6 May 2025

Dutch Green Growth Package increases costs to businesses and the public

The Dutch Waste Management Association (DWMA) is deeply disappointed with the Dutch Government’s climate plans presented on Friday 25 April. In a letter to the House of Representatives, the Minister for Climate and Green Growth Sophie Hermans sets out her new plans contained in the ‘Green Growth Package’. The previously announced €567 million ‘circular plastic tax’ seems to have disappeared from the Spring Memorandum, at least in name, but the costs have now been shifted to the waste sector. ‘It turns the world upside down,’ says the industry association, which represents 60 waste processing companies, ‘increasing costs to the public via the waste disposal charges and to businesses via higher operating costs, instead of increased purchasing power and lowering the lower tax burden as promised in the Outline Agreement. Waste processing, recycling and sustainability will pay the price. This tax will also lead to the loss of thousands of jobs.’ The Dutch Waste Management Association urges the Dutch Government not to proceed with its proposed taxes and to find alternative sources of finance.

The sector endorses the ambitions of the Green Growth Package to invest in self-sufficiency in energy and raw materials against the background of the new geopolitical situation. But this tax is counterproductive. Under this package, recycling and processing capacity is in danger of being cut back, investments in sustainability by the sector will be halted and large quantities of waste will leak abroad. Exporting waste abroad, where it is subject to no or lower taxes, will become much more attractive. It will also be economically more interesting for sorting and recycling companies to serve the Dutch market from abroad. This will seriously harm recycling in the Netherlands and adversely affect the availability of sustainable raw materials for our industry. The waste industry employs 30,000 people; this tax will lead to the loss of thousands of jobs.

Moving abroad

Sustainability investments by the sector, such as carbon capture, better waste separation and capacity reduction, will be shelved. It will become much more attractive to export waste abroad, where it is subject to no or lower taxes. It will also be economically more interesting for sorting and recycling companies to serve the Dutch market from abroad. This will seriously harm recycling in the Netherlands and adversely affect the availability of sustainable raw materials for Dutch industry.

Carbon storage more difficult

The Dutch Waste Management Association does not understand why the carbon tax is being reduced for many other industrial sectors, but is being doubled for the waste sector, particularly since the infrastructure for carbon capture and storage (CCS) is not yet available. Waste processors now face a 100% emissions reduction target and a charge of €295 per tonne of fossil CO2. This is almost twice as high as for other sectors. As waste can be processed more cheaply abroad, we can expect investments in CCS to be put on hold. It will be harder the get projects such as Aramis (carbon storage under the North Sea) off the ground.

Sustainability investments

The package penalises investments in sustainability, such as carbon capture, better waste separation and capacity reduction, by imposing an even higher waste tax. The target of €567 stands, even if there is less waste. This undermines any prospect of increasing sustainability and puts investments in recycling, carbon capture and heat supply networks at risk.

The Dutch Waste Management Association foresees a bleak future for the waste industry under this package.

• Growing exports and job losses
• Increasing dependence on raw materials and energy from abroad
• Halt to investments in recycling, carbon capture and other sustainability initiatives
• Weakened waste management infrastructure
• Rising costs to businesses and the public

Constructive consultations with ministries

The current Green Growth Package makes the playing field in Europe even more uneven and penalises sustainability initiatives. ‘We will continue to engage constructively with the Ministry of Climate and Green Growth, the Ministry of Infrastructure and Water Management and the Ministry of Finance as well as with our partners, including those in the ‘Plastic Tafel’ consultation group. But we cannot accept that our sector has to bear an impossible financial burden. The waste sector cannot pay the €567 million tax without seriously undermining the circular economy and climate policy. Ultimately, businesses and the public will have to foot the bill.’