Europe raises 43 billion euros from the sale of CO2 rights, and the Netherlands also receives a lot of money

• Charlotte Klein

  editor Climate

Europe has raised more than 43 billion euros in 2023 by selling rights that allow companies to emit CO2. 1.3 billion euros of this benefited the Netherlands, according to figures from the European Environment Agency.

The figures refer to the first year that this money is received must spend on climate projects. Before that it became alone encouragedbut it was not mandatory. It is difficult to track exactly what the Netherlands spends it on, because the money is not earmarked.

In 2017, European income from CO2 rights was considerably less: 5 billion euros. Because the CO2 price has risen since then, revenues are increasing. The European Environment Agency expects that this will only increase in the future.

European member states have been making good money for a few years now from this emissions trading system (ETS), which has been in existence since 2005. It was designed to encourage companies that emit a lot to become more sustainable and thus reduce their CO2 emissions, because emissions cost money. . About 10,000 companies (which emit a lot) in 30 countries have to buy these rights. Together they are responsible for about half of all CO2 emissions in the EU.

Of that more than 43 billion euros, 33 billion euros goes directly to the member states. The rest goes to European funds from which, for example, innovation projects can be financed. For example, it was recently announced that billions will go towards the development of batteries for electric vehicles and the production of renewable hydrogen.

Below you can see where the European member states allocated their money in 2023, mainly to domestic projects. Two-thirds of that expenditure on domestic projects went to energy, public transport and mobility. Spending on international projects, for example in the form of development cooperation, lags far behind: around 100 to 200 million euros per year.

After Germany, Poland, Italy, Spain and France, the Netherlands receives the most income from this CO2 market. Germany raised 7.6 billion euros with the auction.

The Ministry of Finance cannot say exactly what the Netherlands spends this money on. A spokesperson: “According to Dutch budget rules, income and expenditure are separated. This means that revenues, such as those from CO2 rights, are generally not earmarked for certain expenditures.”

The money cannot be tracked, but the Netherlands must spend exactly as much as it takes in. So the Netherlands must spend at least 1.3 billion euros, although it may also come from another source. The ministry has announced that by 2023, most of the sustainability money will have gone to a subsidy pot to make homes more sustainable.