The 2026 National Budget for Climate and Green Growth outlines how the government and funds intend to use bio-based raw materials and biomass. Biobased construction will be subject to standards and incentives, carbon removal will be included in an official certification framework, and a pathway for cleaner agricultural machinery with electrification or biogas will be established. All of this is linked to the Climate Fund's broader commitment to infrastructure, scaling up, and industrial sustainability.
Biobased construction is being standardised and given incentives
The Climate Fund budget includes a measure called Standardization and Stimulation of Biobased Construction. This includes funds for stimulating demand for biobased materials, a subsidy scheme for scaling up production, and support for standardization. Over nineteen million euros have been reserved for 2026, with increasing amounts in subsequent years. The measure is being implemented in collaboration between Climate and Green Growth, Housing, and Agriculture, Fisheries, Food Security, and Nature. This provides the construction sector with a concrete budget to bring wood and fiber crops to market more quickly.
The departmental explanatory memorandum for Climate and Green Growth also explicitly mentions the biobased construction subsidy scheme. Companies can use subsidies to scale up the production of biobased building materials. This aligns with the National Approach to Biobased Construction, which focuses on the use of fibers from Dutch agriculture.
Carbon removal moves to adult supervision
The Netherlands Emissions Authority will be assigned additional responsibilities. The budget states that the NEa will provide second-level oversight of the certification framework for carbon removal. This concerns the European framework for carbon removal certification. The same passage also mentions oversight of the sustainability framework for bio-based feedstocks. This is an important signal. It means that carbon removal, including bio-CCS and other biogenic pathways, will not only remain in pilot projects but will also be formally incorporated into the implementation landscape.
Route to cleaner agricultural machinery with electrification and biogas
The Climate Fund documents mention a scheme for sustainable agriculture based on the ETS2 opt-in. Entrepreneurs can apply for a subsidy for the purchase or conversion of future-proof equipment. The options include electrification and gas engines compatible with biogas or hydrogen. The detailed tables show amounts for these starting in 2026. This gives farmers and contractors a concrete action plan, while bringing the domain of work and vehicles under ETS2 closer.
For builders and material processors, stable demand and better financing are emerging. This can accelerate investments in factories for biobased panels, insulation, or composites. For developers and municipalities, standardization in the construction chain is becoming more tangible, influencing the choice of materials in specifications and environmental performance calculations. For agriculture and landscaping, there is an incentive to transition to electric or biogas, provided charging infrastructure and green gas are available on-site or in the region. And for carbon capture projects, this means establishing certification and oversight, a prerequisite for scale and trust from credit recipients.
View the here 2026 National Budget for Climate and Green Growth
