In 2023, the European Union generated over €43 billion from selling CO2 emission permits, with €1.3 billion allocated to the Netherlands, according to the European Environment Agency. This marks the first year countries are required to spend these revenues on climate projects, though tracking specific expenditures in the Netherlands is challenging due to a lack of earmarking.
The European revenues from CO2 permits were significantly lower in 2017 at €5 billion, but have increased as CO2 prices have risen. The EU Emission Trading System, operational since 2005, aims to encourage companies to reduce emissions by making pollution costly.
Approximately 10,000 companies across 30 countries, responsible for half of the EU’s CO2 emissions, purchase these permits. Of the €43 billion, €33 billion goes directly to member states, with the rest supporting EU innovation funds for projects like electric vehicle battery development and renewable hydrogen production.
Two-thirds of the funds allocated to domestic projects focus on energy, public transport, and mobility, while international project funding remains low at €100 to €200 million annually. Following Germany, Poland, Italy, Spain, and France, the Netherlands receives significant revenue from this market, with Germany earning €7.6 billion from auctions.
The Dutch Ministry of Finance cannot specify how the Netherlands spends this money, as income and expenditure are separated under Dutch budgeting rules. The country must spend at least the amount it receives, but the funds’ origins are not tracked.
In 2023, much of the sustainability funding in the Netherlands was directed towards subsidizing home energy efficiency improvements.
Source: NOS