It was already known that the Flemish government provides compensation support to major CO2 emitters. But according to the newspaper De Standaard, that support has increased from 36 million euros in 2019 to almost 270 million euros today. The top 10 beneficiaries include large companies, such as ArcelorMittal, BASF, ExxonMobil, and TotalEnergies.
The support concerns the “compensation for indirect emission costs” that Flanders gives to energy-intensive companies that have increased electricity bills due to the European Emissions Trading System (ETS).
The ‘famous’ ETS
Companies covered by ETS-1 must purchase emission allowances for every ton of CO2 they emit. Revenue from these ETS allowances flows back to Flanders, which uses part of it to offset the indirect emissions costs.
“If we no longer support our industrial companies financially with this mechanism, they will close their door in Flanders,” responds Flemish Minister-President Matthias Diependaele (N-VA). In exchange, the companies must submit a climate plan, “with an obligation to invest in energy-saving measures,” he says.
‘No control whatsoever’
But according to Flemish MP Aimen Horch (Groen), who asked Diependaele a parliamentary question on the matter, this is meaningless. “There is no control whatsoever,” says Horch.
“A company like ArcelorMittal is making a real effort to produce green steel, so you want to support that. However, TotalEnergies and ExxonMobil are generating substantial profits in Belgium.
Meanwhile, ExxonMobil’s greenhouse gas emissions rose by almost 10% between 2018 and 2023. And yet, in 2024, it received more than 15 million euros in climate subsidies.”
According to other sources, TotalEnergies emitted 376 MT of CO2 equivalent last year, a decrease of approximately -2.6% compared to 2023. To offset TotalEnergies’ annual emissions in 2024, you would need approximately 53.7 million football fields of mature forest, or about 376,000 km², comparable to the surface area of Germany.
According to historical analyses, TotalEnergies is estimated to contribute 0.95% to global CO2 emissions. In contrast, the American company ExxonMobil is considered one of the biggest polluters in the fossil fuel industry.
Greenpeace report already pointed to these practices
Last year, Greenpeace published ‘The polluter gets paid’. According to that report, Belgian companies that pollute the climate receive at least 4.4 billion euros in tax money every year.
The most significant chunk – 2.3 billion euros – also comes from free emission allowances under the ETS. Emission allowances are distributed free of charge in sectors such as chemicals and refining, because, according to the government, there is otherwise a significant risk that companies would relocate outside Europe.
According to Greenpeace, the value of free emission allowances was the highest at ArcelorMittal Ghent in 2022, at more than 567 million euros. That is twice as much as the second company in the table, BASF Antwerp.
In addition, polluting companies in Belgium receive tax money through exemptions from federal excise duties on electricity (1.3 billion euros) and gas (259 million euros), through exemptions from green energy certificates and cogeneration certificates (397 million euros), and compensation for indirect emission costs (179 million euros), Greenpeace adds.
The call made by Greenpeace at the time of the report’s publication, namely that “only companies with genuine climate plans should be eligible for subsidies, to a limited extent and on condition that this support leads to a reduction in CO2 emissions,” seems to have fallen on deaf ears.
ExxonMobil’s net profit for the first quarter of this year is approximately 7.1 billion euros, compared to 3.7 billion euros for TotalEnergies.
BASF posted a profit of 808 million euros for the first quarter, compared to 736 million euros for ArcelorMittal. These are global figures and, therefore, do not refer to each location within a country.
