Belgian Households Pay 15x More in Gas Taxes Than Industry Gets Free Quotas

Belgian households are paying up to 15 times more in excise duties per megawatt-hour of gas for heating than the country’s largest industrial polluters, according to a new report from Greenpeace Belgium published on July 14. The analysis, released just days before the European Commission is set to propose a major revision of the EU Emissions Trading System (ETS) on July 17, exposes a stark inequality in how energy costs are distributed between citizens and industry.

The Scale of the Disparity

In 2024, the Belgian federal government granted more than €5.7 billion in energy subsidies to industry, according to the Greenpeace report. Of this total, €1.7 billion was allocated to free emission quota allocations under the EU ETS — the European Union’s flagship “cap and trade” carbon market. The report, titled “Payés pour polluer” (Paid to Pollute), found that a total of €4.4 billion per year in public money flows to Belgium’s largest polluting companies through various mechanisms, as reported by RTBF.

A particularly striking case is that of steel giant ArcelorMittal. Its Ghent plant emitted 20.8 million tonnes of CO2 but received 37.3 million free quotas — significantly more than needed. The company has received over €2.6 billion in total quota value, allowing it to sell excess permits on the carbon market for profit without reducing emissions, as La Libre Belgique reported.

How the EU ETS Works

The EU ETS, launched in 2005, operates on a “cap and trade” principle. A cap is set on total greenhouse gas emissions from covered sectors, and companies must surrender allowances equal to their emissions. While most allowances are now auctioned, a significant portion is still given free to industries deemed at risk of “carbon leakage” — relocating production to regions with weaker climate policies.

Jérôme Meessen, CEO of CLIMACT, an energy and climate consultancy, explained to RTBF that the system has proven effective overall, with covered industrial sites reducing emissions by 50% since 2005. However, he acknowledged a fundamental flaw: “Historically, there have always been a few too many free quotas. You even have sectors that, with all these accumulated quotas, didn’t need to make any effort at all. So that’s a system failure.”

Belgium’s Energy Tax Shift

The disparity comes against the backdrop of Belgium’s energy tax shift, adopted by the Chamber on May 29, 2026. The law progressively shifts excise taxes from electricity to fossil fuels through 2029 — reducing electricity excise from €50.33/MWh to €38/MWh while increasing gas excise from €8.72/MWh to €13.60/MWh and heating oil taxes from €17.3/1000L to €26/1000L. The first phase takes effect on August 1, 2026.

Economist Philippe Defeyt of the Institut pour un développement durable described the amounts as “ultimately tiny,” noting they “will get lost in the other variations of the bill,” as RTBF’s calculator article reported.

The EU ETS Revision Battle

The timing is critical. On July 17, the European Commission is expected to propose a major revision of the ETS for the post-2030 period. Deep divisions exist among member states, as Clean Energy Wire reported: Italy leads a bloc seeking relaxation or suspension of the system, while Germany, Sweden, and Spain support stricter rules and a phase-out of free quotas.

Under current rules, free allocations are due to be reduced from 2026 and phased out by 2034, with overall auctioning ending in 2039. However, the Commission is reportedly considering extending free allowances beyond this period.

Calls for Reform

Mathieu Soete, Energy Transition Lead at Greenpeace Belgium, stated: “Before asking for new efforts from households, our governments must reduce subsidies granted to big polluters and dedicate this money to a just transition.” The organization argues that redirecting these billions toward renewable energy and building insulation would both reduce emissions and lower household energy bills.

What to Watch For

The July 17 Commission proposal will determine the future trajectory of Europe’s carbon market and, by extension, the pace of industrial decarbonization. For Belgian households already feeling the pinch of rising energy taxes, the outcome will have direct implications — both for their bills and for the fairness of the transition to a low-carbon economy.

As Meessen noted, the ETS “is a system that works well, that brings revenue to regions — revenue that can be used for projects like strengthening electricity networks or developing decarbonized energy production.” The question remains whether those revenues will be directed where they are needed most.