Key changes include the introduction of harmonised minimum tax rates, which will be updated annually, and stricter oversight to ensure consistent implementation. However, member states retain some flexibility in setting their own rates, so differences between countries may still arise.
Implications for companies
The revised Energy Taxation Directive (ETD) introduces a fundamental shift to tax energy products based on their CO₂ emissions and energy content, rather than volume. This system will significantly impact all energy users, particularly in industry and transport.
Companies relying on fossil fuels can expect to face higher taxes, while those opting for renewable electricity will benefit from lower rates or even exemptions under certain conditions. Exemptions are being phased out for fossil fuels, such as those previously granted for airfare or maritime transport within the European Union. The ability for member states to offer reduced rates is being restricted with the revised ETD.
The ETD revision acts as a “stick” to discourage polluting energy use. In parallel, initiatives like the Clean Industrial Deal (CID) serve as the “carrot,” offering state aid, subsidies, and investment support to encourage clean technology and industrial decarbonisation.
The current state of play: The Environmental Tax Act (Wbm)
Energy taxation is a key component of the Dutch Environmental Tax Act (Wet belastingen op milieugrondslag, Wbm), which was updated at the start of 2025 to align with recent EU developments and anticipated changes to the ETD.
In the Dutch system, energy tax is generally levied on suppliers of natural gas or electricity. However, in specific events, the liability shifts to consumers in case of self-consumption or purchases at trade fairs. Currently, degressive tax rates are set to shift to progressive rates, implying higher costs for increased energy use. Please note that for 2025, the energy tax on natural gas will temporarily decrease.
Dutch energy tax legislation contains a range of exemptions with recent proposals designed to support the Fit for 55 goals, encourage innovation, and ensure fair taxation across different sectors. These measures are particularly relevant for businesses evaluating their energy strategies, as they impact operational costs and different compliance requirements. Below is an overview of key exemptions and recent changes:
- Self-generated energy: Companies using self-generated energy can be exempt from tax. Especially relevant for investing in renewable energy sources such as solar panels or wind turbines.
- Resale exemption: Businesses that purchase and resell energy without using it themselves can avoid double taxation, provided administrative requirements are met. This exemption ensures that only the final consumer is taxed.
- Abolished exemptions: Exemptions for electricity and gas used in metallurgical and mineralogical processes will end. The removal of these exemptions increases energy expenditure for energy-intensive industries such as steel, aluminium, and cement production.
- New exemptions: Electricity used for hydrogen production by electrolysis will be exempt from the energy tax. By lowering the cost of producing hydrogen from renewable sources, the exemption encourages investment in clean energy infrastructure
Under the revised Energy Taxation Directive, the aviation and maritime sectors will face higher fuel taxes, particularly for operations within the European Union. However, the international nature of these industries complicates uniform application, as flights and shipping outside the EU or on international routes often remain exempt. This may create competitive disparities and limit the effectiveness of the new tax rules within EU borders.
To prepare for these changes and ensure compliance, contact our specialists for tailored guidance.
Future prospects: Tax plan 2026
Looking ahead, at a national level, the Dutch cabinet has published the 2026 Tax Plan, which includes several notable changes. However, under the current state of the Dutch government (now in caretaker status following the collapse of the Schoof I cabinet), a stand-still has been created with regards to the proposed climate policy action by the EU.
At EU level, the implementation of the revised Energy Taxation Directive, originally targeted for June 2025, remains delayed due to the need for unanimous approval among Member States. The Dutch demissionary government, with its limited mandate, will not be in a position to take decisive action on this file, further postponing national adaptation and alignment with EU energy taxation reforms.
As these changes develop into financial and operational impacts, our Sustainable Tax team can help you stay informed and is available for consultation if you have any questions
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