Netherlands Restores Climate Subsidies After Sharp Government Cuts
The Hague, Sunday, 1 February 2026.
The new Dutch coalition government has reversed previous cuts to the crucial SDE++ climate subsidy program, allocating €8 billion annually until 2032. The Schoof cabinet’s earlier reductions had sparked widespread criticism from environmental groups and businesses dependent on clean energy funding. Under the restored program, large energy users can receive compensation for renewable energy projects over 15-year periods, making sustainable investments financially viable. The reversal comes as the Netherlands faces less than 5% chance of meeting 2030 climate targets and recent court rulings demanding faster emissions reductions to protect vulnerable territories like Bonaire.
Coalition Agreement Reverses Energy Policy Direction
The coalition agreement between D66, CDA, and VVD, presented on January 29, 2026, marks a dramatic shift from the previous Schoof cabinet’s approach to climate policy [1]. The new government plans to execute six new SDE++ rounds from 2027 to 2032, with each round allocated €8 billion annually [2]. This represents a complete reversal of the Schoof cabinet’s earlier decision to scrap the CO2 levy and reduce subsidies for renewable energy projects [3]. Olof van der Gaag, chairman of the Dutch Association for Sustainable Energy (NVDE), welcomed the change, stating “We kunnen weer aan de slag met de energietransitie” (We can get back to work on the energy transition) [1].
Technical Framework and Business Impact
The SDE++ subsidy scheme operates as an exploitation subsidy with a 15-year duration, compensating large energy users - defined as commercial connections greater than 3 x 80 Ampère - for green energy they generate and feed back into the grid [4]. The program bridges the gap between market prices for delivered energy and the cost price of sustainable energy, making business cases for renewable projects both more attractive and more certain [4]. The subsidy application process occurs during opening rounds managed by the Netherlands Enterprise Agency (RVO), with four phases that prioritize lower subsidy requests per ton of CO2 reduction to maximize environmental impact per euro spent [4]. Generation Green’s business developer Romeo van Zuilen emphasizes that preparation time is crucial, as applications require significant advance planning [4].
Broader Investment Package and Timeline
Beyond the SDE++ restoration, the coalition has committed to a comprehensive €20 billion investment package for agriculture, nature, and nitrogen policy [2]. The government also plans to expand offshore wind capacity to 40 gigawatts by 2040, with investment resources allocated until 2050 to achieve this target [2]. Between 2031 and 2040, an additional €800 million will be allocated annually for climate and energy policy implementation by other authorities [2]. The timeline is aggressive: the first new SDE++ round will begin in 2027, just one year after the coalition agreement was finalized [2].
Industry Response and Environmental Pressure
Environmental organizations have expressed mixed reactions to the coalition’s climate commitments. Marieke Vellekoop, director of Greenpeace Netherlands, called the overall agreement “een enorme teleurstelling” (a huge disappointment), arguing that “Klimaat en natuur trekken aan het kortste eind” (Climate and nature draw the short straw) [1][3]. However, the Dutch Association for Sustainable Energy welcomed the strong commitment, with the coalition agreement involving investments of tens of billions of euros in the energy transition [3]. The urgency is underscored by recent court rulings: Greenpeace won a lawsuit requiring the government to reduce emissions to protect Bonaire residents from climate change, giving the new cabinet 18 months to establish binding reduction goals [1]. Additionally, research indicates the Netherlands has less than a 5% chance of reaching its 2030 climate targets under current policies [1].