Poorest Dutch households pay more towards combating climate change

The poorest Dutch households are paying 5% of their income towards government climate policy while the richest 10% contribute just 1.5%, according to research carried on on behalf of environmental campaign group Milieudefensie.

The report, by CE Delft, looks at the financial impact of the Paris treaty – which determined the rise in temperature should be no higher than 2% – on Dutch households.

In terms of costs, the richest 10% of the Dutch population pay an average of €1,334 a year towards reducing climate change. The poorest 10% pay €372 a year and the rest €633. Of that, some 75% is due to energy taxes levied on gas and electricity bills.

Not only to the poorest families contribute a bigger share of their income, but 80% of the tax breaks and subsidies for green energy and electric cars goes to the richest households, the research shows. The government spends €750m a year on subsidising individual’s efforts to go green.

Company benefits

Companies, however, benefit the most. They receive over €2bn a year in subsidies, of which €1.5bn goes on subsidising renewable energy sources.

The researchers say that without a new approach, the poorest Dutch households will be carrying an increasingly large share of the cost of combating climate change.

Milieudefensie, which commissioned the report together with the FNV trade union federation and housing lobby group Woonbond, says the government needs to take steps to readdress the balance. For example, poor households could be given a discount on their energy bills, the organisations say.