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The Dutch Economy - Growth Through Green Resources

Updated on 19 February 2024

The Netherlands is a country that has always implemented eco-friendly laws and practices, largely due to the environmentally-conscious government. As an effect of the ‘green’ technologies that have been implemented in the country, statistics have shown that The Netherlands has experienced a great surge of financial success.

Our company formation specialists are able to give you more information on how to get your company to go green!

Green Growth vs Carbon Tax

The Organization for the Economic Co-operation and Development (OECD) defines green growth as a set of 6 environmental and economic factors. They are environmental efficiency, raw material efficiency, natural resources, environmental quality, green policy instruments, and economic opportunities.

The latest data presented by Statistics Netherlands showed that there have been significant improvements in these 6 factors from the period of 2000 to 2016.

A global carbon tax has been proposed for many years. Thus increasing the cost of pollution on the enviroment for big corporations. Will this actually lead to more energy concious decisions? Or will the combination of stimulation, and crafty tricks by big corporations mean this is yet another tax that can be avoided. A carbon tax will lead to big corporations ''buying and selling carbon certificates'' to compensate for carbon emissions.

The Carbontax organisation in UK promoted the idea of introducing a carbon tax. A carbon tax will not save our enviroment single-handedly. But it could price-in the enviromental effects and destruction of companies' doing.

Nowadays, big corporations can buy carbon certificates from companies that compensate their carbon impact by renewable or green projects. Which will look good on paper. But in reality, will it change anything?

Will the proceeds of these taxes actually be invested in renewable projects by the governments receiving these taxes? Or might it be used for other internal policies. If actions are taken on the European level, rules might be applied more effectively. And more difficult for corporations to avoid. In this way it is possible to avoid any single nation to have to sacrifice it's own economy or competitiveness.

If only one nation takes action, multinationals in that nation could simply move their headquarters a few hundred kilometers, to the nearest border if this avoids high costs. Or they may negotiate a deal with that country, to get favourable treatment.

Green growth in the Netherlands

The Dutch economy has increased as an effect of the environmentally friendly laws and regulations of the country. The Netherlands is still dependent on fossil fuel as the main energy provider, but through the use of green resources, the country has been able to decrease greenhouse emissions as well as carbon dioxide emissions.

The Green Growth report as issued by Statistics Netherlands also shows that the ecological footprint of the Dutch population is decreasing. This shows that biodiversity in the country is definitely improving.

The Dutch Central bank is expecting the impact on the Dutch economy from Carbon Tax to be relatively modest. And might be used to improve the ecological footprint by using the earnings to stimulate alternative energy needs.

Furthermore, the reports show that the Netherlands is using its raw materials in a cost-effective way because recycling is encouraged in both personal and corporate capacities.

Our company formation agents can answer all your questions about the environmental laws of the Netherlands and the process of establishing a green business in the country. You can also read our article on how to open a company in the Netherlands.

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