Climate Tax

Tax often plays an important role when it comes to climate change and climate-related projects and activities.

On the one hand, there are specific Dutch taxes relating to climate change (e.g. CO2 levy, waste tax, coal tax and energy taxes). The Dutch government, as stated in the Climate Agreement, actively uses taxation as an instrument to reward sustainable behaviour and discourage unsustainable behaviour.

On the other hand, climate change-related activities often have other specific Dutch direct tax considerations (e.g. tax deductibility of funding costs, depreciation). Also, VAT and real estate transfer tax often play an important role in sustainability and circularity.

Circular revenue models

We have been involved in various real estate projects where circular revenue models were key. Within these revenue models, new performance models and maintenance agreements are being tested. Such contractual shifts have an impact on owners, suppliers and users as there are shifts in ownership, risk/financing and use. For example, purchase is, from a VAT perspective, generally taxed differently or at a different point in time than rent/lease. But a VAT burden may also be borne by other parties because of an amended fact pattern. In addition, in the case of legal separation of ownership through ground lease or a right of superficies, VAT and real estate transfer tax aspects need to be considered.

The Houthoff Tax Team will happily discuss these Dutch tax considerations with you in more detail.
  • Advised various private and public organisations and public-private partnerships on the State aid rules, the competition rules and regulatory requirements regarding initiatives to reduce CO2 emissions in production processes, producing renewable energy and realising innovative applications and circular production methods. Moreover, the team was involved in various proceedings at national and EU level relating to measures introduced to realise climate objectives at local and national level.
  • Advised sponsors on the financing for several offshore and onshore windfarms in the Netherlands and Belgium.
  • Advised Van Oord on green term loans to finance two new vessels using cleaner technologies.
  • Advised senior lenders on the financing of the first metal recycling company in the Netherlands using a blended finance structure with financial support under the Energy Transition Facility from the Dutch department of economic affairs.
  • Advised Renewi on its green bond financing.
  • Advised various pension funds on implementing the Dutch Pensions Funds Agreement (IMVB-convenant).
  • Advised fund managers, investment firms and institutional investors on complying with the requirements under the Sustainable Finance Disclosure Regulation (SFDR).
  • Advised Climeworks AG on establishing a joint venture with SkyNRG B.V. to use CO2 captured from the air to produce sustainable aviation fuels, and related matters.
  • Advised fund managers, investment firms and institutional investors on implementing environmental, social and governance (ESG) related clauses in fund documentation, policy documents and fiduciary asset management agreements.
  • Advised Porthos as project counsel on acquiring a mining installation and related permits to store CO2 in empty gas fields beneath the North Sea, drafting related agreements and other matters. The Porthos Project is the largest CO2 reduction project in the Netherlands which aims to capture and store 37 million tonnes of CO2 in a 15-year period. Porthos is recognised by the European Union as a project of common interest.

Key Contact

Tax Lawyer | Partner
+31 20 605 69 82
+31 6 1393 6351