Dutch businesses slam proposed punitive tax on fossil fuels

Business associations have expressed concern over a proposed energy tax on fossil fuels in a letter to parliament claiming this could lead to a steep rise in costs due to a lack of alternative energy sources.

Last month, Climate and Energy Policy Minister Rob Jetten (D66/Renew) presented a package which aims to ensure the country meets its climate goals under the EU’s Fit for 55 package by introducing additional measures to reduce CO2 emissions.

“This is deeply unfair to thousands of business owners who want to reduce their gas consumption but cannot due to the overloaded electricity grid and lack of sustainable alternatives,” Ingrid Thijssen, head of employer’s association VNO-NCW, and Jacco Vonhof, head of MKB Nederland, stated in the letter.

The business associations are particularly concerned about the possible effect the measure could have on small and medium-sized businesses, as the price increase, estimated to be around 25 to 48 euro cents per cubic metre of gas, could threaten manufacturing companies in several regions.

The associations fear the measure could cause industrial companies to emigrate into neighbouring countries, Belgium and Germany.

The letter calls upon the government to better support small and medium-sized businesses, so they would “get a perspective for action to become sustainable”. It also urges the government to put into place the necessary infrastructure for the transition to green energy, including access to heat and hydrogen grids, as well as applying for permits in time, pointing to the nitrogen crisis that currently has the country in its grip.

Asked about the proposed tax, Jetten said he understands the business sector’s concerns and reassured entrepreneurs that access to alternative energy sources will soon be facilitated.

“Large consumers still receive a discount on natural gas consumption, but this will be slowly phased out. There will also be a lower tariff for the use of hydrogen, among other things,” Jetten said, according to AD.

“To ensure that companies can switch to renewable energy, considerable efforts are being made to expand grid capacity and the availability of renewable electricity, heat and hydrogen,” he added.

Despite their criticism, the associations reiterated their general support for the government’s endeavour to reduce CO2 emissions.

“Meeting our climate goals in this way cannot be the intention. We want green here rather than grey elsewhere,” they stated.

(Benedikt Stöckl | EURACTIV.com)

cover photo:Climate and Energy Policy Minister Rob Jetten (D66/Renew) presented a package which aims to ensure the country meets its climate goals under the EU’s Fit for 55 package by introducing additional measures to reduce CO2 emissions. [Shutterstock/Cristian Storto]