Energy and investment
SDE ++
The newly announced 2025 SDE++ round, with an €8 billion budget, continues to drive renewable energy production and climate transition by funding large-scale renewable installations and emission-reducing initiatives. This also includes new opportunities for Direct Air Capture (DAC) and hydrogen from waste. Recent statements suggest a more defined eligibility framework, ensuring that projects - from heat pumps and solar panels to small-scale wind turbines and entire heating networks - meet clear criteria.
Environmental Investment Allowance (MIA) and Vamil
Companies can leverage the so-called MIA and Vamil. In 2025 the MIA enables a deduction of up to 45% of investment costs, while Vamil permits accelerated depreciation of up to 75%. These enhanced incentives are designed to boost capital efficiency and encourage strategic investments in sustainable and environmentally friendly technologies while also (corporate) income tax liability at the level of the investor.
Energy Investment Allowance (EIA)
In 2025, companies investing in clean energy and energy efficiency, can claim a 40% deduction of qualifying investment costs from taxable profits under the so-called EIA scheme. This incentive reduces operational costs and supports innovation in energy efficiency, a key driver for improving EBITDA margins.
Sustainable business parks and entrepreneurship policies
New policies, effective from early 2025, provide subsidies and tax credits to companies that develop collective sustainable ecosystems in business parks and entrepreneurship hubs. Additionally, targeted tax credits for startup incubators focusing on sustainable technologies will be available from July 2025, reinforcing long-term community-focused growth.
Sustainable construction
Effective Q3 2025, real estate developers and construction companies are required to adopt sustainable construction practices. These rules mandate the use of circular construction methods (such as the reuse of building materials) and the integration of renewable energy systems. This initiative aims to significantly reduce the environmental footprint of new construction projects.
Separate hydrogen tax tariff
Effective 2026, a separate, lower tax tariff on hydrogen will be introduced (parallel with fossil fuels, which currently rates at approx. €0,70/m3), aligning its cost structure closer to renewable energy sources. Although its implementation is set for early 2026, companies are encouraged to begin strategic planning in 2025 to benefit from this competitive adjustment.
Netting scheme
The netting scheme for households and smaller businesses will be phased out by 2027, prompting a shift toward increased reliance on battery storage solutions. From 2027 until 2030, any surplus electricity fed back into the grid will be compensated at a rate of at least 50% of the basic delivery rate. This measure requires homeowners and small businesses to reassess financing options and risk management strategies.
In light of this development, it should be underlined that private individuals can, since 2024, and under certain specific conditions, subtract 21% VAT from an investment in a home battery storage.
Expansion of wind energy
The offshore wind energy target is now set at 50 GW by 2040, with ambitions to reach 70 GW by 2050. This accelerated expansion plan is expected to trigger significant regulatory and financial implications for project developers and investors.
Mobility and transport
Fossil fuel excise rates
In 2025, fossil fuel users will benefit from temporarily reduced excise rates:
- €0,79/L for petrol,
- €0,52/L for diesel, and
- €0,19/L for LPG.
However, caution that while these reductions ease short‐term costs, they may delay the transition to cleaner energy sources if not paired with long‐term decarbonization policies.
Zero-emission car taxation
Starting in 2025, zero-emission vehicles will no longer be entirely tax-exempt; instead, they will incur a motor vehicle tax at 75% of the standard rate. This change, aimed at harmonizing tax treatment across vehicle types, is expected to shift consumer preferences and accelerate the market transition toward fully sustainable mobility options.
Natural gas tax reduction
The energy tax on natural gas will be reduced by 4% in 2025, providing a short-term reprieve for fossil fuel users. Nonetheless, caution should be in place as this measure must be counterbalanced by aggressive renewable incentives to prevent prolonged dependence on fossil fuels.
Abolishment of BPM for company vans / small trucks
Previously exempt, the BPM (tax on passenger cars and motorcycles) for company vans and small trucks have been abolished in 2025. The rate will be based on CO2-emission, if the levels are unknown the tax authority will set the emission at 330 gr/km. The rate is set at €74,41 per gr/km. This implicates a significant incentive of switching to electric or hydrogen-powered fleets.
Public transport card
As of 2025, employers can provide a tax-free public transport (OV) card to employees with no distinction between private and business use. This measure is anticipated to reduce urban congestion and promote sustainable commuting.
Levies on plastic, diesel and air travel
Starting July 2025, new tax measures targeting sectors such as packaging (plastic), diesel fuel usage, and air travel will be implemented to discourage environmentally harmful practices. These measures include an incremental levy on single-use plastics and a diesel fuel surcharge that will increase by 5% annually until 2028. Moreover, starting August 2024, air travel will incur an additional environmental tax of €29,40 per outgoing traveller.
Industrial emissions and sector-specific levies
CO₂ tax for energy-intensive industries
The CO₂ tax for energy-intensive industries will increase steadily by €12,84 per year until 2028, offering a predictable framework that supports long-term decarbonization strategies.
Horticulture levies
Greenhouse horticulture operations will experience increased levies (up to €14,60 per ton of CO₂ emissions) to stimulate investments in energy-efficient technologies and alternative heating methods. This policy is expected to drive innovative solutions in the sector.
Coal tax exemption removal and waste incineration levy
From 2027, the coal tax exemption will be abolished, rendering coal a less attractive option for energy production. Simultaneously, companies incinerating waste will face higher levies of €39,70 per ton to promote recycling and reuse. These dual measures, aim to drive an accelerated shift toward cleaner energy and waste management practices.
International (EU-Omnibus) reporting proposals
Omnibus simplification package
On February 26th, the European Commission (EC) published a legislative proposal to significantly amend recently adopted sustainability regulations: the Omnibus simplification package. This proposal was put forward by the EC and will require adoption by the European Council and the European Parliament, before changes are also implemented by EU member states.
The most important elements of the current legislative proposal are:
- Change to the scope of CSRD to require companies with 1000 employees (increased from 250 employees) and either 50 million in turnover or 25 million in balance sheet total.
- This may lead to a reduction of approximately 80% in the number of companies in Europe that are obliged to comply with these directives.
- For smaller organisations the proposal includes the option of voluntary reporting. The Voluntary Standards for SME’s (VSME) could be used for that.
- Postponement of the CSRD reporting obligation for two years for Wave 2 (currently 2026 reporters) and Wave 3 (currently 2027 reporters) entities.
- Removal of both the option to move from limited assurance to reasonable assurance and the ability to adopt sector-specific standards.
- Change to the scope of EU Taxonomy to align with CSDDD eligibility (i.e. 1000 or more employees and €450 million or more in turnover)
- Postponement of the transposition deadline for CSDDD by 1 year, as well as a similar postponement of reporting obligation by 1 year to July 2028.
- Simplifying requirements within the CSDDD, through focusing systematic due diligence requirements on direct business partners.
The EC has requested a ‘fast track’ for the proposal on delaying the CSRD reporting obligation by 2 years and the CSDDD transposition deadline and reporting obligation by 1 year, however it remains unclear how soon this proposal can be adopted by the European Council and Parliament. Learn more details about the Omnibus Proposal.
Carbon Border Adjustment Mechanism (CBAM)
Importers of high-emission goods such as steel, cement, and aluminium will face increased costs through the CBAM, designed to incentivize reduced carbon emissions across global supply chains. Companies must re-evaluate sourcing strategies to maintain competitiveness. The recent EU-Omnibus proposal aims at simplifying compliance for smaller importers and has introduced a 50 tons/year exemption (instead of a €150 threshold). It is estimated that approximately 182,000 importers, will therefore be exempt from the reporting obligations on their low-volume imports. A full review of the CBAM will happen throughout 2025, followed by a legislative proposal in early 2026.
EU Deforestation Regulation (EUDR)
Under the EU Deforestation Regulation (EUDR), effective from the end of December 2025 for large companies, companies must now implement due diligence measures when importing agricultural products such as livestock, palm oil, soy, cocoa, coffee, rubber and timber, and their derivatives such as leather, chocolate and processed palm oil products. These measures require supply chain traceability and risk assessments to ensure that imported goods do not contribute to deforestation. In the light of the EU-Omnibus proposal, it cannot be excluded that the supply chain traceability will be reduced to the direct suppliers. However, as things currently stand, industry guidance highlights that smaller companies which fail to adapt by mid-2026 may face significant market risks (such as penalties) and reputational damage.
Concluding remarks
Marking a new era of sustainable growth in tax reforms the Netherlands is marching Dutch society into a greener future. The most prominent upcoming changes occurring in facilitating incentives, reporting obligations to align with the international standards and various new levies mainly targeted at emission reduction.
While being on the threshold of change companies impacted by these changes require expert guidance. Feel free to contact our Sustainable Tax specialists to capitalize on these changes to ensure their standings within the ever-evolving tax environment.
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