Subsidies have a negative impact on biodiver­sity

A large share of Dutch subsidies has negative consequences for biodiversity. That is the conclusion of research by Wageningen Social & Economic Research, CE Delft and Naturalis. The researchers examined 102 subsidies, tax benefits and other financial schemes across five ministries.

For the food industry, agricultural, energy and water-related schemes are especially relevant. According to the study, around half of the assessed schemes negatively affect biodiversity.

Agricultural subsidies show mixed results

Schemes aimed at nature management and nature restoration generally receive a positive assessment. These include subsidies for national parks and agri-environmental management. The schemes support ecosystems and habitats for plants and animals.

The picture is less positive for larger agricultural subsidies. The basic payment under the Common Agricultural Policy received the rating ‘mixed, predominantly negative’. According to the researchers, the scheme mainly supports the current agricultural system. Incentives for sustainability remain limited.

Several sustainability subsidies for livestock farming also face criticism. Subsidies for manure processing, for example, do not reduce manure production itself. As a result, pressure on nature and the climate remains in place.

“What stands out to us is that biodiversity often remains underexposed in subsidy policy,” says researcher Monica van Alphen of Wageningen Social & Economic Research.

Fossil fuel benefits and water use

The report also looks at schemes outside the agricultural sector. Researchers assess the tax exemption on drinking water for large-scale users negatively. According to them, the scheme encourages additional water consumption.

The report also highlights exemptions and tax reductions within energy and coal taxation. These lower the cost of fossil fuels, further increasing pressure on biodiversity.

According to Van Alphen, this calls for sharper choices within subsidy policy. “Subsidies are generally designed with economic or societal objectives in mind. The effects on nature and biodiversity are usually not taken into account.”

Wur.nl