Is the ERE scheme a subsidy?
The ERE scheme is not a subsidy. Not a single euro of public money is involved. The payout you receive as a home charger is paid by oil and fuel companies — not by the taxpayer. This article explains exactly how it works, where the money comes from, and why the distinction with a subsidy matters.
Where does the money for ERE certificates come from?
The ERE scheme operates on the "polluter pays" principle. Companies that bring fossil fuels onto the Dutch market — think Shell, BP and TotalEnergies — are legally required to reduce the CO₂ emissions of their fuels. This is laid down in the Fuel Transition Obligation (BTV).
To meet that obligation, fuel suppliers have two options:
Decarbonise themselves — for example by blending in biofuels.
Buy ERE certificates — from parties that demonstrably save CO₂, such as home chargers with an electric car.
The money you receive as a home charger therefore comes directly from the market — paid by the companies that sell fossil fuels.
Why is the ERE scheme not a subsidy?
With a subsidy, the government pays part of the costs or provides financial support from public funds. Think of the EV purchase subsidy (SEPP) or the subsidy for solar panels. If the subsidy scheme stops or the budget runs out, the benefit ends.
The ERE scheme works fundamentally differently:
It is a market mechanism. The government has not reserved a budget for ERE payouts. Instead, it has imposed an obligation on fuel suppliers. That obligation creates demand for ERE certificates, and that demand sets the price. The government facilitates the market but does not finance it.
The money comes from the polluter. With a subsidy, all taxpayers contribute. With the ERE scheme, the companies that sell fossil fuels specifically pay. It is a direct financial incentive flowing from the fossil industry to clean mobility.
The scheme is enshrined in law until 2030. The Fuel Transition Obligation is not a temporary subsidy round with a limited budget. The obligation runs until at least 2030 and tightens every year — from 14.4% mandatory CO₂ reduction in 2026 to 28.4% in 2030.
Why does this distinction matter?
The difference between a subsidy and a market mechanism is relevant for several reasons:
No budget cap. Subsidies have a finite budget — when it's gone, it's gone. The ERE scheme has no budget limit. As long as there is demand for certificates, they are traded and paid out.
Not dependent on political choices. Subsidies can be abolished or reduced in the next budget. The ERE scheme is based on European legislation (RED III) and anchored nationally in the Fuel Transition Obligation. That makes the system more stable than a subsidy scheme.
The price fluctuates. The downside of a market mechanism is that the payout is not fixed. With a subsidy you know exactly what you'll get. With the ERE scheme your payout depends on the market price of ERE certificates, which fluctuates based on supply and demand.
Does the ERE scheme have nothing to do with the government, then?
It does — but differently from a subsidy. The government has designed and legally anchored the scheme. It sets the rules:
The obligation — how much CO₂ reduction fuel suppliers must achieve each year.
The supervision — the Dutch Emissions Authority (NEa) supervises compliance and manages the Transport Energy Register.
The framework — which energy sources count, how the conversion to EREs works, and what requirements chargers and meters must meet.
The government is therefore the regulator and supervisor, but not the payer.
Frequently asked questions about EREs and subsidies
Is the ERE payout tax-free?
The tax treatment of ERE income for private individuals depends on your personal situation. Consult a tax adviser or watch the guidance from the Dutch Tax Administration for the most up-to-date information.
Can the ERE scheme simply be abolished?
That is unlikely. The scheme is based on European legislation (RED III) and anchored nationally in the Fuel Transition Obligation, which is legally enshrined until at least 2030. Full abolition would require a change in the law.
Do I get a fixed amount per kWh?
No. Because the ERE scheme is a market mechanism, the payout fluctuates. In Q1 2026 the gross payout was around €0.07 to €0.15 per kWh. Read more in our article on the price of an ERE.
What do I need to take part?
You need a charger with an integrated MID-certified meter and a contract with a recognised booking service provider. Read more in our complete guide to ERE certificates.
As a consumer, do I indirectly pay through higher fuel prices?
The costs that fuel suppliers incur to buy ERE certificates can partly be passed on at the pump. The effect on the price per litre is limited, however, because the cost is spread across the total volume of fuel sold.