The government currently provides larger subsidies than previously thought despite its promise to phase out fossil fuel subsidies by 2025, a recent study by several climate action groups shows.
The study, carried out by Dutch climate action groups SOMO, Oil Change International and Milieudefensie, aimed to map out the total amount of fossil fuel subsidies granted by the Dutch government. It found that rebates were mainly given to larger companies, while SMEs got the short end of the stick.
“From shipping (€6.7 billion) to aviation (€2.4) and from fossil electricity (€5.4 billion) to the oil processing industry (€2.4 billion), large consumers receive rebates, tax breaks, exemptions, or favourable tax rates,” SOMO stated in a press release accompanying the study.
“These schemes come at the expense of small and medium-sized enterprises (SMEs). After all, small and medium-sized companies usually pay full price for their gas and electricity consumption,” it added.
The study estimates that the Netherlands granted a total of 31 fossil fuel subsidies amounting to roughly €37.5 billion a year between 2020 and 2022 – a significantly higher sum than previous estimates, which came in at €4 to €17 billion a year.
Opposition to fossil fuel subsidies made headlines back in May, as protests organised by climate action group Extinction Rebellion saw more than 6,000 protestors block a highway in The Hague.
The study called on the government to come up with a concrete plan to phase out fossil fuel subsidies in order to meet its self-declared 2025 deadline.
“Fossil subsidies cost billions in taxpayer money, exacerbate the climate crisis, and line the coffers of big polluters. This money can instead be used to insulate millions of homes, transition our energy system, and help countries internationally deal with the blows of the climate crisis,” Donald Pols, Director of Milieudefensie, stated.
“We want the House of Representatives to start phasing out fossil subsidies now. The climate cannot wait for a new coalition,” he added.
(Benedikt Stöckl | EURACTIV.com)
Read more with EURACTIV
Slovenia close to signing gas pipeline deal with HungarySlovenia and Hungary are expected to sign a memorandum on constructing a pipeline linking their natural gas networks in October, less than a year after the proposed project was first made public by the countries’ prime ministers.
Source: euractiv.com
