The move is a blow to the climate plans of caretaker VVD Minister Sophie Hermans, who wanted to now reinvest the levy’s collections into sustainability and green innovation.

The CO2 tax has been collected since 2021 but so far has been largely offset, and it was set to have the full impact in the years to come, potentially costing companies hundreds of millions of dollars if their emissions have risen.

Worries about Fairness and Feasibility
CDA leader Henri Bontenbal also believes the pace of sustainability is moving too slowly for businesses, as it is confronted with conditions beyond its control, such as the high cost of energy and an overstretched power grid.

He cautioned that the additional tax would leave Dutch businesses at a competitive disadvantage to their European counterparts.

Recently, the VVD has announced that it supports the motion and with that, there is a parliamentary majority in favor of this motion. “The VVD wants to get rid of the CO2 levy as soon as we can,” the party said, saying Dutch industry needed to remain competitive worldwide.



Even if the motion succeeded, it is unclear what a new Cabinet would do with the policy shift — the Netherlands is still obliged to meet its climate targets. Abandoning the levy could leave a hole in funding for green transition efforts, and the decision leaves open the question.