Dutch to introduce corporate CO2 tax as climate plans fall short

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The Dutch government announced on Wednesday a carbon tax for companies after a top advisory body said current plans to cut emissions will fall short of targets.

Proposals to fight climate change put forward in recent months will cost the Netherlands around 5.2 billion euros ($6 billion) over the next decade, but will fall short in achieving a 49 percent CO2 emission reduction goal by 2030, the CPB advisory body said.

The Dutch government is expected to decide by the end of April on a climate change policy program after a consultation led to a series of measures proposed by businesses, activists and other groups. The CPB advisory body said around 130 measures were put forward, including higher taxes on the use of gas for heating and on airline tickets, subsidies on electrical cars, increased use of wind and solar power, and incentives for industry to cut emissions and homeowners to better insulate their houses.

Prime Minister Mark Rutte said new plans will include a tax on CO2 emissions for corporations, on top of the European Union’s current Emissions Trading System, to stimulate more efficient technologies and to make sure companies pay a fair share of the costs of the energy transition.

“This tax needs to be reasonable,” Rutte said without going into details. “It needs to deliver significant CO2 reductions, without chasing companies away.”

[Reuters]

This entry was posted in by Grant Montgomery.

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