Research: government misses out on 37.5 billion euros annually due to fossil fuel subsidies | Interior

Researcher Boris Schellekens of the Research Foundation for Multinational Enterprises (SOMO) calls the estimate still conservative. He and his colleagues did not take into account all costs of environmental damage. “We look purely at missed state revenues.” The researchers are convinced that their overview is the most complete to date.

The report, published on Monday, describes 31 schemes that in one way or another make the use of fossil fuels more economical. This usually does not concern money that the government transfers to the account of companies, but mainly tax discounts and exemptions. For example, large-scale consumers of natural gas do not have to pay energy tax on the majority of their consumption, and aviation and shipping are exempt from excise duty on kerosene and fuel oil. Oil refineries, coal-fired power plants and the steel industry also enjoy such tax benefits.

The biggest blow, 13.5 billion euros per year, is in the energy tax. It is degressive in the Netherlands. This means that companies that use more energy, relatively speaking, have to pay less and less tax on their consumption. “A perverse incentive” the researchers call it.

Large users from heavy industry contribute only 11 percent to the energy tax that the government collects from companies. While they consume almost three-quarters of ‘business’ natural gas. Small and medium-sized enterprises bear the bulk of the costs.

The organizations behind the research are calling for the fossil benefits to be phased out quickly. The tax money that this generates can then be spent, for example, on combating energy poverty by insulating homes.

Part of the money will not end up in the tax pot, because companies will “replace or reduce their fossil fuel consumption”. That is precisely the intention, according to the researchers, because this reduces CO2 emissions. If the subsidies are completely abolished, according to the report, this will save between 13 and almost 20 percent CO2 emissions, depending on how fast it goes. Schellekens: “With this you will achieve the climate goals for 2030 in one fell swoop.”