Netherlands SDE++ Climate Transition Incentive Scheme
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.
National Governance Context
Netherlands Overview
Aggregate National Maturity Index (Peak Strength)
Governed Policies
4
Identified Projects
30
Related Policy Network
Directly Linked Assets
OCAP
Transport — 0.5 Mtpa
AEB Amsterdam
Full chain — 0.5 Mtpa
Shell Netherlands Pernis Refineries CCS
Full chain — 0.75 Mtpa
Onyx plant - Port of Rotterdam
Capture — 2.5 Mtpa
H2M Eemshaven
Capture — 1.837 Mtpa
NL CCS Direct Injection Phase 2
T&S — 5 Mtpa
SeaSeaS (Port of Amsterdam)
Transport — 0 Mtpa
Air Products for Exxonmobil Botlek Rotterdam refinery
Capture — 0.958 Mtpa
Air Liquide hydrogen facility Rotterdam (Porthos)
Capture — 0.5 Mtpa
Aramis CCS transport phase 1
Transport — 12.9 Mtpa
H-vision plant 1
Capture — 1.3 Mtpa
H-vision plant 2
Capture — 0 Mtpa
Hydrogen 2 Magnum (H2M)
Capture — 1.3 Mtpa
Porthos onshore transport
Transport — 10 Mtpa
L10 CCS
T&S — 5 Mtpa
L10 CCS phase 2
Storage — 3 Mtpa
Aramis CCS storage phase 1
Storage — 7.5 Mtpa
Porthos offshore transport and storage
T&S — 2.5 Mtpa
Aramis CCS storage phase 2
Storage — 3.1 Mtpa
Shell Netherlands Refineries biodiesel
Capture — 0.38 Mtpa
Shell Netherlands Pernis Refineries CCU
CCU — 0.75 Mtpa
Twence Hengelo facility (Boeldershoek)
CCU — 0.1 Mtpa
Azur Zeeland Refinery
Capture — 0.8 Mtpa
Yara Sluiskil fertiliser
Capture — 0.8 Mtpa
NL CCS Direct Injection Phase 1
T&S — 3 Mtpa
RWE Eemshaven power plant (BECCUS project)
Capture — 8 Mtpa
RWE Amer power plant (BECCUS project)
Capture — 3 Mtpa
H2-gateway
Full chain — 1.8 Mtpa
CO2NEXT terminal phase 1
Transport — 5.4 Mtpa
CO2NEXT terminal phase 2
Transport — 10.3 Mtpa