Climate Policy Through Taxation
Understand how energy taxes drive renewable adoption and environmental goals while being completely hidden in your utility bills
Last updated: January 2025
Energy tax is a consumption tax levied on electricity and natural gas to incentivize energy conservation and fund renewable energy transitions.
Unlike income tax, energy taxes are invisible to consumers - they're included in the price per kWh/m³ without separate line items.
Energy taxes represent approximately 25-30% of your total electricity bill and 15-20% of your gas bill, but appear as part of the unit price rather than separate line items.
Energy taxes are a key tool for achieving the Netherlands' climate goals by making fossil fuels more expensive relative to renewables.
Higher energy prices encourage conservation and efficiency improvements
Tax revenue funds green energy infrastructure and subsidies
Part of achieving 55% emission reduction by 2030