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Date: November 19, 2024
Inés Platini
By Inés Platini
Netherlands

Dutch Government reverses electric vehicle incentives, challenging the sector

Reduction in the motor vehicle tax (MRB) adjustment for electric cars, a pause in the implementation of Low Emission Zones, and the removal of subsidies for EV purchases are some of the changes proposed by the new Dutch cabinet. Below are all the details.
Dutch Government Reverses Electric Vehicle Incentives, Putting the Sector at Risk
Dick Schoof, Prime Minister of the Netherlands.

The Netherlands, renowned for its advancements in sustainability, is now facing challenges regarding the European Union’s (EU) electromobility targets.

In this context, the Dutch cabinet led by Dick Schoof recently announced changes to incentives for electric vehicles (EVs).

Among the main points, a reduction in the motor vehicle tax (MRB) adjustment, which benefited EVs due to their increased technical weight from batteries, stands out.

This measure, scheduled to come into effect in 2026 instead of the previously planned 2030, could impact both consumers and companies that had committed to sustainability.

According to the organisation BOVAG, this measure contradicts sector expectations, which advocated for stable and predictable policies to ensure a favourable environment.

The cabinet is undermining fragile confidence in government support for sustainable decisions,” states the trade association representing over 8,000 mobility entrepreneurs in a statement.

This is not the only concern.

Michel Bayings (Emobility Consulting France/Netherlands).

Michel Bayings, Senior Management Consultant at Emobility Consulting France/Netherlands, tells Mobility Portal Europe that while the country’s goals are commendable, many are also ambitious.

“With more right-leaning governments, we will see efforts to cut costs associated with meeting targets and to eliminate certain laws and regulations that hinder businesses,” he asserts.

He adds:

It’s not just about ‘green’ measures; these have a direct impact on health and associated costs, which can breathe new life into innovative companies within the countries.”

For this reason, he argues that “green” can be seen as an opportunity rather than a threat.

What is the Dutch political and economic perspective?

The shift towards a more conservative-leaning government has driven a more pragmatic approach to economic issues.

In this setting, Water Management Minister Barry Madlener confirmed that subsidies for electric vehicles will decrease.

Why?

Due to a miscalculation and an overspend on EV subsidies, it was found to be unsustainable. That’s why the Finance Minister said: this is not feasible,” he explained to the House of Representatives.

Minister Madlener argued that the reduction in EV incentives responds to the need to balance tax revenue, while maintaining accessibility for all drivers.

“As a result, the electrification of the car fleet may slow slightly, but I believe it will remain attractive,” he asserts.

Water Management Minister Barry Madlener.

Uncertainty surrounding the Low Emission Zone

The pause in the implementation of the Low Emission Zone (LEZ) for urban logistics, initially planned for 2025, reflects another contentious decision.

Although the Government plans to establish uniform agreements between municipalities, the delay creates uncertainty among sector players.

Likewise, the government programme indicates that no additional funds will be allocated for road safety, contrasting with the increase in accidents recorded in recent years.

These key issues were highlighted in the recent House of Representatives session, where the effectiveness of current policies to meet emission reduction commitments was questioned.

A setback or a strategic pause?

Despite the criticism, expert Michel Bayings believes that while the goals may be delayed, they are still achievable.

“The movement towards sustainability continues and cannot be stopped, only slowed down slightly. No government can halt it,” he affirms.

Is it problematic if the nation fails to meet its goals?

“While I appreciate the ambitions and targets, achieving them a few years later is still a positive outcome,” the consultant asserts.

He underscores: “Sometimes, objectives are not set by science but through political agreements.”

In this sense, the main challenge is fostering trust among citizens and the private sector in this industry.

Policy stability, a clear regulatory framework, and encouraging investment will be crucial to preventing the Netherlands from losing its leadership in the transition.

This is evident in the registration figures.

During the first three quarters of this year, 90,266 electric vehicles were registered, representing a 6.2% increase compared to 2023 (84,958 sales), according to figures published by BOVAG.

Regarding charging infrastructure, the Netherlands has more than 157,000 public and semi-public stations available nationwide.

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