FNLI in protest against high energy tax in food sector
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FNLI in protest against high energy tax in food sector

  • 30 March 2021

Food companies subscribe to the need for sustainability like no other. To realise the energy transition in the food industry, a fairer system of energy taxes and subsidies is needed. The food industry is one of the industries that leads the way in reducing CO2 emissions, and its factories are among the most efficient in the Netherlands. But the imbalance in the current system of levies and subsidies makes it more difficult for food companies to achieve their sustainability ambitions, according to FNLI.

The food industry performs very well in terms of sustainability and is one of the frontrunners in the energy transition. For years, the sector has successfully applied energy-saving measures to reduce CO2 emissions. However, an increasing number of food producers are now in danger of being hampered in their further sustainability efforts. Food companies pay a disproportionately high contribution to the Sustainable Energy Deposit (ODE), which finances the Stimulation of Sustainable Energy Production and Climate Transition (SDE++) subsidy, but have little or no opportunity to make use of it.

FNLI calls for fairer organisation of energy taxes and subsidies

The FNLI wants to continue to contribute to subsidies that support techniques that help reduce CO2 emissions. However, there is currently a great disparity in this system, with food companies being hit disproportionately hard. Indeed, since last year, some food companies have been paying up to 400% more in ODE tax while the average increase in the industry is 140%. And large industries that run on oil and coal are exempt from the levy. The disparity is further exacerbated by the fact that companies in the food sector have little or no access to the subsidy while the same large industry does receive the subsidy.

Invitation to discuss proposed solutions

FNLI is appealing to the negotiators and the person forming the new cabinet for a fairer arrangement of energy taxes and subsidies for the energy transition. The FNLI invites them to discuss the concrete proposals and solutions it has put forward.

View the Factsheet ‘Disbalans tussen energiebelasting en subsidie voor levensmiddelenindustrie’

Source: FNLI