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EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure NL-2023-1/3003 – measures in Netherlands

Tightening carbon tax exemptions on industry

Aanscherping CO2-heffing industrie

Country Netherlands , applies nationwide
Time period Open ended, started on 01 January 2023
Context Green Transition
Type Legislations or other statutory regulations
Category Reorientation of business activities
– Other
Author Thomas de Winter (Panteia) and Eurofound
Measure added 03 January 2023 (updated 21 April 2023)

Background information

Industrial companies that emit too much CO2 will pay more tax from 1 January 2023. The government wants to encourage industrial companies to make their production processes more sustainable. The goal is an additional reduction of over 4 megatonnes of CO2 emissions by 2030. This is on top of the 14.3 megaton reduction in CO2 emissions agreed in the Climate Agreement for 2030.

Content of measure

The part of CO2 emissions on which industrial companies do not have to pay a tax is smaller from 1 January 2023. Thus, companies that emit a lot of CO2 will pay more tax. Since 1 January 2021, industrial companies have been paying a CO2 levy. The aim is to encourage companies to emit less CO2 in their production processes. To give companies time to adjust their processes, they are given an exemption for part of the emissions. This exempted part will decrease from 1 January 2023. The carbon tax rate will not change from 1 January 2023. The government plans to determine in 2024 whether the carbon tax rate should be higher from 1 January 2025. The Netherlands Emissions Authority (NEA) implements the scheme.

Use of measure

No data.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Any other form of consultation, institutionalised (as stable working groups or committees) or informal Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown

Involvement allows anyone to make suggestions for improving laws and regulations under preparation. This increases the involvement of citizens, businesses and institutions in the creation of laws and regulations.

Views and reactions

The Consultation report on the Industry CO2 Levy Act shows that more than 30 industrial companies or interest groups, such as employer' organisations VNO-NCW (Confederation of Netherlands Industry and Employers), Midden- en Kleinbedrijf Nederland (SME Netherlands, MKB NL, Vereniging Nederlands Cabinepersoneel (Dutch cabin crew association, VNC I), Koninklijke vereniging van Nederlandse papier- en kartonfabrieken (Royal association of Dutch paper and board mills, VNP) and Federatie Nederlandse Levensmiddelen Industrie (Dutch Food Industry Federation, FNLI) responded to the consultation. These often extensive responses address the content of the design of the bill. In general terms, these responses express support for the Climate Goals but also call for a postponement of the bill, citing the uncertain economic conditions due to the COVID-19 outbreak and the development of the Green Deal in the European Union. This consultation took place in May 2020.



Eurofound (2023), Tightening carbon tax exemptions on industry, measure NL-2023-1/3003 (measures in Netherlands), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.