WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/EU/12 
5 April 2012 
 (12-1839) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions Posed By CANADA1 regarding the New and Full 
Notification of the EUROPEAN UNION2 
 
 
 The following communication, dated 23 March 2012, is being circulated at the request of the Delegation of the European Union. 
 
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 Netherlands 
 
Question 1:  Subsidy Scheme for En vironmental Technology – page 3 
 
 Could the EU indicate who has benefited from this subsidy?   
 
Reply 
  The Environment and Technology Programme  (ETP) stimulated the development and 
implementation of innovative processes, products and services that had a positive effect on the 
environment when compared to more common altern atives.  The ETP programme provided grants for 
R&D projects and preparatory market introduction st udies until 2011, stimulated mutual collaboration 
between SME's and set up expertise networks a nd sector approaches.  The following phases of the 
innovation cycle were supported: starting from feas ibility studies and ending with demonstration 
projects.  
 
 The ETP focussed exclusively on applications within SME's in the manufacturing industry.  
For example the chemical industry, the rubber and synthetics industry, the construction industry and 
the food and nutrition industry.  Ot her organisations, such as large companies or knowledge institutes 
could be called in as third parties.  Foreign SME's could participate as a project partner.  The projects 
had to be carried out mainly in the Netherlands and had to lead to a significant environmental gain (or 
increased sustainability) in the Netherlands. ETP did not support technical projects that were focused 
on energy related subjects. Per project between  35 and 60% of the eligible co sts were subsidized, with 
a maximum of € 350.000.     The applications the program focused on were products, (industrial) processes and services.  
This could be either business to business oriented, or business to consumer oriented.  Some of the 
evaluation criteria were:  the benefit for the envir onment in the Netherlands, the originality of the 
project and the participation of potential users in the project.  
                                                      
1 G/SCM/Q2/EU/3.   
2 G/SCM/N/220/EEC/Add.19.   G/SCM/Q2/EU/12 
Page 2  
 
   In 2010 and 2011 a total of 71 projects were gran ted out of approximately 160 applications.  
These projects covered a diverse field of subjects:  from alternative disinfection techniques for seeds 
to a new type of machine for paving roads and from a market research study for high pressure 
processing of foods to reclaiming non ferro meta ls from fine grain residue from thermal waste 
processing.  Since its start in 1988, the Dutch gove rnment has supported 1,200 eco projects by this 
program.  
 
Question 2:  The Regulation on Environm ental Investment Deduction and Accelerated 
Depreciation of Environmental Investments (MIA/VAMIL) – page 3 
 
 Could the EU clarify what are the eligibility criteria for these two programs (tax 
deduction and accelerated depreciation)? 
 
Reply 
 
 The MIA scheme, offering a tax refund on envi ronmental investment, and the Vamil scheme 
providing for voluntary depreciation on environmen tal investment, are two different schemes run by 
the Ministry of Infrastructure and the Environment, or IenM for short, and the Ministry of Finance.  The aim of both of them is to encourage Dutch en trepreneurs to invest in their business operations in 
an environmentally friendly way. 
  The MIA scheme allows entrepreneurs to deduct up  to 36% of the cost of an environmentally 
friendly investment from their fiscal profit while the Vamil scheme lets them decide for themselves when to write off 75% of their investment costs.  Th ey determine how fast or slow that will be.  That 
in turn offers them an advantage in terms of liquidity and interest. 
 
 All Dutch entrepreneurs paying income or co rporate tax are eligible to apply for the 
MIA\Vamil schemes.  The schemes are particularly interesting for entrepreneurs in the agricultural 
sector, shipping and industry, but also for entrepreneur s investing in sustainable transport, sustainable 
recreation and sustainable buildings.  Only investme nts that benefit (primarily) the Dutch environment 
are eligible.  Yearly, on average 8000 (ranging fr om 6000 to 12000) applications are submitted for 
MIA and /or Vamil.  These applications cover a wi de field of subjects but most of the reported 
investments relate to the agricultural sector.  A fi ne example is the algae bioreactor as bio farm:  
Algae are fed with wastewater in a closed al gae bioreactor.  The algae produce vitamins, anti-
oxidants, omega-3 fatty acids, antibiotics and natural fungus inhibitors which are used by fish farmers 
and fruit juice producers. 
 
 An Environmental List associated with the MIA\Vamil schemes contains 360 items of investment, or capital assets as they are referred to, which cause less environmental damage when compared to more common alternatives and are often in advance of legal requirements.  The Environmental List is annually updated.  Investme nts that are no longer regarded to fit in the 
MIA\Vamil schemes' objectives are removed and ne w innovative investments are added.  The IenM 
ministry bears in mind latest policy topics such  as biodiversity and climate change when making 
changes to the Environmental List.  Businesses (suppliers and entrepreneurs) can propose that a 
particular capital asset should be included on the list.   To be eligible, the environmental investment 
must at least: 
 
 provide an obvious environmental benefit.  This  environmental benefit can be achieved with, 
for example: 
 
o Lower (than required by law) emissions to air, water or soil, 
o Reduction of use or recycling of (raw) materials.  G/SCM/Q2/EU/12 
 Page 3 
 
 
   be innovative or must still have a small mark et share in relation to the alternative, 
 be more expensive than the envir onmentally unfriendly alternative. 
   
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