Dutch State gave Philip Morris over €1 million to subsidize carbon improvements
The Dutch State paid cigarette manufacturer Philip Morris over €1 million in subsidies over the past three years, RTL Z discovered in a database of granted subsidies. The subsidies to the Big Tobacco company, meant for climate investments to reduce CO2 emissions, seem to be at odds with the government’s strong policy to discourage smoking.
Philip Morris received €373,000 in 2023, €560,000 in 2024, and €103,000 in 2025, according to the broadcaster. It also received a subsidy in 2022 but paid that money back because the intended project fell through.
The tobacco company received the subsidies through the VEKI scheme, intended to help industrial companies accelerate their climate investments and become more sustainable. The money is specifically for climate investments that won’t pay for themselves within five years.
Philip Morris used the subsidies on its factory in Bergen op Zoom, which currently manufactures components for e-cigarettes and parts for regular cigarettes. The subsidy was granted to replace a natural gas installation with a heat pump system to reuse residual heat from the production process.
Subsidizing a cigarette-producing factory seems at odds with the Dutch government’s policy to discourage smoking with high excise duties and fewer points of sale. The Ministry of Climate and Green Growth told RTL Z that the Cabinet’s prevention policy is “separate” from the subsidy scheme for sustainability investments, and that Philip Morris complies with the rules for the subsidy and is therefore eligible for it.
“The production of tobacco products is permitted in the Netherlands. As long as that production takes place, it is desirable from a climate and energy policy perspective that it is carried out as energy-efficiently and climate-friendly as possible,” the Ministry said. "The subsidy was granted for a sustainability investment that leads to reduced natural gas consumption and lower emissions. The subsidy is not intended to stimulate the production of cigarettes."
