In an effort to curb further biodiversity loss, the Netherlands, together with other OECD countries, has committed to achieving Target 18 under the ‘Kunming-Montreal Global Biodiversity Framework’1. This commitment instructs that the Dutch government identifies subsidies harmful to biodiversity by 2025 and eliminates, phases out, or reforms incentives by 2030, starting with most harmful incentives and scaling up positive ones. Financial public incentives, encompassing subsidies, tax cuts, and guarantees, among others, are defined in accordance with WTO and OECD standards and in this context referred to as biodiversity harmful subsidies (BHS).
This report outlines a methodology for fulfilling the initial phase of this commitment by identifying Dutch financial public incentives detrimental and beneficial to biodiversity.
Our proposed methodology builds upon OECD Guidelines and draws lessons from other national assessments (such as those in Italy, Germany, France, and Switzerland) and the quickscan conducted by RVO. Additionally, the assessment aligns with the EU Commission’s draft methodology of Environmentally Harmful Subsidies (EHS).
A notable addition to our methodology is guidance on the compartmentalisation of large incentives and soliciting expert recommendations on reforming incentives to mitigate biodiversity harm, aiding policymakers in future adjustments. Currently, the ‘Medium’ assessment approach seems most appropriate for the ministry of Agriculture, Nature and Food quality as it provides a more extensive analysis than the quickscan without overwhelming complexity, with five experts involved. For other key ministries — Infrastructure and Water Management (I&W), Economic Affairs and Climate Policy (EZK), and Internal Affairs and Kingdom Relations (BZK)—a basic approach initially in 2024 can inform a collaborative national report by 2025, with the potential for more in-depth analysis thereafter.