Climate policy funding trend break? Citizens will be relieved of costs

Climate policy funding shows a trend break that is beneficial to citizens and small businesses. For the first time, the extra billions the cabinet aligns to meet the climate targets will no longer be paid in full from the utility bill. With gas and electricity prices already showing huge increases worldwide, thats good news for households and small business owners.

The government will allocate an additional โ‚ฌ6.8 billion next year for subsidizing large solar and wind energy projects, improving energy infrastructure, insulation measures for homes and buildings and helping to make the industry more sustainable. This additional investment will be taken from the general resources. โ€œSo we can keep the wallet of households,โ€ says Secretary of State Yesilgรถz-Zegerius for Economic Affairs and Climate.

Yesilgรถz-Zegerius calls it an important step. โ€œBecause it can accelerate the roll-out of renewable energy and other sustainable technologies.โ€

So a new approach. There has also been a long time criticism about how the Netherlands funds climate policy. The International Organisation for Economic Cooperation and Development (OECD) said at the beginning of this year that the bill will be mainly for citizens and smaller businesses, while the major polluters mainly benefit from the subsidies.

The top official of the Ministry of Economic Affairs and Climate Lidewijde Ongering also proposed change. In the ESB economic journal, it advocated funding from general resources and raising the budget deficit.

The Dutch Society of Renewable Energy (NVDE) welcomes the changed funding. โ€œCitizens and businesses are threatening to run into financial problems differently, especially with current energy prices,โ€ says director Olof van der Gaag.

โ€œBut its also a good idea not to fully finance climate policies through the energy bill. The delta works were also not paid out of the water board tax.โ€

In order to protect households, the cabinet has reduced the energy tax for citizens over the past year and increased it for businesses. Small and medium-sized enterprises now note that the account is now mainly coming to them. Industrial large energy consumers that also emit a lot of CO2 like Tata Steel and Shell, largely spring the dance. Thats because of the big consumer discounts on the energy load they receive.

Whether the modified funding of the additional expenditure on climate policy is therefore a real trend break should be reflected in the Cabinet Formation.

Biggest Risk

By the way, the policy of this demissionary cabinet does not mean that the gas and electricity bill does not change. The gas load goes up slightly and that of electricity down to stimulate home and building insulation. The greatest risk to the energy bills is not in tax measures but in increased gas and electricity prices. For people who need to renew their energy contracts in the short term, this could lead to an increase of hundreds of euros per year.