Ecorys Report Opposes Red Diesel Reintroduction for Agriculture
The Hague, Thursday, 28 August 2025.
The Ecorys report suggests a forfaitary system, instead of red diesel, for agriculture due to implementation complexities and fraud risks, while highlighting €1.6 billion in green grants.
Complexities and Risks of Red Diesel Reintroduction
A recent analysis by Ecorys, commissioned by the Dutch Ministry of Finance, underscores the complexities and substantial financial risks associated with the reintroduction of red diesel for the agricultural sector. This policy shift, initially proposed by the outgoing Schoof cabinet, aimed to reduce fuel costs starting in 2027. However, Ecorys identified significant barriers, including the potential for fraud and the difficulty in monitoring usage due to advanced fuel security systems in machinery. These challenges highlight why such a reintroduction would not be favored by representatives from both the agricultural and fuel sectors [1].
Forfaitary System as an Alternative
Instead of reverting to red diesel, Ecorys suggests a forfaitary system based on crop type and plot size instead of exact diesel consumption. This system aims to simplify subsidy processes and prevent fraudulent activities, though it requires further investigation to ensure it complies with European state aid regulations. Ecorys’s advocacy for a forfaitary system stems from its understanding of systemic complexities and fraud potential, as well as its alignment with sustainable agricultural practices [1].
Green Innovation Funding in the Netherlands
Amid the discussion on red diesel, the Dutch government has offered substantial financial support for innovation through the WBSO (Wet Bevordering Speur- en Ontwikkelingswerk) program. With an allocation of €1.6 billion for 2025, the WBSO initiative encourages small and medium-sized enterprises (SMEs) to undertake research and development projects. Companies can reduce labor costs for innovation projects, facilitating the development of new processes, products, and technologies aimed at sustainability and CO2 reduction [2][3].
Ecorys’s Role in Sustainability and Innovation
Ecorys, a consulting firm with extensive experience in sustainability and economic policy studies, continues to influence policy decisions through expert analyses. Their recent findings highlight the potential adverse environmental impact of red diesel reintroduction and emphasize incentives for adopting greener practices in the agricultural sector. By advocating for innovation and sustainability, Ecorys supports the broader objective of reducing pollution and combating climate change in the Netherlands [1][3].