Netherlands Nearly Doubles Climate Investments Over Four Years, Reaching €41 Billion

The Netherlands invested €40.9 billion in climate-related measures in 2023—an 80% increase compared to 2019—according to new figures from Statistics Netherlands (CBS). The rise was primarily driven by increased spending on electric vehicles, solar panels, heat pumps, and upgrades to the electricity grid.

This marks the first assessment of climate-focused investments under updated European guidelines, which categorize such expenditures across five areas—all of which saw notable growth since 2019.

The most significant increases occurred in transport and energy networks. Investments aimed at reducing transport-related CO₂ emissions nearly doubled, climbing from €8.9 billion in 2019 to €18 billion in 2023. Of this, €12 billion was allocated to fully electric and hybrid passenger vehicles.

Sustainable transport accounted for 44% of all climate-related spending last year. This includes investment in electric cars, bicycles, public transportation, and freight systems that rely on rail or inland waterways—seen as greener alternatives to road and air freight.

Renewable energy also saw robust growth. Investments in this area rose by 77% over four years, reaching over €10 billion in 2023. That included €4.6 billion for solar energy, €2.7 billion for wind power, and €2.1 billion for heat pumps. While solar showed the fastest growth between 2019 and 2023, CBS noted a slight slowdown in solar expansion during the most recent year.

As more electricity is now generated from renewable sources, the country's energy infrastructure required corresponding upgrades. Spending on electricity and heat networks more than doubled, from €2.8 billion in 2019 to €5.9 billion in 2023.

In contrast, investments in energy efficiency—such as building and industrial upgrades—rose only modestly. The largest subcategory here was home and building insulation, which reached €5.6 billion in 2023.

Households contributed over 30% of total climate-related investment last year, focusing on electric vehicles, rooftop solar systems, heat pumps, and residential insulation. Compared to 2019, household investment in climate action more than doubled.

Private companies were responsible for 64% of total climate spending, channeling funds toward vehicle electrification, clean energy generation, and grid improvements.

Although the government's direct financial contribution was relatively limited—mainly confined to transport infrastructure projects—its role was critical in shaping the investment landscape through subsidies and incentive schemes. Support programs helped fund heat pump and solar panel purchases, as well as broader energy-saving upgrades for homes and businesses.