News item | 19-09-2023 | 3:30 PM
Investing in the future economy and the climate, both by the government and the business community, is necessary to keep the Netherlands liveable, prosperous and competitive. The economy is expected to recover in the second half of 2023, after which growth will continue in 2024. The Ministry of Economic Affairs and Climate (EZK) will invest extra in sustainability and digitalization in the coming years. This is essential for the financial resilience of all Dutch people, a strong business community, but also to continue to make progress with the implementation of the set climate goals and the energy transition. In addition, we are working hard to make damage handling and strengthening homes in Groningen milder, easier and more humane.
Investing in entrepreneurship, innovation and economic security
In addition to a purchasing power package, the government is making targeted investments in entrepreneurship, innovation and economic security. For example, the budget of the WBSO innovation scheme (Research and Development Promotion Act) has been increased incidentally and structurally. With this scheme, entrepreneurs can research new innovations and develop ideas more quickly into successful products and services.
In addition, the Minister of Economic Affairs and Climate will announce on Budget Day that €100 million will be made available to strengthen the economic security of the Netherlands. This concerns a budget that can be used to keep sensitive technologies, innovations and associated companies and vital providers in the Netherlands. For example, if regular legislation or financial resources are inadequate to prevent unwanted parties from gaining control or influence.
There is also an additional budget available for Dutch startups that have the potential to grow into a scale-up. EZK contributes € 100 million to the so-called it European Tech Champions Initiative (ETCI). With this financing, innovative Dutch companies can make up for the shortage of scale-ups. Through the National Growth Fund (€ 20 billion), the government will continue to promote the renewal and sustainable growth of our economy through public investments through existing projects and with a fourth allocation round in 2024.
Sustainability and energy system
Energy prices have fallen since last year, making fixed energy contracts available again at rates below the price ceiling. Yet energy prices are still much higher than before the war in Ukraine. The Emergency Fund is being extended to help people who can no longer pay their energy bills. The price ceiling for energy and the temporary scheme for block connections expire at the end of this year.
This spring, the government announced a climate package to achieve the climate goals by 2030. These measures have been incorporated into the budget and tax plan for 2024. With the budget for 2024, the government proposes to allocate € 11.8 billion from the Climate Fund. The allocations from the Climate Fund are used to invest in, among other things, the necessary energy infrastructure for the future energy system, scaling up sustainable energy and hydrogen and making industry more sustainable.
The budget of the Investment Subsidy for Sustainable Energy and Energy Savings (ISDE) will be increased by €1.38 billion for the coming years. This is a subsidy scheme for making homes or business premises more sustainable, for example for insulation measures (hybrid) heat pumps, solar boilers, connections to a heating network and an electric cooking facility.
The government will again make subsidies available for the SDE++ scheme in 2024 and 2025. The SDE is the most important scheme with which the government stimulates the production of sustainable energy and the reduction of CO2 emissions. The total budget is determined when the scheme is opened.
To continue to encourage entrepreneurs to invest in sustainability, the Energy Investment Deduction (EIA) for entrepreneurs will be extended by 5 years – until 2028. The EIA makes it more attractive for entrepreneurs to invest in energy-saving and sustainable assets. The deduction percentage will be 40% from January 1, 2024.
Groningen
The Cabinet wants to stop gas extraction in Groningen from October 2023. In April 2023, the Cabinet presented ‘Nij began’, in response to the Parliamentary Inquiry into Natural Gas Extraction in Groningen. It contains 50 measures to make damage handling and strengthening homes milder, easier and more humane. The costs of this are included in the budget of the Ministry of Economic Affairs and Climate.