Flemish tax shift aims to lower electricity bills and boost climate action

Starting in 2028, the Flemish government will shift 362 million euros in taxes from electricity bills to those for natural gas and fuel oil in an effort to lower electricity costs and accelerate the region’s green transition. The measure, part of Flanders’ updated Energy and Climate Plan, is intended to encourage residents to adopt electric cars and heat pumps, thereby cutting greenhouse gas emissions. This was announced on Sunday by Flemish minister-president Matthias Diependaele (N-VA) and several other ministers. ​ The plan includes broader support for households, businesses and sectors such as agriculture, mobility,and industry with the aim of enabling Flanders to meet its 2030 climate targets.

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"Strong and ambitious"

This measure is part of the Flemish Energy and Climate Plan (VEKP), which aims to cut emissions by 40 per cent by 2030 compared to 2005. Currently, emissions are down about 33 per cent. To align with EU targets, that figure should ideally be -47 per cent.

Diependaele said he was "quite proud" of the plan during its presentation on Sunday, stressing that it was a team effort. “If we want to tackle the climate challenges, we will have to do it together,” he said. The coalition partners, he added, share climate concerns but also want to balance them with economic and social priorities.

Climate minister Melissa Depraetere (Vooruit) called the package "strong and ambitious." One of the key measures in her portfolio is the removal of 360 million euros in electricity levies, combined with a 180 million euro offset. This endeavour is funded via ETS2 emissions trading to avoid disadvantaging gas users.

Support for vulnerable households and small businesses

"The price of electricity is high in Flanders. We are among the highest," said Depraetere. "Expensive electricity makes it less attractive to switch to an electric car." She stressed the importance of keeping the total energy bill stable for average gas consumers.

Depraetere also announced a “renovation booster” for social housing, with interest-free loans for low-income families and extra subsidies for heat pumps. In total, nearly 1 billion euros will go to a social climate plan for vulnerable families and small businesses.

Flemish minister for mobility and public works Annick De Ridder, Flemish minister-president Matthias Diependaele, Flemish minister for Housing and energy Melissa Depraetere and Flemish minister for agriculture and environment Jo Brouns pictured during a press conference to present the Flemish Energy and Climate plan, in Brussels on Sunday 6 July 2025. © BELGA PHOTO NICOLAS MAETERLINCK

Agricultural and mobility commitments

In agriculture, minister Jo Brouns (CD&V) said 500,000 tonnes of CO₂ will be “solidarised,” or absorbed by other sectors. A mandatory, technology-neutral package of measures will be developed in cooperation with the industry. There will also be support for greenhouse horticulture. "No unachievable demands or expensive obligations," said Brouns, "but realistic and supported measures that are feasible on the ground." He added that Flanders already has “the most sustainable cow in the world.”

Mobility minister Annick De Ridder (N-VA) said the plan focuses on "smart, realistic and affordable options" to make transport more sustainable while preserving Flanders’ role as a logistics hub. She will present a new Bicycle Master Plan by the end of the year and is exploring a uniform battery check for used electric cars. The kilometre charge for trucks will be adjusted to EU rules, and support for micro-enterprises should enable 500 extra zero-emission trucks by 2030.

De Ridder also plans action on cycling blind spots, a pact to help cities green their logistics, and an investment plan for shore power by early next year.

Finally, the industry sector will see expanded access to greening scans and revised ecological support measures. Diependaele highlighted the existing ecoboost loan of up to 150,000 euros for self-employed workers and SMEs, and the “Climate Leap,” a pilot project that funds the most effective green investments through competitive tenders.


#FlandersNewsService | ​ Flemish minister for mobility and public works Annick De Ridder, Flemish minister-president Matthias Diependaele, Flemish minister for Housing and energy Melissa Depraetere and Flemish minister for agriculture and environment Jo Brouns pictured during a press conference to present the Flemish Energy and Climate plan, in Brussels on Sunday 6 July 2025. © BELGA PHOTO NICOLAS MAETERLINCK


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