A report released Monday by a platform that analyses multinational corporations and by two organizations advocating for a transition to renewable energy, the Dutch government spends about 37.5 billion euros ($40.5 billion) per year in subsidies to companies that utilize fossil fuels.
The research outlines 31 government subsidies, mostly tax incentives, that lower the cost of producing and using fossil fuels, including oil, coal, and gas, for businesses. According to the research, the Dutch maritime industry receives the largest share of government funding, amounting to 6.7 billion euros in benefits. Tax reductions and other incentives totaling 5.3 billion euros are provided for electricity produced using fossil fuels, it continues.The Centre for Research on Multinational Corporations, also known as SOMO, the Dutch branch of Friends of the Earth and Oil Change International, produced the paper. It demands that the subsidies be phased down even before the country’s general election on November 22. According to Donald Pols, Director of Friends of the Earth Netherlands, “fossil subsidies cost billions in taxpayer money, exacerbate the climate crisis, and line the coffers of big polluters,” and the money would be better used to insulate homes and fund the transition to sustainable energy sources. “We demand that the House of Representatives immediately begin to phase out fossil fuel subsidies.
A new coalition cannot wait while the climate suffers. Rob Jetten, the minister of climate and energy, admitted that the nation must stop the subsidies but provided no timetable in a statement on Monday. “It is vital to clearly and absolutely map out exactly which further financial incentives are involved,” he added. “The government has already discontinued a number of programs.
According to Jetten, the ruling coalition, which is acting in that capacity until a new coalition is put together following the election “is working on a complete overview of schemes that lead to financial benefits for fossil energy use and is making an estimate of the total size.” Later this month, according to him, the yearly budget will include more information. The study was released days before the latest in a series of rallies by the environmental organization Extinction Rebellion, during which protesters blocked a busy road next to the Dutch parliament building.
