Despite climate agreements, the Netherlands supports the fossil sector with 7.6 billion euros a year
Although outgoing economics minister Henk Kamp stated in May of this year that fossil fuels are not subsidised in the Netherlands, a report out today shows that this is clearly not the case. The report. ‘Phase-Out 2020: Monitoring Europe’s fossil fuel subsidies’, by the Overseas Development Institute (ODI) and Climate Action Network Europe (CAN-Europe), says that the Netherlands is supporting the fossil sector at home and abroad with more than 7.6 billion euros a year (1). The Netherlands made international agreements as long ago as 2009 (2) to ban subsidies for fossil fuels. Environment NGO Milieudefensie and Both ENDS – both members of CAN-Europe – call attention to these findings because they find it unacceptable that the government perpetuates our dependence on fossil fuels in this way.
The report provides an overview of the substantial sums of money that eleven EU member states and the EU institutions continue to invest in the production and consumption of fossil fuels. In total, these investments come to 112 billon euros a year. The report concludes that most countries, including the Netherlands, have no concrete plans to phase out their fossil fuel subsidies.
“The government already has its work cut out to achieve the Paris goals,’ says Milieudefensie director Donald Pols. ‘So we shouldn’t be pumping money into the fossil sector. We can better invest the money in sustainable energy supplies – an area in which we are lagging seriously behind. Then we can also stop extracting gas in Groningen more quickly.”
The biggest fossil fuel subsidy in the Netherlands is the energy tax exemption for air transport and shipping, sectors that are way behind in terms of sustainability. The exemption poses a serious threat to achievement of the Paris goals, and costs the Netherlands 3.5 billion euros in lost tax revenues every year. The government also supports the oil and gas production industry in the Netherlands to the tune of 144 million euros a year. Investments by companies in the fossil sector that are largely in the hands of the state amount to 946 million euros a year.
The total amount with which the Netherlands supports the fossil industry every year is most probably much higher than the 7.6 billion euros calculated in the report. For almost half of the support measures the researchers identified, they could not determine exact amounts due to lack of transparency. Milieudefensie and Both ENDS find that unacceptable, as without transparency, it is almost impossible to determine whether the Netherlands is complying with its international agreements.
The Netherlands also supports the fossil fuel sector abroad with more than two billion euros a year. “It does this mainly in the form of export support,’ says Niels Hazekamp, policy advisor at Both ENDS. “The Dutch economy is strongly focused on exports and the government supports companies that are active abroad with, for example, export credit insurance to reduce their financial risks. By far the greatest share of export credit insurance goes to oil- and gas-related projects, while the Netherlands should really be supporting sustainable and innovative projects.”
For more information:
The full report Phase-Out 2020: Monitoring Europe’s fossil fuel subsidies
The executive summary of Phase-Out 2020: Monitoring Europe’s fossil fuel subsidies
Both ENDS' publication: Paris Proof Export Support: why and how the Dutch government must exclude credit support for fossil fuel
Contact
Milieudefensie press information:
020-5507333 of persvoorlichting@milieudefensie.nl
Both ENDS:
Niels Hazekamp 020-5306639 of n.hazekamp@bothends.org
Masja Helmer 020-5306637 of m.helmer@bothends.org
Notes:
(1) This consists of 4.4 billion euros in direct subsidies and fiscal arrangements, 2.2 billion in international public financing for oil and gas (by public financial bodies) and 946 million in investments by state companies in oil and gas.
(2) The European Union has committed itself to ending environmentally harmful subsidies by 2020. In addition, through the G20 and the G7, European governments have made international agreements to ban fossil fuels.
Photo: Oil transport on Student Energy
Read more about this subject
-
Press release / 14 mei 2017
Criticism of Dutch pension fund ABP’s investments in coal, oil and gas
The Dutch pension fund, ABP, invested about two billion euros more in the fossil energy industry at the end of 2016 than the year before. This is announced by the report "Dirty & Dangerous: the fossil fuel investments of Dutch pension fund ABP," published today by Both ENDS, German urgewald and Fossielvrij NL. The report criticizes these investments because of the impact on the climate and the catastrophic consequences for the people in the areas where coal, oil and gas are being produced.
-
Dossier /
Paris Proof Export Support
Almost two-thirds of the export credit insurances that Atradius DSB provided in the 2012-2018 period went to the fossil energy sector. That is contrary to the climate agreements that the Netherlands signed in Paris.
-
External link / 31 oktober 2021
A chance worth 1.5 billion euros to stimulate renewable energy
In this short video, Niels Hazekamp of Both ENDS talks about how the Netherlands stimulates projects related to the fossil sector abroad through its export credit agency (ECA) Atradius DSB. The ECA provides export credit insurance for very large-scale and high-risk activities abroad. About two thirds of this export support (worth around 1.5 billion euros per year) is going to the fossil fuel sector. Absurd, at a time when the whole world has to make the transition to sustainable energy. Our country should not support the fossil, but the renewable energy sector with such guarantees, and grab that chance of 1.5 billion!
-
News / 11 december 2017
Stop funding fossils at the 'One Planet Summit' in Paris
Yesterday, the French President Macron, the President of the World Bank Group, Jim Yong Kim, and the Secretary-General of the United Nations, António Guterres, met with international leaders and committed citizens from around the world in Paris. According to the organisers, the aim of this gathering was to 'address the ecological emergency for our planet' as 'two years to the day after the historic Paris Agreement, it is time for concrete action.'
-
News / 8 november 2021
The Netherlands will stop export support for fossil fuel projects, after all
Today, the Netherlands announced that it will join a leading group of countries, including the United States, Canada and Italy, which declared that they would stop international support for fossil energy projects. At the day of the launch of the declaration at the climate summit in Glasgow on the 4th of November, the Netherlands had no intention of joining, but because of pressure from civil society and political parties, the responsible ministries decided to sign after all. Both ENDS, together with organizations at home and abroad, has been pushing for this for years, and we are very happy with this step. We will of course continue to monitor developments.
-
News / 8 november 2018
Our recommendations for the legislative review of Canada's Export Credit Agency
Every 10 years, the mandate and activities of 'Export Development Canada' (EDC), the Canadian export credit agency, are reviewed. Since the last review took place in 2008, another review is currently underway. Both ENDS and a couple of other CSOs working from a number of countries made a joint submission as formal input to the legislative review. We did this especially in light of the Canadian governments' ambition to show leadership on climate change and to prioritise climate change action and clean economic growth.
-
External link / 17 november 2021
Stop export support for fossil fuel project in Mozambique
Julio Bichehe Erneste of Farmers Union Cabo Delgado Mozambique (UPC) on a side event of COP26 in Glasgow, speaking about the negative impacts of export support for fossil fuel projects for local people and their enrironment, and about the need to support renewable energy projects instead.
-
Publication / 29 augustus 2022
-
News / 22 november 2021
E3F, 'Export finance for Future' is a great opportunity for the Netherlands
Export support – and especially that to fossil projects – has been in the spotlights quite often recently. This is a positive development, because the Netherlands alone provides fossil export support worth 1.5 billion euros per year. At the climate summit in Glasgow, the United Kingdom launched a statement promising to stop providing export support to fossil projects by the end of 2022. After having denied at first, the Netherlands decided to join the statement after all – which now has already been signed by nearly forty countries and financial institutions.
-
Publication / 18 juni 2017
-
Press release / 18 november 2019
Press release: Government undermines its own climate policy with export credit insurance
The Netherlands provides export credit insurances and guarantees worth 1.5 billion euros annually to Dutch companies active in the oil and gas sector abroad. This support amounts to one and a half times the annual amount that the Cabinet of Prime Minister Rutte mobilises for climate initiatives worldwide. The intended effects of Dutch international climate policy are more than offset by this fossil export support. That is the conclusion of a new report from Both ENDS which is published today.
-
Publication / 17 november 2019
-
Publication / 15 maart 2023
-
News / 19 mei 2022
Response to government’s letter to parliament on implementation of the Glasgow Declaration
Both ENDS and 95 other organisations* today sent a letter to State Secretary for Finance Marnix van Rij and Minister for Foreign Trade and Development Cooperation Liesje Schreinemacher calling on them to implement the Glasgow Declaration in full. In this agreement, which the Netherlands and 33 other countries signed at the Glasgow climate conference, the signatory countries pledge to stop all public funding for fossil projects by the end of 2022.
-
Event / 5 november 2021, 13:00 - 15:00
Join us on the Climate March on the 6th of November!
This Saturday, November 6, people all over the world will take to the streets again to make a stand for the climate. In the Netherlands, the Climate March will take place in Amsterdam, and of course Both ENDS will join. We call on everyone who is concerned about the climate, to walk along with thousands of like-minded people and make this the largest Climate March in history!
-
Dossier /
Gas in Mozambique
In 2011 one of the world’s largest gas reserves was found in the coastal province of Cabo Delgado, in the north of Mozambique. A total of 35 billion dollars has been invested to extract the gas. Dozens of multinationals and financiers are involved in these rapid developments. It is very difficult for the people living in Cabo Delgado to exert influence on the plans and activities, while they experience the negative consequences. With the arrival of these companies, they are losing their land.
-
Publication / 25 december 2015
-
Letter / 20 februari 2023
Letter of international CSO's to Dutch Parliament: close gaps in Dutch policy on limiting public finance to fossil fuels
In October 2022, the Dutch government published a policy to implement the COP26 statement in which it promised to stop public finance for fossil fuel projects abroad by the end of 2022 . The proposed policy, unfortunately, has quite some 'loopholes' that make it possible for the Dutch government to keep supporting large fossil projects abroad for at least another year. These projects often run for years and will have a negative impact on the countries where they take place for decades to come.
-
News / 28 augustus 2017
Politicians ask for sustainable export support
Last June, Both ENDS published a report which showed clearly that, through export credit insurance provider Atradius Dutch State Business (ADSB), the Netherlands is supporting the fossil fuel sector on a large scale. Between 2012 and 2015, ADSB provided billions of euros in insurance and guarantees, on behalf of the State of the Netherlands, to fossil-related export projects. This support is completely out of line with the Paris Climate Agreement. On 20 June, members of parliament Lammert van Raan (PvdD) and Sandra Beckerman (SP) submitted questions to the State Secretaries for Finance and for Infrastructure and the Environment.
-
Press release / 8 juli 2021
After Shell ruling, banks, pension funds and insurance companies now have to take action
Civil society organisations send urgent letter on climate to financial sector
Amsterdam, 8 July 2021 – The Shell ruling has consequences for the financiers of major climate polluters. That is the message in a letter from a number of civil society organisations, including Oxfam Novib, Eerlijke Geldwijzer, Milieudefensie, Greenpeace and Both ENDS, to the biggest banks, pension funds and insurance companies in the Netherlands. In the letter, they call on the financial institutions to reduce CO2 emissions from loans and investments in line with the 1.5 degrees goal laid down in the Paris climate agreement.