Dutch Government Plans CO2 Emissions Levy for Industrial Firms

(Bloomberg) -- The Dutch government plans to impose a CO2 emissions tax on industrial companies as part of proposed measures to meet a target to cut greenhouse gas emissions by 49% in 2030 from levels in 1990.

Companies will have to pay 30 euros ($34) per ton of CO2 emitted from 2021, according to a statement from the Dutch government. That tax can go up to between 125 euros and 150 euros per ton in 2030. Proceeds from the plan will be largely used to make industrial firms more sustainable.

The proposals come after a concept-climate agreement was reached in December following months of talks between companies, industry groups, government bodies and NGOs. An analysis of that agreement by the Netherlands Environmental Assessment Agency PBL published in March showed that the 2030 goal “probably” wouldn’t be reached.

Other proposals to cut emissions announced on Friday include a plan to stimulate the transition from gas to electricity gradually through the tax incentives. The Dutch government will also look at a pay-per-use system for drivers from 2025, while it also plans to continue to stimulate emission-free driving.

To contact the reporter on this story: John Hermse in The Hague at jhermse@bloomberg.net

To contact the editors responsible for this story: Ben Sills at bsills@bloomberg.net, Vidya Root, Rudy Ruitenberg

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