Global Policy Forum

Dutch Green Plan Boosts Energy Taxation

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Ends Environmental Daily
February 6, 1998

Energy taxes on Dutch consumers and small businesses could be doubled, under a proposal in the Netherlands' third environmental policy plan (NEPP3), which was published yesterday. Dutch industry has greeted the proposal with dismay, saying that it cuts across voluntary agreements to reduce carbon dioxide emissions, but environmental groups have described it as "half-work".


The NEPP3 reviews Dutch environmental developments since its predecessor in 1993, the NEPP2, and makes an overall plan for policies to 2003. Signed by the ministers for agriculture, transport, economic affairs and finance as well as Dutch environment minister Margaretha de Boer, the plan is the Netherlands' central environmental policy document.

Increased energy taxation is the key new initiative in NEPP3. Taxes on energy and on fossil fuels, excluding motor fuels, are to be increased by DFl3.4bn (Ecu6bn). Most of the revenue is to be returned to the economy through reduced income taxes, lower taxes on corporate profits and increased social benefits. The remaining DFl500 is intended to support energy saving measures.

The government forecasts that the increased taxes will achieve a 7-10m tonne cut in carbon dioxide emissions - up to 5% of the national total. The move is an important step towards a national aim of greening the tax system - shifting taxes from labour to environment - according to an environment ministry official.

Other highlights include a DFl2.6bn increase in government environmental spending to 2010. This will mean an annual increase in expenditure of DFl250m by 2003, the environment ministry says. Most of the extra spending is to be focused on three priority areas: DFl1.5bn for contaminated soil clean-up, DFl750m for carbon dioxide reduction and DFl300m for reducing emissions of nitrogen oxides (NOx).

Four-hundred-and-fifty pages long, the NEPP3 contains a host of other proposals, targets and policy options. Among them are: a large expansion of 30km/hr urban traffic speed limits; up to 50% of new buses to run on natural gas by 2002; an increase in waste recycling from 72% in 1996 to 80% by 2010; at least a 20% cut in the number of pigs, which cause severe nitrate pollution; and a 40% cut in industrial use of groundwater.

The NEPP3 will be the last plan in the present format, according to the environment ministry. A new integrated policy document on environment and spatial planning to be entitled "the living environment" will be prepared within two years, the government has decided.

In the meantime, the immediate prospects for proposals in the NEPP3 are being overshadowed by the Netherlands' forthcoming election. In several key "bottleneck" areas, the plan presents options rather than firm proposals. According to the government, actions needed to achieve sustainability on NOx, carbon dioxide, ammonia and noise pollution are so large that they should be decided more firmly by a new administration after the election, which is due in May.


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FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Policy Forum distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C § 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.