Industrial CO₂ tax brings in money for Dutch state for the first time

For the first time since its introduction, the industrial CO₂ levy has generated net revenue for the government in 2025. The Dutch Emissions Authority (NEa) estimates that companies will together pay between €37 million and €97 million in CO₂ charges.

The roughly 250 companies liable for the industrial CO₂ levy also receive so-called emission allowances, which function as exemptions permitting them to continue emitting CO₂.

Last month, the NEa allocated around 39.4 million emission allowances, but this was just below the industry’s total emissions of roughly 41.1 million tonnes of CO₂. As a result, companies fell short of sufficient coverage and must pay additional charges. The effective CO₂ levy comes out at €21.14 per tonne.

The Dutch government plans to scrap the CO₂ levy, addressing concerns that it puts Dutch companies at a competitive disadvantage compared with firms in other European countries. The exact timing and implementation of the abolition have not yet been determined.

Companies only pay the national CO₂ levy when the Dutch base price exceeds the European ETS price. In 2025, the Dutch base rate was €87.90 per tonne of CO₂, while the average EU ETS price stood at €66.76. The gap between the two determines the net levy of €21.14 per tonne.

Since 2022, the EU ETS price has remained above the Dutch national levy, meaning the effective charge for industrial facilities has effectively been zero in recent years.