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Green growth minister to spend €500m on industrial energy users

April 23, 2025
A Nuon power plant in Diemen. Photo: hansenn Depositphotos.com

Green growth minister Sophie Hermans is to spend €500 million on compensating heavy industry for the rising costs of energy, after several firms said they were considering leaving the Netherlands.

The compensation scheme effectively extends the subsidy for high energy users that was due to be abolished last year as part of the cabinet’s energy transition plans. Large companies have complained that energy prices are two to five times higher in the Netherlands than neighbouring countries.

Hermans will invest €500 million from the climate fund, which was set up to support companies switching to more sustainable energy sources, in the compensation scheme, the Telegraaf reported on Wednesday.

The cabinet has already watered down its green energy plans by scrapping measures such as a ban on new gas boilers from 2026.

However, Hermans will not row back on a planned tax on CO2 emissions for industry, despite coming under pressure from coalition partners PVV and BBB to do so.

The environmental planning agency PBL had warned that carbon dioxide emissions would not come down fast enough to meet the Netherlands’ climate change targets unless the government stepped up its efforts.

Hermans also wants to encourage more motorists and lease companies to switch to electric cars by changing the rules on road tax, and introduce more subsidies to make houses more energy efficient. Her plans are due to be published on Friday.

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