Dutch firms slash green investment as grid hits limits

Dutch businesses spent far less on green projects in 2024, reports the Dutch Statistics Office CBS. Investment in renewable energy, clean air technology, and other environmental measures declined by 39% relative to 2023. This sudden drop puts the Netherlands at risk of failing to meet its 2030 climate targets.

Companies invested approximately €1.6 billion in environmental projects last year, down from €2.6 billion the previous year. Most of the cuts came from heavy polluting sectors such as manufacturing, mining, and energy utilities. Spending on wind parks and air-cleaning technology almost stopped. Green projects accounted for only 9% of total business investment, well below recent years.

At the same time, costs associated with earlier green investments increased. Companies paid more for maintenance, interest, and depreciation on projects started when borrowing was cheaper. As a result, total environmental costs increased by 18%, despite the launch of a few new projects. This left firms with less money to invest in new solutions.

Obstacles to the transition

Several obstacles impede companies, according to the analysis. The electricity grid is fully utilized in many areas, making it difficult to connect new factories or clean energy systems. Many firms also report that green options remain too expensive, financing is more difficult to obtain, and skilled workers are in short supply. Unclear or changing government policies add to the hesitation.

Looking ahead, fewer companies plan to invest in climate-friendly operations in 2025. With current policies, emissions cuts may fall short of the legal target of a 55% reduction by 2030. Without faster investment, the Netherlands may face tougher and more costly measures later on.