Without having read the legislation, the two aren't necessarily contradictory. They only are if the subsidy mechanically increases with the tax.

A "climate income" is a good example of that. Everyone gets taxed by usage/pollution, but the collected tax gets redistributed evenly.

That way, on average there is no extra taxation, in fact it's typically a redistribution from top to bottom. And yet every individual will end up with more money the less they pollute. It's that individual incentive that makes the measure effective, but it's the redistribution that makes it socially acceptable (if implemented correctly)