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The Netherlands is implementing a 'Whole of Government Approach' to phase out fossil fuel subsidies, focusing on international cooperation through the COFFIS coalition and EU-level mechanisms like the EU-ETS and CBAM. Nationally, the government uses an 'external costs approach' to identify pricing gaps, which amounted to a fossil subsidy of 18.0 billion euro in 2024. The plan details specific phase-out paths for various tax exemptions and subsidies, while identifying several others that remain unchanged due to international treaties or socio-economic considerations.

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  • The Netherlands uses two methods to track fossil fuel subsidies in the Miljoenennota: an 'external costs approach' and an 'inventory approach'. The former compares the actual CO2 pricing against the quantified external costs of climate damage, identifying a 'pricing gap' or fossil subsidy of 18.0 billion euro for 2024 based on a reference price of 174 euro/ton CO2.
  • In 2023, the Netherlands founded the Coalition on Phasing Out Fossil Fuel Incentives Including Subsidies (COFFIS), a group of 17 countries committed to publishing national inventories and phase-out plans. COFFIS specifically targets international barriers to reform, with a primary focus on the aviation and shipping sectors.
  • The Netherlands advocates for the EU-ETS to be the 'backbone' of climate policy and proposes expanding it to include waste incineration plants by 2028. It also supports the Carbon Border Adjustment Mechanism (CBAM) as a more sustainable alternative to granting free emission rights to prevent carbon leakage.
  • The government is implementing a phased increase in energy taxes for natural gas through 2030. For consumption up to 170,000 m3/year, rates will rise from 25.2 (+ 1.6 cent ODE) eurocents per m3 in 2017 to 65.5 eurocents per m3 in 2030.
  • Several national subsidies are being phased out or reduced: the reduced energy tax for greenhouse horticulture will be phased out between 2030 and 2035, and the input exemption for natural gas in electricity generation will be linearly reduced from 2025 to 2030.
  • A number of fossil fuel advantages cannot be unilaterally removed by the Netherlands because they are mandated by international treaties or EU directives, such as the Energy Taxation Directive (ETD). These include excise exemptions for kerosene in international aviation and fuel for commercial shipping.
  • The Netherlands has introduced a flight tax of 29.40 euro per departing passenger as of January 1, 2025, with plans to differentiate rates by destination distance starting January 1, 2027, ranging from 29.40 euro (EU/ <2,000 km) to 70.86 euro (> 5,500 km).
  • Certain subsidies are maintained due to socio-economic reasons or lack of effectiveness in reducing emissions. For example, the energy tax refund for non-profit and religious institutions is kept to avoid harming the financial viability of these organizations and their connection to vulnerable groups.

Cite the original document

APA
International Institute for Sustainable Development (2025). Uitfaseerplan fossiele brandstofsubsidies. https://www.iisd.org/system/files/2025-11/uitfaseerplan-fossiele-subsidies-nl-2025.pdf
Chicago
International Institute for Sustainable Development. Uitfaseerplan fossiele brandstofsubsidies. 2025. https://www.iisd.org/system/files/2025-11/uitfaseerplan-fossiele-subsidies-nl-2025.pdf.
Wikipedia
{{cite report |author=International Institute for Sustainable Development |title=Uitfaseerplan fossiele brandstofsubsidies |date=October 2025 |url=https://www.iisd.org/system/files/2025-11/uitfaseerplan-fossiele-subsidies-nl-2025.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{internationalinstituteforsustainabledevelopment2025uitfaseerplan, author = {{International Institute for Sustainable Development}}, title = {{Uitfaseerplan fossiele brandstofsubsidies}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = oct, url = {https://www.iisd.org/system/files/2025-11/uitfaseerplan-fossiele-subsidies-nl-2025.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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