Investment in climate change mitigation nearly doubles in four years

© ANP / Jordi Huisman
The Netherlands invested nearly 41 billion euros in climate change mitigation in 2023. That was almost double the 23 billion euros invested in 2019. This increase was mainly due to rising investment in electric cars, the electricity grid, solar panels and heat pumps. This is according to new figures released by Statistics Netherlands (CBS).

These are the results of an initial analysis of climate-related investment prepared according to new European guidelines.

Largest increase in transportation and energy networks

Climate-related investment is categorised into five themes and there was an increase across each of these themes. Investment in energy networks and transport (carbon-efficient mobility) increased by the most. In both these areas, investment doubled compared to 2019. Investment in renewable energy increased by 77 percent, while investment in energy efficiency (of homes, buildings and production processes) and other climate-related investment increased only slightly.

Over 12 billion euros invested in electric and hybrid cars

Climate-related investment in transport increased from 8.9 billion euros in 2019 to 18.0 billion euros in 2023. Investment in all-electric and hybrid passenger cars rose particularly sharply. In 2023, households and businesses together invested 12.2 billion euros in this area.

Investment in transport makes up the largest share of climate-related investment at 44 percent. This includes investment in sustainable forms of transport, including electric cars and bicycles, as well as public transport. Goods transport includes transport by rail and inland waterways, as more climate-friendly alternatives to transport by road or air.

Around 10 billion euros invested in renewable energy

More than 10 billion euros was invested in the production of renewable energy in 2023 - an increase of 77 percent compared to 2019. This money went mainly into solar panels (4.6 billion euros), wind farms (2.7 billion euros) and heat pumps (2.1 billion euros). The largest increase in investment in the 2019-2023 period was in solar energy, although the rate of increase levelled off in 2023.

More investment in the energy grid

As ever more electricity is generated from renewable sources, more investment is required in our power grid. The total amount invested in energy networks (including the electricity grid and heating networks) has risen sharply in recent years, from 2.8 billion euros to 5.9 billion euros between 2019 and 2023.

Unlike the other themes, investment in improving energy efficiency has only increased slightly in recent years. Investment in insulating homes and other buildings (5.6 billion euros) accounted for the largest amount in this theme.

Households contribute over 30 percent of total investment

Over 30 percent of total climate-related investment in 2023 came from households. This mainly involved the purchase of electric cars, solar panels, heat pumps and home insulation. Climate investment by households increased by the most, in relative terms, more than doubling since 2019.

Companies account for 64 percent of climate-related investment. Most of that investment goes into electric and hybrid vehicles, the electricity grid and renewable energy (wind power and solar panels).

The role of the government as an investor is limited. As an owner and investor, the government only has a role in transport infrastructure. It does play an important role in financing investment projects, however. For example, the government provides grants to businesses and households to encourage investment in heat pumps and solar panels, as well as grants for energy-saving measures.

Sources