Study confirms need to redirect billions in Netherland’s fossil fuel subsidies

FOR IMMEDIATE RELEASE

Contact: 

Nicole Rodel, Oil Change International –  nicole@priceofoil.org 

Laurie van der Burg, Oil Change International – laurie@priceofoil.org 

 

Press reaction: Study confirms need to redirect billions in Netherland’s fossil fuel subsidies

12 October, Netherlands – A study published today by Planbureau voor de Leefomgeving (PBL) and the Netherlands bureau for economic analysis (CPB) underlines the importance of addressing billions in Dutch fossil fuel subsidies. The study estimates these subsidies at €35.2 billion a year when taking the environmental damage caused fully into account. The Dutch Ministry of Economic Affairs and Climate previously estimated the Netherland’s fossil fuel subsidies at between €39.7 and 46.4 billion a year – a sum that accounts for more than 4% of the Netherland’s Gross Domestic Product (GDP). 

The study comes shortly after the adoption of a parliamentary resolution committing the outgoing Dutch coalition government to develop a number of scenarios for ending these fossil fuel subsidies that also address options for mitigating any negative impacts on citizens of subsidy removal. These should be presented before the end of 2023. While the Netherlands has committed to end “inefficient fossil fuel subsidies” by 2025 as part of the EU and the G7, it has yet to present a comprehensive plan for ending fossil fuel subsidies.

Laurie van der Burg, co-Manager Global Public Finance at Oil Change International, says:

“Our home is burning, but countries worldwide, including the Netherlands, keep adding fuel to the fire with billions in subsidies for fossil fuels. This props up industry profits, while households struggle to pay their energy bills. There is no time to lose, and the government must take urgent action to end this madness. Ending fossil fuel subsidies presents a massive opportunity to shift billions to pay for energy efficiency, renewable energy, and climate finance, as well as to social protection measures that can mitigate any harmful impacts on households. If the Netherlands takes action now, it has an opportunity to bring other countries along at COP28, the upcoming UN climate conference in Dubai.” 

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