” Lucas Winnipes, spokesman for Extinction Rebellion, told NOS. He believes this will provide more incentive for Action Group supporters to demonstrate. “I expect more people will stay on the A12 with more determination.”
“We cannot wait for a new climate agreement, because that could take another year,” says Winnipes. “We will continue until action is taken.” Never mind that some disguised subsidies are sometimes set at the international level. “The whole world is experiencing a climate crisis”
The VNO-NCW business association wants to wait until it becomes known on Budget Day what would be considered fossil subsidies. The employers’ organization says phasing out fossil subsidies is essential, but must be done carefully to prevent job losses and higher prices. “Many entrepreneurs do not yet have alternatives due to, among other things, the clogged electricity grid and the lack of other alternatives.”
How do fossil subsidies work? NOS op 3 explains it to you in the video below:
Pollute more, pay less… How!?
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