ID 4803
Government Netherlands
Submitted for Fifth Ordinary Meeting of the Conference of the Parties to the Convention on Biological Diversity (COP 5)
Main Information
Title Green investment funds: Organic Farming, The Netherlands
Description The study examines how the innovative tax exemption on investments in green funds in place in the Netherlands since January 1995 is utilized to support organic farming.

In general, it was found that the economic gains from organic farming in the Netherlands were low, while the risks were high. The special tax exemption on incomes from investments in approved green funds can help alleviate or close the profitability gap between traditional and organic production. It allows investors in these projects to contract loans at reduced interest rates (usually about 2 per cent less than commercial rates), providing a financial advantage to organic farms over traditional ones. The funds have been heavily supported by the Dutch people.

Other incentives that would also help were identified as the removal of various adverse subsidies to traditional agricultural practices, the raising of public awareness about organic farming, the development and use of a certified eco-labeling scheme for organic produce, and the imposition of the polluter-pays principle in agriculture.

Web Link /doc/case-studies/inc/cs-inc-nl-farm-en.pdf
Additional Information
Countries Netherlands
Ecosystems Agricultural Biodiversity
Regions Western Europe and Others
Incentive Measures Environmental Funds / Investments
Positive Incentives (subsidies, tax breaks, ...)
Reform of Perverse Incentives
Keywords Eco-labelling and certification
Environmental funds
Market creation (organic production, tourism, ...)
  • United Nations
  • United Nations Environment Programme