The news that the province of Groningen opposes the proposed tax increase on energy by Minister Rob Jetten (D66) pleases us. The province of Groningen believes that companies cannot yet do without fossil fuels and that there are insufficient alternatives available reports the NOS.
According to the fire letter sent by the province to the energy minister, a viable alternative to gas and coal is currently lacking. Although heat and hydrogen networks are being worked on, they are not currently operational and thus businesses cannot use them.
Groningen Commissioner IJzebrand Rijzebol stressed in an interview with RTV Noord that it is unreasonable to massively increase taxes while companies do want to invest in alternative energy sources, but simply do not currently have the opportunities to do so. He therefore calls the proposed tax increase a "brutal tax increase," which could have a major impact on companies in the region, such as those in the Eemshaven industrial area.
Groningen County's opposition to the tax increase is supported by earlier objections from employer organizations. They argue that the proposed tax increase will only work if entrepreneurs have an alternative, which is currently often not the case. MKB-Nederland chairman Jacco Vonhof emphasizes that raising taxes only increases the burden on entrepreneurs, without bringing climate goals any closer.
Ingrid Thijssen of employers' organization VNO-NCW adds that increasing the tax on gas while companies cannot yet fully switch to other energy sources results in higher costs for consumers or displacement of CO2 emissions abroad. This detracts from the efforts of companies that are actually working on greening and making investments to achieve this.
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Groningen's opposition and the support of employer organizations show that there is still a long way to go before companies can fully switch to renewable energy sources. It is important that realistic and viable alternatives are available before there can be a tax increase on fossil fuels. The debate cheerfully continues, seeking a balance between green goals and economic realities.