The outgoing Dutch cabinet has announced that it will increase the CO₂-tax for large emitters. The objective? Reduce industry emissions and boost sustainable alternatives.
According to the Netherlands Environmental Assessment Agency, this increase could reduce industry emissions by several megatonnes. A financial settlement counts. We see that many companies have already started actively avoiding emissions. At the same time, in many sectors the question is still ‘what will be achieved’. By pricing emissions more firmly, sustainability becomes more financially interesting.
In certain sectors – such as construction – emissions are already paid for in Europe under a cap & trade system. If you emit more than you are legally allowed to, you must purchase Carbon Permits. Despite fluctuations, the trend is clear in this market: emissions are becoming more expensive. Source: Trading Economics
The new levy only applies to the largest emitters, with emissions of more than 50,000 tons of CO₂ per year. Although some companies may have to pay more, there are also options to deduct dispensation rights for, for example, reduced emissions. That is of course not the way to actually take valuable, sustainable steps. We therefore see opportunities for companies that dare to work with circular products, strategies and concepts. The value you can realise with this was already in maintaining the quality and value of materials, being able to tell a good sustainable story to your customers, but now also increasingly in avoiding costs for your emissions.
The carbon tax will undoubtedly pose a challenge for some companies. It is not easy to make a transition to a sustainable and as circular company as possible. Yet we see this as a step in the right direction towards a more sustainable future. This means that the part of the market that is mainly driven by financial arguments is now more likely to take action. In addition, the rule affects important emitters, meaning that measures taken by these companies can also have a major positive impact.
C_passport® helps you generate insight into the emission price of your products. The application not only calculates emissions based on material composition, end use and subsequent use of products, but also links this to the CO₂ price.