Sustainability industry under pressure after scrapping IKC

FME, the interest association of technology companies in the Netherlands, has expressed concerns about the Dutch government's recent abolition of the European IKC scheme. This Indirect Cost Compensation (IKC) scheme compensated for the CO2 tax that electricity companies passed on to their customers. As a result, fossil energy consumers contributed to sustainability through electrification.

While other European countries are expanding their IKC scheme, the Netherlands is abolishing it, threatening to fall behind. FME fears that this will further worsen the investment climate for Dutch industry.

Dutch industry pays €1.4 billion in CO2 taxes through the European ETS system, which in turn sells emission rights to electricity producers. The proceeds of this could easily finance the IKC scheme, which encouraged companies to become more sustainable by electrifying their energy-intensive processes.

However, outgoing Minister Micky Adriaansens (Economic Affairs and Climate) recently decided to discontinue the IKC scheme. FME president Theo Henrar criticizes this decision and argues that this leaves €835 million in potential support for industry unused, while other European countries are improving their conditions.

FME further emphasizes that accelerating electrification is essential for making industry sustainable. It calls on the cabinet to support both small and medium-sized enterprises (SMEs) and larger industry in their sustainability efforts, especially given the increasing problems with the power grid and possible increase in the energy tax on gas.

Fme.nl