Even more subsidies for fossil fuels than previously assumed, up to €46 billion annually

Even more subsidies and tax breaks are flowing into the fossil sector than previously assumed. According to a calculation by the Ministry of Economy and Climate, these amount to 39.7 to 46.4 billion euros annually. This is stated in the documents that will be released on Budget Day, September 19.

Insiders confirm corresponding reports from NOS. This is only a sum of all the benefits of the use of fossil energy and raw materials. It does not include, however, the cost to consumers. The report also states that a large part of the benefits (about 17 billion) is specified in international treaties or European Union directives.

A recent research report by SOMO, Oil Change International, and Milieudefensie already came to a total of 37.5 billion euros. Outgoing Minister Rob Jetten (Climate and Energy) said at the time that this amount sounded familiar. In general, Jetten wants to eliminate fossil fuel rebates.

According to NOS, this affects large steel companies, coal-fired power plants, greenhouse nurseries, inland shipping and oil refineries. Airlines, for example, do not have to pay kerosene tax in the Netherlands, which earns them more than 2 billion euros per year.

In recent years, fossil benefits have also disappeared. According to Jetten, phasing out fossil fuel perks can't be done in one swoop. There has to be a phase-out plan for that, he says. "In this way we say goodbye to the old economy and create space for new jobs and prosperity," he posted on X. For a long time, it was unclear how many subsidies and tax breaks went to the fossil fuel sector.

Ik zei het afgelopen weekend en ik zeg het opnieuw: fossiele subsidies moeten worden afgebouwd.

Zo nemen we afscheid van de oude economie en geven we ruimte voor nieuwe banen en welvaart.#D66 #klimaatactie https://t.co/FZ6Ftqx1Cr

— Rob Jetten (@RobJetten) September 15, 2023

The climate action group Extinction Rebellion takes action against fossil subsidies by regularly blocking part of the A12 highway in The Hague. The climate activists recently announced they would occupy the highway section every day.