Femke Groothuis

Femke Groothuis is reimagining the role of taxation as a lever for systemic change. Through the Ex’tax Project, she is pioneering a fiscal model that shifts the burden of taxation away from labour and onto natural resource use and pollution. By doing so, Femke is opening up a pathway toward a just and green economy — one that creates jobs, reduces inequality, and protects the planet.

Femke’s central idea is deceptively simple yet transformative: change the tax system to change the course of the economy. Instead of taxing people for their work, governments should tax pollution and the depletion of natural resources. This “taxshift” increases net take-home pay for households, and reduces the cost of labour, incentivizing employment. At the same time, it makes unsustainable practices more expensive, thus enabling an accelerated transition to a circular and inclusive economy.

By developing research, models, and policy proposals in collaboration with financial experts, policy makers and business leaders, the Ex’tax Project has brought this concept from theory into actionable policy. Femke demonstrates that fiscal reform is not a niche debate for tax lawyers — it is a key lever for systemic change with tangible benefits for society at large.

The current tax system is built on outdated assumptions. Across Europe and most of the world, governments rely heavily, or more and more, on taxes on labour. This discourages job creation and reinforces inequality. At the same time, pollution and resource depletion are often undertaxed or not taxed at all, leaving the negative impacts of pollution, climate disruption, resource depletion and biodiversity loss to be borne by society as a whole.

The distortions in our tax systems incentivize the exploitation of nature over the creation of jobs. The tax system rewards short-term extraction while penalizing long-term investment in human capital. Despite widespread recognition of the climate crisis and the need for inclusive growth, the tax system continues to channel incentives in the wrong direction.

Through the Ex’tax Project, Femke is tackling this problem on several fronts:

- Research & Evidence: Working with partners such as Cambridge Econometrics, Deloitte, EY, KPMG, and PwC, the Ex’tax Project has modelled the impacts of tax shift scenarios across EU Member States and in Bangladesh. Their studies show that shifting taxes from labour to resource use can create millions of jobs, reduce carbon emissions, and boost social spending.

- Policy Engagement: Ex’tax provides practical tools for policymakers, translating complex fiscal models into accessible strategies. Their work has been cited in Dutch government policy debates and European discussions on green fiscal reform.

- Business Mobilization: By engaging with businesses through surveys and partnerships, Femke ensures that the transition is informed by real-world concerns and garners support from the private sector.

- Narrative Change: Beyond numbers, Femke positions tax as a force for good — a steering wheel that can guide economies toward justice and sustainability. Through public speaking, media, and thought leadership, she reframes taxation from a burden to an opportunity.

This combination of rigorous evidence, coalition-building, and narrative leadership enables Ex’tax to influence systemic reform at the national and European level.

Femke Groothuis brings both vision and persistence to her work. With a background in political science, international relations and sustainable finance, she became convinced early on that economic systems must change at the root. After years working in sustainable investment, she founded the Ex’tax Project in 2009 to dedicate herself fully to the idea of the tax shift.

Known for her clarity, energy, and ability to bridge diverse worlds — from government ministries to boardrooms — Femke has built the Ex’tax Project into a respected voice in European policy debates. She combines a deep commitment to fairness with the courage to challenge entrenched systems, always seeking practical ways to translate ideas into action.

Her journey reflects a simple but powerful belief: that the rules of the economy are human-made, and therefore can be remade to serve people, and planet.