Dutch Businesses Scale Back Green Investments

Economic Uncertainty and High Costs Dampen Sustainability Efforts

Dutch companies are showing a marked decrease in financial commitment to sustainability initiatives this year, with a significant drop in investment compared to last year. The Central Bureau of Statistics (CBS) attributes this trend to a combination of rising costs and prevailing economic uncertainty.

Economic Gloom Affects Spending

The latest figures from the CBS reveal that only 64 percent of businesses are allocating funds to climate change mitigation measures, down from 68 percent in the previous year. CBS lead economist, Peter Hein van Mulligen, noted that affordability remains a primary concern, compounded by a general sense of economic apprehension.

Challenges for Industry Giants

While smaller enterprises cite economic uncertainty, larger corporations are encountering a different hurdle: a scarcity of viable sustainable alternatives. For sectors like chemicals and metals, transitioning away from fossil fuels presents complex challenges, as current infrastructure often relies on these sources for essential energy generation, which cannot yet be replicated with electricity alone.

Investment Surge Followed by a Dip

This slowdown comes after a period of significant growth, with climate investments nearly doubling between 2019 and 2023, reaching €41 billion. However, early indicators for 2025 suggest a contraction in this area, with many companies planning to reduce their green spending. The hospitality and information and communication sectors, in particular, show minimal investment in sustainability efforts.

In the United States, a similar trend has been observed, with a recent report indicating that 43% of businesses have paused or reduced their environmental, social, and governance (ESG) investments due to economic pressures, according to a PwC survey conducted in early 2024.