A large part of the billions of euros in energy subsidies that are available every year for large sustainability projects remain unused, according to research by consultancy firm CE Delft. At the end of 2019, this amounted to 3,2 billion euros. Part of the subsidy has flowed back to the treasury in recent years.
The Dutch Association of Sustainable Energy Companies (NVDE), which commissioned the study, advocates spending the reserves on heating projects to achieve climate goals. The money remains unused because the government budgets conservatively and often estimates the costs to be higher than they actually are. By taking a little more risk, more projects can be financed, according to the NVDE.
Due to the urgency of the climate problem, the government would be better off financing any setbacks in such projects from general resources rather than leaving billions lying around, the association reasons. A majority in the House of Representatives recently supported a motion by the Christian Union with the same effect.
Every year the government pays out many billions of euros in subsidies through the Sustainable Energy Incentive (SDE++). This operating subsidy covers the difference between the costs of a sustainable energy project and the yield.
In this way, the government finances the unprofitable top of the project. Companies can claim this subsidy and the government pays money to the projects that achieve the greatest CO2 reduction at the lowest costs.
“We see that all forms of extreme weather are becoming more common due to climate change, resulting in floods, heat waves and forest fires,” says NVDE director Olof van der Gaag.
“Meanwhile, the International Energy Agency (IEA) predicts that global CO2 emissions are heading to record levels and the Netherlands is failing to meet both the CO2 reduction targets and the mandatory share of sustainable energy. So we need to step up our game to achieve the 2030 climate goals.”
4,7 billion awarded
Last month, the government awarded 4,7 billion euros in subsidy for the stimulation of sustainable energy (SDE++) for this year; 5 billion euros are available. More than 2 billion euros went to the Porthos project in the port of Rotterdam, with which Shell and Esso, among others, want to capture CO2 from their refineries and store it in empty gas fields under the North Sea. Furthermore, the money mainly goes to large projects with solar panels.
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