Green investment by business was down in 2024

© ANP / Robin Utrecht
Businesses in the Netherlands invested 39 percent less on improving their environmental performance in 2024 than in the previous year. Investment in cleaner air and clean energy was down, in particular. In financial terms, however, total environment-related costs were 18 percent higher, mainly due to higher depreciation costs and interest paid in connection with previous green investments. This is according to new figures from Statistics Netherlands (CBS).

Green investment refers to the cost of the measures taken by businesses to protect, restore and improve the environment, such as air and wastewater treatment plants or floor surfaces that prevent leakages into the ground below. The figures in this article relate to companies active in the mining and quarrying industry, the manufacturing industry and the public energy and water supply sectors. Together, these sectors account for almost all green investment.

Green investment represented a smaller share of total investment

In 2024, companies spent 1.595 billion euros on green investment, down 39 percent from 2023. The share of green investment was also lower in relation to total investment. Nine percent of the total amount invested went towards green investment, compared to an average of 14 percent between 2020 and 2023.

Less invested in clean air and clean energy

Green investment is subdivided into investment in clean water, air and energy, preventing soil pollution, handling waste, reducing noise pollution and landscaping. The most is invested in clean air and energy - measures such as reducing air pollution, saving energy or generating renewable energy.

Companies invested less in renewable energy in 2024 than before, in particular. The growth in the number of wind turbines decreased, in particular. Business is also investing less in other measures that benefit the environment. Green investment fluctuates from year to year because it often involves one-off spending on equipment such as a wind turbine, so the amount invested depends on a relatively small number of large-scale projects.

Total environment-related costs continue to rise

In 2024, total net financial costs with respect to measures to improve the environment were 2.763 billion euros. That was 426 million (18 percent) higher than in 2023. Since 2020, net green costs have increased by 1.260 billion euros, an average of over 16 percent per year.


This rise in net green costs is mainly because the operating costs of existing green activities were 290 million euros higher. These consist mainly of depreciation and interest paid in relation to green investments made over the previous 25 years. These rose from 2.324 billion euros in 2023 to 2.582 billion euros in 2024. In addition, business has also seen a rise in costs for other environmental activities, such as disposing of water treatment sludge and waste from air purification facilities. These costs increased from 333 million euros in 2023 to 367 million euros in 2024.

Companies also spent 62 million euro more on environmental taxes and outsourced environmental activities, such as waste disposal, compared to 2023. Government-subsidised green investment was down by 73 million euros. Government subsidies reduce the costs of depreciation and the interest paid on credit for green investment, thereby leading to lower net environmental costs.

Sources

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