Policy Overview
The Netherlands’ SDE++ scheme is a premier global example of the Carbon Contract for Difference (CCfD) model, designed to bridge the ‘unprofitable component’ of decarbonization technologies. For CCS and CCU, the scheme provides a 15-year operating subsidy that covers the gap between the full project cost (Base Price) and the market value of avoided emissions (EU ETS Price).
In 2024, the scheme was significantly updated with a maximum subsidy intensity of €400 per tonne of CO2 saved. SDE++ has been instrumental in the FID of the Porthos project, providing €2.1 billion in grant reservations for major industrial players in the Rotterdam area. Critically, as of 2024, the scheme now supports cross-border CO2 storage—allowing Dutch industrial emitters to sequester carbon in Norwegian North Sea reservoirs—solidifying the Netherlands’ role as Europe’s central carbon management hub.