Dutch government ends CO2 subsidy talks with Shell, BP and other major firms
Demissionary Climate Minister Rob Hermans informed the Tweede Kamer that the Dutch government has halted negotiations on CO2 reduction subsidies with several large industrial companies. The move affects some of the country’s biggest firms, including Shell, BP, Air Liquide, Air Products, ExxonMobil, LyondellBasell in Rotterdam, and Dow Chemical in Terneuzen, NOS reports.
These negotiations were part of a tailored subsidy program aimed at encouraging the 30 largest industries in the Netherlands to implement climate measures beyond existing legal requirements. Despite three years of talks with all 30 companies, progress has reportedly been limited. Only the salt manufacturer Nobian has finalized agreements with the government.
Minister Hermans clarified that ending negotiations does not mean the companies will stop reducing emissions. For example, Shell, ExxonMobil, Air Products, and Air Liquide continue collaborating on the Porthos project, which involves storing captured CO2 in an empty gas field beneath the North Sea.
The government will now continue talks only with a smaller group of companies, with the primary focus on Tata Steel IJmuiden. Hermans described the negotiations with Tata Steel as “pressing and serious.” The steelmaker recently submitted its Environmental Impact Report outlining plans to reduce coal use by switching half of its steel production to gas or hydrogen.
Tata Steel’s plan requires billions of euros in Dutch state aid, but the availability of this funding remains uncertain. The European Commission has joined discussions concerning possible state support to Tata Steel. The government has set strict conditions for any subsidies, including reducing environmental damage and health risks for residents near the steel plant.
