Dutch Minister Seeks Coalition for Gradual Phase-Out of ‘Fossil Subsidies’

Outgoing Dutch Climate Minister Rob Jetten stated that he will attempt to form an international coalition for the gradual elimination of fossil fuel subsidies, building on the figure of around 40 billion euros in aid to companies in the Netherlands.

– Gradually phasing out fossil fuel subsidies in the near future is a complex task, but we really need to think about what we can do in the coming years – Jetten said on Monday in a statement to Reuters on the sidelines of a meeting of energy ministers and climate groups in Madrid.

Industrial companies in the Netherlands receive between 39 and 46 billion euros in ‘fossil subsidies’ annually, the government reported two weeks ago.

‘Fossil subsidies’ encompass a wide range of measures, as shown in the government report, including tax breaks for fuel in the aviation sector and for industrial producers of hydrocarbons in the production process.

Large industrial consumers can also count on relatively low tax rates.

– We have detailed billions of fossil subsidies in our system. Now I would like to know what the situation is in other countries. And do we consider it acceptable – the minister Jetten stated in an interview with the newspaper Trouw.

The release of that report coincided with protests by climate activists, who blocked part of the main road in The Hague for days, demanding the immediate elimination of all fossil fuel subsidies.

– If we want to gradually eliminate fossil fuel subsidies and ensure that this money is invested in our local communities and in the green transition, we really need to accelerate our international measures for the gradual phase-out of fossil fuel subsidies – Jetten said on Monday.

– Therefore, in the coming weeks, I will try to strengthen the international coalition for the gradual elimination of fossil fuel subsidies so that we can take appropriate steps and fulfill the promise we made many, many years ago – he added.

Ahead of the UN Climate Change Summit COP28 in Dubai, countries remain divided between advocates of a gradual phase-out of fossil fuels that warm the planet and supporters of continued, albeit reduced, use of coal, oil, and gas for economic needs.