New Dutch government to cut funds for green H2

The Netherlands' new government could reduce the budget of the country's climate fund by €1.2bn, primarily through cuts to renewable hydrogen support measures.

Four parties announced an agreement to form a coalition government on 16 May and outlined broad policy measures. The agreement includes a "budget supplement" which foresees the climate fund's budget being cut by €300mn in each of the next four years compared with existing plans.

This will be achieved by cutting funds available for the development of batteries and renewable hydrogen "in proportion to the current budget", according to the text. The majority of the cuts could be for renewable hydrogen given that the earmarked budget for this was much larger than for battery-related projects.

Around €9bn of the fund's €35bn budget was set aside for renewable hydrogen support measures, with the bulk to go towards subsidising production projects.

The coalition agreement was reached between the far-right PVV, the centre-right VDD party of outgoing prime minister Mark Rutte, the centre-right NSC, which was formed just shortly before the election last November, and the farmer's citizen movement BBB.

The PVV, led by Geert Wilders, won most seats in the election but had to tone down some of the demands and promises from its election manifesto during the negotiations. In its manifesto, the PVV had pledged to abolish the climate fund entirely, saying that climate policies should "go straight through the shredder".

The parties have retained a general commitment to support renewable hydrogen through the climate fund and note that low-carbon hydrogen made from natural gas with carbon capture and storage (CCS) can be used as a "transitional step" towards reducing emissions "if necessary".

The agreement also says a planned increase in the national CO2 tax will be scrapped and outlines plans to open new nuclear power plants.

The four parties have yet to decide on who will become the new prime minister.

By Stefan Krumpelmann