FNLI: Climate deal threatens sustainability of food sector

The recently announced increases in the energy tax on gas and the proposed levies from the additional climate package threaten to hamper the sustainability efforts of food manufacturers. FNLI calls on the outgoing cabinet to protect food companies from these additional financial pressures.

According to FNLI, these burden increases make it challenging for entrepreneurs to draw up concrete investment plans to promote sustainable processes. These increases add to already existing challenges, such as rising grid management costs and uncertainty around energy policy.

It is crucial that the cabinet and politicians, post-election, commit to solutions that support the implementation of sustainability among businesses. Faster access to robust energy infrastructure is essential, as are policies tailored to the unique needs of this industry.

A recent study conducted by consulting firm KWA on behalf of FNLI indicates that certain food companies, particularly those dependent on high production temperatures such as industrial bakeries, dairy producers and potato processors, will be disproportionately affected by the new levies.

Despite the willingness of many food producers to switch from gas to electricity, they are hampered by the overburdened Dutch power grid. These infrastructure challenges, combined with the rising cost of electricity and gas taxes, make sustainability financially daunting.

Cees-Jan Adema, director of FNLI, emphasizes, "The combined impact of these climate-related costs, with an increase of up to 642% since 2019, along with an expected doubling of grid costs by 2050, threatens the financial space for investments in sustainability. Companies are pursuing sustainable production alternatives, but face numerous implementation challenges. Our industry requires customized solutions, not only for large companies but also for SMEs. We call on politicians to take action."

Fnli.nl

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