More and more entrepreneurs are applying for subsidies for projects that contribute to a circular economy. The number of circular projects has never been as large as in 2021. The number increased by more than 30% compared to 2020. The projects mainly concern plastics, chemicals and building materials. This is evident from the annual RVO Circular Economy monitoring report.
From plastics to hydrogen
The large increase in subsidies is mainly due to the subsidy money from the Innovation Fund. In 2021, more than 630 circular projects were added with a total subsidy amount of € 429,1 million. After the focus on projects for plastics, chemicals and building materials, hydrogen from household waste follows, which is central to the Innovation Fund project.
Construction sector and the MIA\Vamil
The construction sector is an industry that also receives a lot of support, mainly with the MIA\Vamil and the Green Projects Regulations. Most projects focus on closing chains, such as (re)use of (biobased) raw materials and recovery of fuels, energy and heat. The share of biobased subsidies increased significantly, from €78,9 million in 2020 to €223,9 million in 2021. That is 2,8 times as much.
In addition to the subsidies, €114,7 million in tax exemptions via WBSO and MIA\Vamil also went to circular research and investments. This amounts to 38% of the total MIA\Vamil budget and 5% of the WBSO budget. The WBSO stimulates innovation and shows us which innovation themes we are working on in the Netherlands. We see that with this 5%, research and development work aimed at the circular economy is not yet at the top of the agenda of companies.
Financial support for circular projects
Of the relevant subsidies and tax schemes for the circular economy, an average of 17% goes to circular projects. In 2020 this was an average of 9%. In 2021, the national government, the EU and provinces supported the circular economy in the Netherlands with a total of €634,6 million. The distribution was:
- The European Union contributed €257,8 million in 2021, 3,6 times more than in 2020 (€72 million).
- As far as is known, the provinces paid € 16,3 million.
- The government invested €155,1 million in subsidies, 10,8% more than in 2020 (€140 million). The government invested €114,7 million in tax concessions, 48,4% more than in 2020 (€77,3 million).
- Approximately €90,8 million went to circular projects through government funding flows outside the Netherlands Enterprise Agency (RVO) and Regieorgaan SIA. Wageningen University spent €16,3 million of this.
Work program Monitoring and Steering Circular Economy
RVO is conducting this research on behalf of the Netherlands Environmental Assessment Agency (PBL) in the context of the Monitoring and Steering Circular Economy Work Program 2019-2023. Every 2 years, PBL publishes the Integrated Circular Economy Report (ICER) with recommendations for the government on designing or adjusting the policy for a circular economy.
Source: RVO.nl
