Dutch government wants to incentivise individual grower with 'flat' carbon tax

The cabinet has commissioned research into six variant for the single CO2 system for nursery horticulture . The Hague wants to change the scheme to give growers more incentive to become more sustainable . Now , the sector organisation affects the sphere as a whole . The new scheme should boost individual agriculturalist to take action , by taxing each tonne of CO2 in the same elbow room through ' a flat tax ' .

This choice will be ' worked out in more particular ' , LNV diplomatic minister Adema write to the Lower House when publishing the concluding report of inquiry firms Berenschot and Kalavasta .

The CO2 sector system should facilitate greenhouse horticulture become clime - neutral by 2040 . The sphere has this dream and it has also been lay down in a compact with the government . The covenant take agreements and instruments to reduce CO2 emissions from greenhouse gardening . The interim end of this covenant is to leave the sector ’s emissions at between 4.3 and 4.8 Mtonne CO2 equivalents .

Individual sector system now does not incentivise grower enoughThe covenant hold additional incentive measures on the one hand , and incentive measures on the other , including the introduction of an improved CO2 sector system . The improved CO2 sphere organization will replace the current sector scheme and should enter into force on 6 January 2025 .

The sector currently already has a CO2 sphere system . Under this scheme , entrepreneurs are charged in proportion to lifelike gas use . However , this looks at CO2 emissions of the sector as a whole and not of the individual raiser . As a result , according to the researchers , the system has examine " ineffective " because " it miss a clear steering sign and does not provide an incentive for single agriculturalist to become more sustainable .

This is because of the long village clock time , which means a grower only later receives the bill for the late twelvemonth ’s emissions and therefore can not make an investment conclusion in advance . The investigator also point out that the collectivity of the CO2 sphere cap wee-wee individual entrepreneurs feel less responsible . " The inducement for the individual plantsman to become more sustainable is not that great , because the levy en masse is not known in overture and reckon on the performance of the entire horticultural sphere . "

Flat levyThe researcher examined six variants . Broadly speaking , two system variate can be distinguished : one where the grower only pays for what he emits ' in excess ' , and a ' flat variation ' where all emissions are taxed equally . The government has chosen the ' flat tax ' version . The main argument for this choice , Adema writes in the parliamentary letter , is to task every tonne of CO2 equally . In gain , according to the government , this organisation is easier . Glastuinbouw Nederland bear this selection , the minister stressed .

A levy en masse ' at the gross profit ' has also been explored . Here , faster impingement of the expected for sustainability . With the ' flat charge ' , ' speedup ' of sustainability follows later .

presently , throttle prices are high . However , they are ask to accrue again . The researchers advocate that the new sector system should consider a state of affairs where Department of Energy terms are so gamy that an additional levy is not necessary .

Importance of access to sustainable sourcesThe researchers also make another recommendation . According to them , " the sphere appear to have big potential drop to become more sustainable " , provided entrepreneurs gain and maintain access code to sustainable sources . " Particularly in sources of geothermal and wastefulness heat , it will be significant to ensure that these are available to a wide group of horticulturists . Recommendation is therefore to make up extra attention to how entrepreneurs have sufficient access to sustainable heat when introducing the proposed revenue enhancement measures and/or the sector system , otherwise these adjustments will only head to extra costs for the sphere and not enough to the desire sustainability of that sector . "

View the full enquiry paper here .