The Netherlands will also advocate in the EU Environment Council for an EU-wide abolition of all subsidies, premiums, and tax reductions for the use of fossil fuels by large companies.
Climate Minister Rob Jetten (D66) states in a parliamentary letter that the Netherlands cannot do this alone because it is bound by international tax and energy agreements. Some subsidies can be phased out quickly, others require more time, Minister Jetten said last Friday ahead of the ministerial council.
According to the minister, many subsidies must be phased out internationally, ‘so it requires a very broad approach.’ Therefore, he believes that the new European Climate Commissioner Wopke Hoekstra should take this up internationally at the upcoming global COP28 meeting in the United Arab Emirates (UAE) in early December.
It recently emerged that the Netherlands annually grants between 40 and 60 billion euros in tax advantages to companies for their use of oil, gas, and coal. These include large steel companies, inland shipping, greenhouse horticulture, coal-fired power plants, and oil refineries. Airlines pay no tax on kerosene in the Netherlands; this saves them more than 2 billion euros annually.
A parliamentary majority believes fossil fuel subsidies must be reduced. Other countries also give similar subsidies to companies. If the Netherlands abolishes them alone, companies could leave the country.
Environmental organizations, such as the activist group Extinction Rebellion, have recently taken action including the occupation of the A12 highway in The Hague.