Phasing-out fossil fuel subsidies in the Netherlands

Less CO2 and more state revenue for fair climate policies

Publication

Rodrigo Fernandez

Boris Schellekens

Albert ten Kate

4 September 2023

In this report, SOMO, Friends of the Earth Netherlands and Oil Change International, have, for the first time, done a bottom-up analysis of all identifiable fossil fuel subsidy measures in the Netherlands and have quantified these using the UNEP methodology for measuring fossil fuel subsidies. The researchers estimate the Dutch fossil fuel subsidies at €37.5 billion a year between 2020 and 2022, a sum much higher than previous estimates (ranging between €4 and €17 billion a year).

The report also uses an international model by the IISD(opens in new window) to calculate potential emission reductions from subsidy reform and partial reinvestment in clean energy, energy efficiency, social protection measures and climate finance.

This model shows that by ending fossil fuel subsidies by 2025 (as the Netherlands has promised to do as part of the EU and, thus as part of the G7), Dutch CO2 emissions can be reduced by up to 20% in 2030 – which would help get the Netherlands on track to meet its 2030 emission reduction target.