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ARTICLE · 30 APRIL 2025

Indirect Cost Compensation Subsidy For Dutch Industry To Return

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The Netherlands has a subsidy scheme to compensate certain industrial sectors for indirect emission costs relating to the EU Emission Trading System (EU ETS)...

NetherlandsEnergy and Natural Resources

The Netherlands has a subsidy scheme to compensate certain industrial sectors for indirect emission costs relating to the EU Emission Trading System (EU ETS), which subsidy scheme follows directly from EU law. These indirect emission costs are generally passed on in electricity prices and therefore have a bigger effect on energy-intensive industries.

At the European level, this state aid framework has been established to allow member states to support the transition of specific sectors towards decarbonisation and reduce the risk of carbon leakage by using revenues generated from the auctioning of emission allowances under the EU ETS to aid these industries.

In an announcement today, the Ministry of Climate and Green Growth announced that applications for this Indirect Cost Compensation Subsidy scheme shall be reopened in 2025. Below we will set out some relevant attention points when applying for a subsidy under the Indirect Cost Compensation scheme.

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